Start-up Entrepreneur: Tips on Pitching
So you have a killer product but in order for you to start gaining ground, and have your kingdom begin to grow, you need someone to inject money into your start-up. The key to attract investors is by pitching an idea that can be caught easily.
Every business owner needs to know the art of pitching, whether it is to find investors or to pitch a product to potential customers. A serious investor will only be interested in a pitch that is realistic, the numbers make sense and the idea is made clear. Here are some tips when pitching business ideas to investors.
Keep it short
It is understood in business that time is money so don’t waste the investors time with colorful stories. Fit your pitch into 30 seconds, this is known as an elevator pitch. You should be able to get your idea, numbers and ask across within an elevator ride.
Gain investors confidence
There are a couple ways to gain an investors confidence:
Business evidence – Show market research, cash flow and your track record with customers. Showing an ability to trade is important
Experience – Your team’s experience is important to show. An investor will gain a lot of confidence if it is made clear that your team has experience in running or working with similar businesses. Include skill sets of the team especially if they are skilled in marketing, sales, accounting etc.
Keep it real
An over optimistic pitch can easily turn off a potential investor. If the forecast sounds “too good to be true,” then the investor will think exactly that. Keep it real! Show 3 forecasts a) Worst case scenario b) Expected scenario c) Best case scenario. Make it clear how you arrived at your conclusion by providing evidence such as competitor analysis and market data.
An important point is to show cost control. Your plan should be to keep capital expenditure to a minimum and only to spend on what the company needs. Avoid giving yourself a generous salary as well. This will show the investor your focus is to grow the company and therefore grow his investment.
Evidence is crucial to securing an investor. If it is not clear that your business idea will work, the investor would either pull out or want a bigger piece of the pie. Produce proof of concept by starting small before looking for a cash injection. One way to do this is to partner with a company like Catch The Beat who will help increase your sales and database.
If you’d like Catch The Beat to help or even pitch on your behalf,
Set some time with me