Just because you bought an investor list doesn’t mean they’ll throw money at you. Check out our guide on how to pitch your business to potential investors.
Do you have the perfect business idea but have no clue how to pitch it to an investor?
Investors all have the same goal: maximize revenue.
Your objective should be to guide them trough the process and show them how you can help achieve their goal.
If you have never spoke with a potential investor before or you aren’t sure what to say then check this out. We created a short guide on how to pitch your idea successfully. It’s a lot of common sense we have gleaned throughout our careers but it doesn’t hurt to repeat it.
1. Show them there is a need for your product/service
One of the most important steps is to show that your idea is already validated. You need to demonstrate you have a clearly defined audience that has a problem, and that you can help them.
Some business ideas are revolutionary. It could be a new type of smartphone or a medical device that saves lives.
If your idea is truly revolutionary, you won’t have to insist that much. But if you start a web design company and you need funding, you have to prove that your approach is unique.
Web design companies are dime a dozen. In this case, you have to come up with a different take on the service that will make you stand out.
2. Use storytelling to your advantage
Use storytelling to show how your product/service works and how it will improve the lives of your customers.
Just stating the benefits and the features of what you’re trying to create is not very convincing. Instead, use mental images to persuade your potential investor.
Also, make sure you don’t make your story too long.
Investors are bombarded with pitches every day. Don’t be just another entrepreneur who bores them to tears.
3. Explain how you will get your first clients
This is perhaps the most important part of your pitch.
Talking about your sales strategy shows you are more than just an idealist.
Many people have ideas, but implementing them is the hard part.
Explain how you’ll be able to reach your audience and convince them to buy from you. A company without sales is dead, and your potential investors know that too.
4. Anticipate objections and questions
Your potential investors will likely have many questions and objections. This is why it’s so important to prepare your answers.
They might ask you about your competitive advantage.
How do you plan to stand out? Why aren’t you charging less? Do you have an exit plan?
While you prepare your answers, you’ll also gain some insight on the weaknesses of your business idea.
The SWOT model can help you anticipate objections by spotting weaknesses and strengths in your business model.
Final words on how to pitch successfully
The way you present yourself can affect your pitch too.
Make sure you’re wearing your best