When you’re starting up your business you might need to gain some investment so you can take your business to the next level. You need to remember that the investors are gambling every time they put money into a project or idea, so your job when you’re pitching is to prove to them that you and your business is worth the risk. You need to show them the upside, but also be clear about what they could possibly expect to lose and their odds.
We’re going to break down areas which we believe are essential for a pitch to be successful.
You want to show the investors exactly what you want to do with the investment and present them with your vision. You want to explain to them what your idea is and how you plan on achieving this. Showing them your vision allows them to understand where you want your business to be, how you’re going to spend their money and whether or not it’s attainable.
You should present to them who your customers or target audience are and the problems they face. Then you can present how your business will help them overcome this problem. This will help the investors judge whether or not this is a problem that the market is going to find useful or not.
You should go through the specifics of your product or service and how it’s differentiated from the competitors. You need to ultimately prove to them that it’s unique and a better alternative. Explain the different benefits your product or service brings and how you would use the investment to beat your competitors.
Your marketing and growth
Describe how you will reach your customers and what your promotion and sales strategy looks like. You should explain to them what channels you plan on using and why they work for your business. If you plan on using different channels from that of your competitors, you should explain why.
As well as talking about your business you should talk about the team who is behind making it a success. Focus on the management team’s experience and expertise so that your audience can get a feel for those who will be steering the ship.
Why would an investor want to invest already if you’re seriously in the red with no idea of how and when you’ll make it out. You should give your investors as much information as you can about your company’s financial state and show them a forecast of where you expect your finances to be in the future. You have to be realistic and be prepared to discuss and justify any numbers you might need to.
Overall you just need to ensure that you give them the information they want to hear. They want you to tell them about your business and how their investment is going to take your business higher and higher. You’re trying to sell your business to them and by ensuring that you follow these areas, you’ll be doing it in the right way.
It’s not just these areas that will make them want to invest, you have to show them your personality and tell them a story, and a good one at that. You want to draw them in so they want more.