As an entrepreneur, you are likely to have to pitch your business to an investor or investors at some point. For most entrepreneurs just the idea of needing to pitch their business idea to others can be nerve-racking. According to research the average pitch lasts about 45 minutes. These 45 minutes can often make or break a business; it is important to be as prepared as possible so that you can deliver a perfect presentation and secure investment. Let’s take a closer look at how you can create the perfect pitch for your start-up.
Preparation Is Key
When it comes to the perfect presentation, there is no such thing as being over-prepared. Making sure that you take enough time to prepare your pitch can easily mean the difference between a winning pitch and going home with your tail between your legs. You should start preparing for your pitch well in advance so that you have enough time to iron out all the kinks. A large part of preparation is doing research on the investor(s)/company that you will be pitching your idea to. The better you understand your audience, the more likely it is that your pitch will succeed.
Search for Chemistry
Bear in mind that not every investor and investee are the right match for one another. You are more likely to secure investment from an investor that you “click” with. Finding the right investor not only increases the chances of securing an investment but it can also make future co-operation a lot easier. Try and find as much information as possible on the potential investor before deciding to pitch to him/her. You can learn a lot about investors by analyzing their previous investments, temperament and lifestyle.
Be Very Detailed and Precise
Investors are usually highly detail-oriented people and you should reflect this in your pitch. Include as much relevant information as possible in your pitch; this helps the investor form a clear picture of how your business plan/idea can generate profit for them. Remember that investors are investing their capital with the aim of earning profit. They want to clearly understand the risks and rewards involved in investing before they will consider making any investment.
A perfect presentation should clearly communicate your business model; it should also show that you are confident in the success of your own idea. While asking for a specific amount of money during an investment pitch may seem like an intimidating prospect, it is important to do so. Your pitch should be able to show potential investors that you have carefully considered the financial needs of your business and that you have a full understanding of the financial aspects involved in running a business.
Be Ready for Q&A sessions
Q&A sessions are part of all business pitches and you should be ready to answer questions from potential investors at the drop of a hat. A good way to prepare for a Q&A session is to identify any possible questions that investors might ask you and preparing solid answers for those questions.
Remember that investors do not just invest in the business idea, but also in the entrepreneur. Most investors would like to see that the person that they are investing in is confident and in control. By being able to answer questions smoothly and correctly, you are showing that you are taking the investors seriously and this builds trust.
It is especially important that you prepare answers for the basic financial information such as potential turnover, profit margins and costs. It is likely that investors will focus on the financials of your business to assess the viability of the investment and having good answers ready for these questions can go a long way towards securing the investment.
Make Sure Your Pitch Tells a Story
While the numbers and statistics are an especially important part of every pitch, investors are also interested in the story behind your idea. Invest time and effort into making your pitch exciting so that it connects with potential investors on a personal level. One way to do this is by making sure that your pitch tells a story that the investors can relate to. Explain who you are, where you come from and how you came up with the idea for your pitch. This personal touch will add some excitement to the brand.
Pitching for potential investment is both nerve-racking and exciting at the same time. Make sure that you prepare a perfect presentation for this pivotal moment in your career as an entrepreneur because it can make or break your business in as little as 45 minutes.