Pitching your business idea to investors can be tough, but it’s important to remember that they’re not just naturally skeptical – they’ve probably heard a lot of bad pitches that have led them to be predisposed against new ideas. In order to make sure your pitch stands out from the rest, remember to follow these simple rules:
1. Make sure your idea is unique
2. Do your research
3. Know your audience
4. Keep it simple
5. Be passionate
1. When you’re trying to explain your business to someone, especially an investor, it’s important to be concise and clear about what it is that you do. You only have a few seconds to catch their attention, so make sure you don’t waste time giving them extraneous information.
2. When you’re trying to sell your product or service, it’s important to know who your target audience is and what they’re looking for. Give them a clear picture of who your customer is so they can see why your product is appealing to them.
3. explain why your product or service is worth the price you’re asking for it. If you can’t convince them that it’s worth the money, they’re not going to buy it.
4. Who are your competitors? (And if you say you don’t have any, that’s a big red flag for investors!)
5. Why are you the best person to make this happen?
6. Give your presentation with confidence and enthusiasm. Investors want a founder/CEO who can sell their dream to the world—not just to them.
7. Explain what type of distribution you have lined up for your new product. Has Best Buy or Radio Shack agreed to distribute your new product? Investors feel much more comfortable knowing you have an established player willing to distribute your wares.
8. Ask for a specific amount of money. If all you do is ask for money, then you can’t complain if an investor gives you $3.25 for a cup of Starbucks coffee.
9. Tell prospects exactly what you are going to spend the money on ( hint: a trip to Maui for you and your friends will not impress). Be specific about how the funds will be used to grow the business and make a return on investment for the investors
10. If you want to attract investors, it’s important to dress well, act confident, and portray the image that you don’t really need their money. Although it may seem sad, human nature dictates that people are much more likely to give you money if they feel like you don’t need it. By exuding confidence and appearing to be in a position of power, you’re more likely to attract the attention (and money) of potential investors.
Finally, use each pitch presentation as an opportunity to focus on your next presentation. When one group of investors asks you questions after your initial pitch, take note of all of these questions and make sure to answer majority of them in your next pitch so that the next group of potential investors won’t have to. Keep pitching and improving your pitch until you get funded.