5 crucial tips for pitching business to investors
Pitching your business to investors can be a hugely exciting prospect. You’re sold on your idea, and already have plans for success three, five, ten years down the line.
While a little dreaming can go a long way in the business world, it can at times be hard not to lose track of reality. Big ideas count for very little, without the investment and support needed to make them a reality.
A great business pitch can be the difference when securing investment in ever-competitive circumstances. We’ve all witnessed the Dragons’ Den horror stories – what can you do to improve your pitch and land that deal?
Our team review 5 of the best tips to help you secure investment.
Tailor your message
Tailoring your message is an excellent place to start. You may have a great idea which stands on its own two feet, but in being close to your idea for so long you can often lose sight of the fact that it will mean different things to different people.
Investment can be hard to come by, and you may find it in unlikely places. Different people will invest in your business for different reasons. Tailor your pitch to reflect this, and make your pitch as relevant as it can be.
By their very nature, business pitches are short. It is therefore imperative that you stay focused, both in terms of your message and your delivery.
A pitch ought to outline very specific things. Your 10-year business plan is certainly not one of them, nor are your wider thoughts on the state of your industry. You have a limited amount of time to make your pitch – make each word count.
Tell a story
So what should your pitch include? One of the most crucial pieces of advice is to hang your pitch around a clear narrative.
Details are of course important, but you should avoid reeling off endless facts and figures.
Not only do investors buy into what you’re selling, but they want to understand why. Hard figures can seal you a deal, but an emotive pull to get investors invested personally in your vision can be just as important.
People like stories, so tell one. They also buy into the people behind ideas, so sell them one.
What exactly do you plan to do with the money you’re looking for? This may seem an obvious question, but for all an investor might buy into your vision, they’ll want to know exactly how you’ll be spending their money.
This is not the sort of question you may include in too much depth in an initial pitch, but one you’ll be sure to be asked further questions on. It’s highly important to anticipate questions like this; a great pitch can fall apart if your idea crumbles in a mess of vague answers in response to an investor’s intense scrutiny.
Think ahead in order to stay ahead of any concerns. Demonstrate your thorough planning, by being prepared to answer questions from the harsh reality of an investor’s perspective, not merely those of a budding entrepreneur with a great idea.
An investor is investing in you, as much as your idea. Just as you need to inspire confidence in your business idea, you need to inspire confidence in you as a potential business partner. They will be investing their money not just in business, but in the individual who chooses how to spend it.
A sizeable investment can often be the start of a successful, long-term collaboration, and the relationships at the heart of this are so often crucial.
In many cases, once you reach the pitching stage, an investor is likely to be interested in your business idea. The next step is to convince them to take that plunge.
Doing so involves selling a vision, and a piece of yourself. Be enthusiastic, be prepared, and sell the ideas behind your business.
Don’t forget, if you found this helpful please feel free to share with others. Also, if you do get your investment and need a virtual office London, then don’t hesitate to get in touch.