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How to Pitch Your Business Idea to Investors

By May 18, 2017 No Comments

A lot of people have good business ideas.  However, when they try to go into entrepreneurship they realize that they do not have enough startup capital.  Fortunately, that does not mean that their dreams are dead.  There are  investors that can provide seed funding to begin your ventures and turn your ideas into reality.  However, pitching your business idea to investors is not an easy task.

There are two (2) types of investors that can fund your business project.

  • Angel Investors.

An Angel Investor is a person that often uses their personal money to help you achieve your business.  Usually, this is  someone from your family or circle of friends. They are willing to take the risk for they believe that what you are planning is possible and profitable.

The capital that they are providing is often a one-time cash fund that will help you get started.

  • Venture Capitalists

These are usually companies that are capable of giving significantly larger amounts as an investment. They are not just interested in helping you start your business, but are also interested in becoming your long-term partner in building and growing your venture.

Based on the above definitions,  it is often recommended that you firstly pitch your business idea to an Angel Investor especially if you are new to entrepreneurship because they have more manageable expectations and are easier to deal with. However, Venture Capitalists are your viable option if you need both money and assistance for your planned business.

Today, we will give you five (5) tips to master in ensuring a well-presented and convincing business pitch.

Rehearse your pitch thoroughly

An idea pitch is often electric and exciting.  Rehearsing your pitch is a critical point that one cannot overemphasize. Practice it in front of a mirror and list every important key point in an index card so that you will not stumble.  Be concise and get straight to the point when making the specific pitch.  Leave your audience curious and wondering so that they will ask you to tell them more.

Be compelling

Appealing for pity from your investors will never work.  Instead, explain to them your business idea thoroughly and make them see why it is a reasonable investment for them. Talk with true passion; be brief and concise. Outline your vision of the business in in 2-3 years’ time. Provide real-life examples of problems and solutions for your business.

Prepare a solid business plan

Making a solid business plan might require you to hire someone, so be ready and open to working with a financial analyst or a business consultant to ensure that you have a well-thought project. Your business plan will provide compelling numbers for your pitch, so it is crucial to get it right and be accurate with your data.   It should also have the smaller and more complex details about your business that you may not have time to mention during your pitch.

Build a good team

Investors invest more on the person, rather than on the business idea. They invest on those who they can trust and believe can make it work. So be sure that all members of your team possess these qualities.  During your pitch, highlight details such as their marketing experience, education, skills, and industry knowledge. Then connect the team members to your business plan explaining how they are an asset that will help your business to grow.

Have an exit strategy

Some investors are fond of asking what your exit strategy is for the business is. So ensure to prepare one, given both the best and worst case scenario.  Present a concrete and realistic exit strategy that is both practical and profitable, not just for you but more importantly for them. Make your presentation simple but visual.

Pitching your business to an investor can be nerve wreaking but it is not as hard as it seems.  It helps to remember that they are there, taking their time off their schedule to listen to you, because they sincerely want to help you start your dream business.

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