Finding funding for your small business is critical to its success. Without the funding, it will likely never be more than a dream. And without investment capital, it does not matter how brilliant your concept is. To succeed, your business must appeal to potential investors willing to support these efforts. The audiences for your pitch varies, but typically consists of angel investors, private equity companies, and venture capital fund managers. Most pitches fail from easily corrected mistakes in the presentations.
- Be prepared. Amazingly enough, people who seek thousands and even millions of dollars often don’t take the time to adjust their pitch to their audience’s requirements. Take the time to rehearse your pitch. Though it may seem awkward to practice your pitch to an empty room or in front of colleagues or friends, you should do just that. Your verbal presentation needs to roll off your tongue and sound natural. This confidence only comes with practice.
- Keep it simple. Another common problem with pitching is that the presentations are too technical or try to communicate too much. While you need to explain your technology and its competitive advantages, make sure people understand what you’re saying. Don’t get so involved in the minutiae and how you came up with the idea.Your time is limited, so make it count. Many investors are technically minded, but they’re first and foremost human beings. They want to be inspired, and they want to understand the opportunity you offer.
- Enthusiasm is contagious. Your tone should communicate your confidence. Investors aren’t going to be any more enthusiastic than you are, so take the lead. However, being overly excited isn’t the same thing as enthusiasm. If you overdo it, people will interpret this pretense as you trying too hard to impress. Stay cool, but show genuine eagerness.
- Think visually. While PowerPoint presentations are a great aid, it’s important to use minimal text and plenty of visuals. It reduces the temptation for you to read from the screen. Instead, your eyes should be focused on your audience.
- Consider the customer’s perspective. It is imperative that your investor pitch explains your idea from the customer’s perspective. Many entrepreneurs attempt to forecast with lots of charts showing projected growth to “prove” the opportunity sitting right in front of the investors. It is more important for a company explain why the customer will be motivated to buy its products or service.
When you pitch your small business to investors, you have no control how they will respond. You cannot force them into supporting your business. Instead, you try your best to present a clear message, so the investors know enough to make an informed decision. With practice, these pitches will become more effective.