10 Tips for a Successful Entrepreneurial Pitch
One of the hardest presentations to make is the Entrepreneurial pitch. You have a great idea for a business, and you want someone to give you their money to make it happen. The problem is that Venture Capitalists, Angel investors, and even rich uncles are risk aware and cautious with their hard earned capital.
Why? Because 99% of the pitches they hear sound like a guaranteed, sure-fire route to losing their money!
If you are pitching to investors, and hoping that they will give you money their money for your new venture, you should subscribe to the following rules:
1. What is it?
Explain exactly what your business is within the first thirty seconds. Many entrepreneurs waste valuable time giving loads of data, background and other info - all the while investors are left scratching their heads thinking, ….. What the heck does this business actually DO?
2. What's the Customer Base
Tell your audience who your customers will be. Paint a vivid, specific picture of these people. Know you cusotmer Avatar and show whay they are a great fit for your offering....
3. Why will the Market Buy your Product or Service
Explain why your customers are going to give you their hard-earned money.
4. Who are the Competition?
Explain who your competitors are. And don’t fall for the trap of saying you have no competitors because you’ve the next big thing in a huge untapped niche. If you say you have no competitors, that is a certain sign you are unsophisticated and deserve no investment money!
5. Why are you and a Solid Bet?
Explain why you are the ONE to make this happen.
6. Be Confident & Enthusiastic
Give your presentation with confidence and enthusiasm.
Investors want the founder / CEO to be a chief salesperson; they want to see that you can convince the world of your dream - not just them.
7. What Market Interest Do You Have ?
Explain what star you can hitch a ride to.
Has major blue-chip or tier one retailers or market sector leaders agreed to distribute your new product? Have you got a deal with Harrods or Lidl? Do you have an established sales channel? Investors feel much more comfortable knowing you have an established player willing to distribute your wares.
8. Know How Much You Need ...
Ask for a specific amount of money. If all you do is ask for money, and then donlt detail what you need to support the busienss, then you can’t complain if an investor only gives you £3.25 for a cup of Starbucks coffee.
Know what you need, both now, and in the future......
9. How you intend to spend their money ...
Tell the prospective investors exactly what you are going to spend the money on (hint: a trip to Maui for you and your friends will not impress). Investors won't pay for the company limo - unless you are a chaffeur business, and they will expect a solid grasp of the business accounting and finances...
10. Be Smart, Dress Well, - but Don't Beg !
Dress well, act confident, and put on the air that you don’t really need their money, but would be willing to accept it if they bring enough to the table to be a strategic partner for you. Sad but true regarding human nature, but people are much more likely to give you money if they feel you don’t really need it.
11. Take away the Lessons Learned and benefit from the Experience
Finally, make each pitch presentation serve as a focus group for your next presentation. When one group of investors asks you a series of questions after you pitch, write down all of those questions and make sure most of them are answered in your next pitch so that the next group doesn’t have to ask them. Keep pitching and keep improving your pitch and eventually you may get funded.
If you need a definitive guide and training programme to help you prepare your killer pitch, head over to www.2mpmc.com/PitchCRAFT - where we have built an online course specifically to help the SME business owners and Start-Up Entrepreneurs