How to Demonstrate Absolute Confidence When Pitching an Idea to Investors
It’s terrifying to pitch your business idea to a gathering of investors.
I know this because I’ve been there.
It’s like giving a presentation in front of the class in elementary school, but a million times more intense.
You’re not sure if they’ll like your suggestion.
You’re unsure whether they’ll like you.
Most importantly, you’re unsure whether or not they’ll fund you.
Not securing capital is a death sentence for many startups. Thirteen percent of failed entrepreneurs mentioned a lack of finance as the cause for their failure.
Even if you have cash on hand, there will come a time when you will need to raise extra funds to help your firm develop and scale.
Best ways to Pitch an Idea to Investors
The following are some helpful suggestions for proposing your idea:
1. Get your elevator speech down pat.
Your elevator speech is a brief explanation of what you do that lasts 30 seconds or less. When someone meets you for the first time, it should include everything they need to know.
Even if they have no prior knowledge of your organization, this should provide them with all the information they require.
Your elevator speech’s purpose is to be able to communicate your idea or product succinctly enough for the other person to be intrigued enough to ask follow-up questions.
Here are the three major points to include in your elevator speech:
What you’re up to.
Keep it brief! This might be as easy as “FakeCompany develops cutting-edge analytics for…”
What problem are you going to solve?
Keep it brief, but be specific about the problem your solution solves for your target market.
“Crazy Egg allows businesses to understand what’s working on their website, and what isn’t, by using heatmap technology to track where visitors are looking and what they’re interacting with,” according to Crazy Egg.
What makes you unique.
Why should the individual you’re speaking with choose your product or service over the ones offered by your competitors?
It’s possible that your product has a feature that no one else has, or it’s simply easier to use. You must be aware of whatever your major difference is.
After you’ve finished speaking, make eye contact with the individual who is listening.
Ask them a question, and then answer their follow-up inquiries. Most importantly, keep in touch.
As an entrepreneur, you should always strive to expand your professional network. You never know who will give the next source of funding or opportunity for you.
2. Determine your target Audience
Do some study on the people you’ll be presenting to before you give your pitch.
Some investors may be well-known people about whom you can learn a lot online. Many others desire obscurity, making it difficult to learn anything about them.
Try to figure out their patterns if you can.
Is it important for them to be involved in their investments?
Some investors pick firms they want to be a part of and want a seat at the boardroom table in return for their investment.
Other investors would prefer to be hands-off, receiving quarterly profit reports but generally remaining uninvolved.
3. Make use of real-world data (and be able to back it up)
When you’re pitching to investors, you need to be able to back up your claims with facts.
Investors are interested in what you’ve already accomplished and how that can benefit them in the future.
Investors want to know why you came up with those figures.
Don’t just declare you’re gaining new consumers every month; quantify it. It doesn’t matter if you’re attracting 10 or 10,000 people; the fact that you’re providing accurate information demonstrates your transparency.
Keep in mind that an investor isn’t simply giving money to your firm; they’re also giving it to you.
They’re putting money into you because they believe in you.
Make facts a vital component of your argument to give them confidence in their decision.
4. Tell a compelling story
It should be the same with your pitch.
If you just have five minutes to pitch your business idea to a group of investors, tell a tale and throw in a few facts.
To demonstrate how your product works, use traditional storytelling techniques. For your story, create a protagonist and an adversary.
If you’re talking about your motivation for beginning your business, the protagonist maybe you. It’s also possible that this is a made-up example.
You’re pitching to folks who have their own success stories. Make your presentation about how you can assist them in achieving their goals, whether monetarily or in a humanitarian sense.
Make sure you practice your pitch.
Make a strategy.
Make a good impression!
Also, have a good time.
Investors are looking for someone with whom they can put their trust. Use your enthusiasm for your goods to persuade people to give you a chance.
Have you ever presented an idea to investors? What are some of your finest financial tips?
Source: Editorial Times