Your business pitch can jump start your dreams — or send your idea into oblivion.
Serious investors get pitched constantly, so you should assume that they’re not going to give you a lot of time, which is why it’s so important to grab their attention and convey key points quickly.
Good entrepreneurs know how to attract angel investors and venture capitalists so that they’re willing to commit their money to your business.
Of course, every investor is different; they all have their own preferences and approaches. For instance, some investors have a less-structured or casual conversation in the first meeting, while others prefer to go directly to the pitch deck, followed by a structured conversation before determining whether to proceed further. As such, it’s imperative that your presentation is as important as the idea itself.
Because you understand your product inside and out, but not your to-be stakeholders, it’s important that your idea be demonstrated, explained and experienced as efficiently as possible so that people can relate to it. As a result, the first 60 seconds of your pitch should focus on the 3 Ps: product, people and passion. Investors like entrepreneurs who are passionate about their ideas and can articulate the problems they intend to solve.
With that in mind, here are four tips designed to help you create a successful business pitch:
Show Early Success
No one likes to invest in the dark; investors want to know if you’ve had some success with your idea. That’s because many ideas look world-changing on paper but fail miserably when put in front of customers. A basic prototype, a stellar reputation in your local market, early success data revolving around revenue, user growth, retention and engagement can all help woo potential investors. Of course, your investors see a ton of spreadsheets every day, you have to go out of the box here. You can do this by turning your pitch into a short story; that will help you hold their attention while you make your point.
Focus on Graphics and Numbers
Your pitch should be less text and more pictures backed by numbers. Using dedicated investor pitch deck PowerPoint themes can help you showcase a summary of business plans and your startup vision in an engaging manner. Your presentation should also be self-explanatory and validate your selling points. Consider creating growth-related charts and projections for a better understanding of your audience. A typical investor pitch deck focuses on the problem, solution, market size, business model, marketing plan, competition, better/different, and team composition.
Know Your Audience
Not all investors are the same, nor do they have the same goals, so you should know the audience you’re pitching; understand their perspectives, experiences, backgrounds and objectives. If you want your stakeholders to realize the value of your proposition, then determine what is important to them, and work on your pitch accordingly. At the end of the day, your pitch should be able to push their buttons and make them excited about your product. You have to make them understand why your business is great for its investment portfolio.
Every investor pitch revolves around one big question: How much would it cost to gain a customer? Include data about customer acquisition costs (CACs) in your pitch deck. You can start by providing cost per marketing channel, and consider creating a plan for the costs and how your business plans to lower them. After all, every investor wants to invest his or her money into a scalable business. It’s all about the execution — so prove to your investors why your team is capable of carrying out the plan.
When it comes to garnering investors and funds, your pitch is often more pivotal than the idea itself — which is why it’s important that you know how to stand out from the crowd and deliver exactly what investors are looking for.
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