Pitching to investors can daunt many potential entrepreneurs. To lay yourself out to criticism and rejection can deter many from seeking investments. However, that business funding could be the gap between success and failure. You have prepared your business plan, done your market research, and sure that you should go forward with your idea? It is highly recommended that you get some results from testing the market first, and proving that the concept behind your business is sound. Why? Securing a financial investment for your company requires that you convince your potential investors that they should risk their money on you. In the long run, they must ensure that they will get their money back and more. Moreover, having prior sales will at least alleviate their fears that the business concept is fundamentally unsound.
Narrate a story
Your pitch must be like a seamless story where everything stays connected such that all of your points flow flawlessly. Paint out the grand narrative! Say how your company is going to dominate and achieve massive sales, and also provide the steps with which you are going to take to ensure that the dream becomes a reality.
When your company is in its early stages, it is better to concentrate on the future, and how much potential it has to grow and pay off the faith the investors have in you. Always remember this. Illustrate a narrative to answer the investor’s unstated question: How will this make me a lot of money in five years?
Show them the part of your business that is untouched. Perhaps there is an untapped market that you have not worked yet due to the lack of manpower. Include this point in your pitch as well! Additionally, show them how their investment will lead to you having the resources to tap new markets. Otherwise, develop new lines of products that will grow your business to greater heights, thus earning them money!
One important thing is this. Ensure to capture the attention and summarise what your business is about within the first 90 seconds. If they can understand your business within 90 seconds, it means that you can articulate yourself and capture their attention. Always aim to be short and concise.
Anticipate the hard questions
You may be thinking that you don’t want the hard questions because it exposes you to criticism and the experience may be uncomfortable. Embrace it! When the investor is asking hard questions, it means that the person is thinking critically about your business and thinking about a potential investment. It’s a good thing. Besides, it is a good chance for you to get feedback. Prepare for it. This can be done so by anticipating the common questions beforehand. Know your numbers inside out, as well as the primary risks you will face. Rehearse your answers to those question. Confidence is critical when portraying yourself in a good light in a pitch.
A good way to show the investor you are serious about your business is to show that you have a clear projection into the future. We will do this in 6 months. In 2 years, we will achieve this much of market share. In 5 years, this is how our company will look. By having objectives laid out in a timeline signal to an investor that you have thought long and hard about your business and where you want to go with you. It is more likely then that they can share your vision for your business, increasing the chances that you will attain your much-needed investment.
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