A business pitch is a presentation where you explain to a group of investors what the business idea is and what you are looking for from them. This could be anything pitched in small duration, something as small and crucial as an elevator pitch to something as big as a 3-hour long discussion. Whatever it is, remember that finding an investment offer at the end of it, is the only thing that will matter.
In this blog, we try to explain what a successful business pitch should include. What kind of objectives are sought after and what to expect when you have done your bit.
You need to do your homework before you decide to show up for a business pitch. Investment opportunities do not show up at your doorstep time and again. You need to know when to pitch, what to pitch and what not when to stop when to keep going, who your audience is and what they are looking for.
Sometimes, it is better to discuss the business pitch outside of work, sometimes, it is better to have a telephonic discussion stating a cause to meet. All these things may not sound that great, but it is important.
Tell a story to invest
Your investors will lend you money, and that’s all there is about it. They expect you to generate some money as returns. They do not how it will work, what is required to make it work and so on. But at the end of it all, you should propel them to make an investment. So, how to do that?
A simple yet effective way is to tell them a story! Yes, a story! Tell them what the problem is by stating the market scenario, the market demands, the usual pros and cons, challenges and so on, but, in the form of a story. Describe your journey as something that will help them visualize what you see in your head. You will waltz your way in the investment talks.
One of the core characteristics an investor will look for in an entrepreneur is passion. How passionate the founder is, and how keen is he in taking things forward matters to someone who will put in money to fund the venture or a small time business idea.
The more passion, and enthusiasm one show in explaining the idea, the better chances of an investor believing the guy to cough his pockets. Present something that actually means something important to you. Tell the guys that you are capable of pulling things together as promised. This will help you gain goodwill and trust.
Back-up you story with hard data
Some investors ask for proof that can support your claim, and it’s fair they ask. Collect hard data related to your findings in the market. Find use-cases and statistics that can help you base some facts that can support your pitch and will leverage you to do better.
Things like break-even points, net margins, sales figures, return on investments and so on are investors favorite points. They listen too! So, backing your presentations with numbers, graph, and something that will tell a solid truth will always work. This ear believes in data. The more data, the more trust, and more brownie points. Even if you have an online business, this trick works best there too!
Leverage your image
Believe it or not, this is one of those important steps that people often ignore. No matter how capable you are, you should sometimes rely on creating first impressions. Nothing to question your ability to think, but a lot of people around here believe in slick dress code and fancy watches and the place you decide to take them for the meeting.
There are instances where a brilliant plan did not seek investment because the office space was kept on a low budget. Google has the liberty to dress casually. The thing is, you are not Google for now. It doesn’t matter how the investor dresses, it’s always important that you show up the right way to impress if that could matter in any way. Probably take them to a fancy restaurant to discuss your business plan and investment-related issues. It will probably help you serve a bit better in the beginning.
Being there from the very beginning in your business is valued as an asset. It’s about how well you can come up with answers and figures to the questions made in a discussion. When the time is right, and people are ready to invest, be assured to listen and carefully evaluate all factors that would go in the investment offer.
Have a plan in mind around which you are comfortable working with. If the investor has agreed to give more, then accept the value; in other cases, negotiate wisely. There are many other factors you could consider when negotiating, such as, what value will the investor bring in? what kind of market influence will he have? In what way can he be useful to the venture and so on. Start by evaluating what kind of small-time or online business you would like to set up.
A successful business pitch cannot happen overnight. It takes days to create one, practice and be ready about. But this pitch has to be so ready that anyone willing to listen to you should find your pitch worthwhile their time by not losing interest. These points will help you set the right expectations. Be assured, to make every opportunity count.