Starting or scaling your business can be difficult without proper funding. But there are easy ways you can prepare your pitch deck.
After you’ve created your business plan, it’s time to prepare your pitch. There are many ways to get startup funding for your business and one of them is to pitch your idea to venture capitalists or angel investors.
Crafting your pitch ahead of time is the most important step to make sure that you provide all the basic information the investors need.
Prepare your compelling, unforgettable pitch with the help of these 10 steps:
- Research your investor
- Consider timing your pitch under 10 minutes
- Start with a Story
- Present the solution
- Answer the basic questions
- Qualifications & success stories
- Impact investment makes
- Follow up with projections
- Tell them about your exit strategy
- Be enthusiastic
1. Research Your Investor
What kind of investor will your business model resonate with? Pitch to the right audience will increase the likelihood of support and funding. Once you have your potential investors lined up, it’s time to make your compelling pitch.
2. Consider Timing Your Pitch Under 10 Minutes
Be concise and provide all the basic information for your investors in a well-thought-out presentation. Be respectful of people’s time and avoid rambling. In the end, if your investors are interested in your business, they will ask further questions.
3. Start with a Story
There’s no better way to get someone’s attention than by telling a short story. This should be used to address the problem you are trying to solve through your business. Craft a story that your investor can relate to and make it easier to understand where you are coming from.
4. Present the Solution
Now that you have stated the problem, follow with the solution. This should be specifically explaining what your product/service is for and why it’s different, in other words, its unique value proposition.
5. Answer the Basic Questions
Do not leave vital information out, explain who your target audience is, the marketing strategy you will implement, who your competitors are, distribution channels, and revenue or business model. Learn what you need in a marketing plan and download our template to get started.
6. Qualifications & Success Stories
Briefly tell your investors any milestones you have achieved and show them that you have the skillset the business needs to succeed, as this will add credibility to your pitch. Show them that you’re worthy of their investment.
7. Impact Investment Makes
Tell your investors why you need the money, what exactly will it be used for, and how it would make a difference for your growth. Don’t forget to include what’s in it for them and answer the most basic question: How will investing in YOU benefit them?
8. Follow with Projections
Taking into account their possible funding, make future projections in sales and revenue to support the impact they could make and the return on investment.
9. Tell Them About Your Exit Strategy
Investors will only provide their support if they see your business as a sustainable one. They may ask questions about what you intend to do with your company once established. Be prepared to answer questions like: Will you sell the company? Will you go public? Will you keep it within your family? Is liquidation an option?
10. Be Enthusiastic
Enthusiasm is contagious. Show people how excited your idea is to you and how confident and optimistic you feel about its future success. Enthusiasm is compelling and will definitely catch the attention of your audience.
Do not worry if you’re not the best pitcher at first– practice makes perfect. Also, keep in mind that not everyone you pitch to will be compelled to invest in your business, and that is okay. Feedback is always beneficial and can help you improve your business model and your pitching abilities.