Social media has reinvented the press release. What began as a gradual evolution has resulted in a top down makeover for greater reach, utility and…
How to Pitch Your Business Idea Successfully to Investors?Networking Personal Branding December 28, 2015
An amazing business idea is worthless without the ability to successfully pitch it to investors, customers and partners. A business pitch is a presentation by one or more people to an investor or group of investors, though it can also be an email, letter or an impromptu conversation.
The goal of a business pitch is generally to secure the resources and funding necessary to move forward with a business plan or continue with an already established business or venture. The most effective business pitch will get to the heart of the matter quickly in order to keep investors from losing interest or worse yet, thinking there’s no point to the presentation.
When pitching, the speaker must get to the meat of the pitch as soon as possible; if investors don’t understand the idea right away, they’ll think customers won’t understand it either and won’t want to invest in the business idea.
Here are some crucial tips which will come handy to ever business professionals who plans to promote and pitch his idea for business development and attract investor funding:
- Be succinct – state what the business does in one succinct sentence so that the average person would understand. Remember that less is always more when making business presentations. The key to making the right pitch is to keep it concise and avoid lengthy verbose statements.
- Do not hypothesize of forecasting your business plan as the one that’s bound to derive huge returns on investments. This doesn’t mean you do not excite investors with the bigger picture, but always try to stay realistic, reasonable and responsible.
- Showcase your study on future projections of the business through three case scenarios – the best ones, the moderate or good case and worst cases. Each of these models should be based on careful study of facts, past and present performance insights, industry benchmarks, competitor analyses and defendable assumptions.
- Speak with confidence – know the business and be able to sell it in a confident and conversational tone – rehearse the pitch but don’t make it sound scripted.
- Speak frankly. Use simple language that doesn’t make you sound like a walking jargon bank.
- Be authentic. Investors will buy the entrepreneur first and the business second. Be authentic, passionate and likeable. You also need to find as much information as you can about your angel investor, about their past and current investments, business plans, success and industry know-how, time they can dedicate towards your business initiatives etc. Make sure to take utmost diligence and caution upfront. Most investors need minimum 3 months to think and work upon your idea to make wise investment decisions and accept your business proposal. So allow time to settle in, do not end up in frenzy.
- Have an asking price. Tell investors how much the business is looking to raise. Investors are always wary of businesses making far-fetched statements and showcasing huge dreams, sometimes these folks are greedy to take in more than they can actually chew.
- Before asking investors to fund with millions of dollars, prove what you can create and how you can articulate your vision well to reality. Perfect your sales strategies, marketing tactics on one product and make it work wonders in the market before you take the next big leap.
The tip that goes unsaid is, stay modest at all times. Do not portray to your investors as if you know the ins and outs of workings of a business plan. Be open to new ideas, finer tweaks and new learning in the process of setting up your own enterprise.
Try building a credible team of experts and network with smart leaders in the world to understand inner business workings. Investors are not just funding in a business idea but taking risks to invest into a management concept and the team.
Image credit: coca-colacompany.com