[Editor’s note: This is a first in 3 part series of Pitching for Maximum Success. Next post in the series will be up coming friday]
As there are two sides in a coin, you need to think from an entrepreneurial angle being an entrepreneur and from the perspective of an investor. Startups quite often fail to think from an investor’s perspective. And the reason why majority of the startup pitches fail because the business idea is not convincing, lack of soft skills, lack of expertise in the team and does not meet investor’s portfolio needs.So, how does an entrepreneur go about creating a successful startup pitch?
Every idea pans out after pondering about the problems. Hence, it is imperative to explain the problem and how you are going to solve it by providing the best solution. It actually helps others to get a clear picture of how your product or service is going to solve that problem.
In the startup lifecycle, an entrepreneur has to pitch to different people from investors to potential customers. Each pitch is different. Your content speaks more than how you deliver it to the people. For a successful pitch, your product needs to be good, has to fill a niche and address a problem.
It is time to get an insight on how to pitch to the investors!
Your Pitch to Investors
Every idea is unique. However, finding about your competitors will help you to understand why your product or service is unique. Project the most interesting facts about your business venture and huge milestones. Not all investors are the same. Do a background study on the investors like their industries, prior investments, reputation, preferences, etc. The more you are prepared the better you can handle any situation with confidence.
Prepare yourself in answering these questions before meeting your investors.
- Why the investors should approve your idea?
- What is unique about your idea when there are other potential similar business ideas that are already floating in the minds of investors to invest their money on?
- What is the proof that your idea will work in the long run?
- What is the market size?
- Who is your target audience?
- What is your financial projection?
- For your business model, how are you going to generate revenue and what is the timeline?
Remember, investors are also humans like you and their analytical minds may change anytime because most of the time they think about the exit.
The investors are always flooded with questions on their minds and it is critical how efficiently and quickly you answer them. Then the chances are more that your ideas will likely seal the deal.
For example, the best pitch should cover the essential elements
- Your business solution should create interest and human connection
- Present a strong team
- Have the right balance while presenting all the critical data because your data will speak more than your lecture
- Do not pretend there are no risks involved
The secret is that the human mind is capable of remembering the stories most of the times than the data. The wise choice is to use storytelling concept to make your pitch really memorable and successful.
Ever pitched to Investors for fund raising? Tell us your experiences in the comments.
About the Author
Mary is working as a Content Team Head in a startup company in Bangalore. She is a nature lover and has love for helping and inspiring others. She is passionate about reading and knowing about supernatural events in the world. In the free time, she scribbles her ideas and thoughts in a paper.