There is no such thing as a perfect pitch. But there are clear actions you can take to make your business pitch to investors more likely to be successful. Delivering a good pitch can change the course of your business - and your life. Preparing your pitch requires practice and homework, so you don't lose your investors before you even get started!
5 Tips for Pitching Your Business
Idea to Investors
1. Be Prepared
You never know when opportunity will strike. Tech entrepreneur Marvin was nearly speechless when he ran into one of his idols, businessman investor Marcus Lemonis, The Profit. When Marcus inquired what business he's in, star-struck Marvin relied on his elevator speech to pitch his new SaaS, which he'd practiced and perfected.
If you're presenting your pitch at a scheduled meeting, have your tools ready: business summary, pitch deck slides and product demonstration.
tip: Don't send your business plan to potential investors unless they ask for it: that's a sure way for your work to end up in a digital trash can.
2. Share Your Story
Know your audience, and tell your story in a compelling, authentic voice that your audience can relate to. Use language your audience is comfortable with: and that you're comfortable with. Don't fake it: if you're not an MBA, don't try and talk like an MBA. Tell your story in your voice. Your investors are investing in you: your pitch needs to tell your story.
3. Solve a Problem
Why did you start your business, did you have a personal ah-ha moment when you realized you could build a better widget? What problem are you solving, and for whom? Who are your competitors - and why can you do it better or cheaper? What's your competitive advantage?
4. Know Your Numbers
We all cringe when watching Shark Tank, and one of the sharks asks for next year's sales projections or current production costs... and the entrepreneur doesn't know the answer! It's your business: if you don't know and understand your financials, how can you expect a successful pitch to an investor? Explain your assumptions and your 3-5 year financial expectations.
5. What's Your Goal?
Are you asking for money, or consulting, or to sell your business straight out? Do you have an exit strategy? Do you have a team working for your business - and are they part of the package?
Business investors are investing in you - not just in your business. No business pitch is perfect - but your investor pitch is more likely to be successful if you understand and deliver what investors are looking for.