Fine-tuning a pitch to investors is essential for many small businesses, and asking someone to invest in your dream can be stressful. Below are a few key pointers to keep in mind when working on your pitch.
KNOW WHAT YOU WANT: Go into the pitch with a defined amount that you’re asking for. Be prepared to explain how you plan to utilize the investment—to purchase equipment or inventory, secure a necessary patent, amp up marketing or paid advertising, etc.
STICK TO THE FACTS: While it’s important to share your passion and your business journey, a potential investor is primarily interested in the hard numbers. Understand every angle of your business and build a case for its profitability. What problem does your business provide a solution for? Who is your target audience? Who are your competitors? How is your product/service and price point more advantageous than your competitors’? What were your sales over the last twelve months along with net profit and profit margin? Be prepared for investors to poke holes in your business plan, so equip yourself with all the facts.
KEEP IT ENGAGING AND FOCUSED: A generic, longwinded presentation may not keep an investor’s attention. Research the investor ahead of time and find a way to tailor the presentation to him or her. Hook them in with a compelling story, and get them involved by asking questions and bringing samples or prototypes to demo your product/service. An investor may be more apt to help finance if they can see, feel, touch, and/or taste your product before committing. Remember to keep the presentation concise by sticking to the facts; cover the key points without going into extreme detail or going off on tangents. You can always leave them with a full-length executive summary or deck for reference.
END ON A MEMORABLE NOTE: Make sure you end strong! Leave a potential investor with the three most important takeaways regarding your business.