You’re ready to take your business to the next level but you need the funds to do so. This is where a pitch to investors comes into play. You may have mere minutes to impress investors with your pitch, we show you how to pitch an investor clearly and confidently.
Tips on how to pitch an investor
First impressions are always important in business, especially when you’re approaching investors to secure funding for your start-up.
To win over hard-to-impress investors, entrepreneurs need solid business ideas and killer presentations. Here are some tips on how to pitch an investor and get them to open their wallets.
1. Be prepared
Your pitch needs to address five main areas:
- What problem does the company solve?
- How will it make money?
- What has it accomplished so far?
- Who are the individuals running the company?
- What are they looking for from investors?
Remember, you want to be able to communicate those key points in a simple, clear way.
The more you practice your pitch in front of other people, and the more feedback you get, the more likely you are to give a concise, polished presentation that hits all those key notes.
2. Know what you want
Know what you want from the investor and ask for it. Be specific and clear and show that you’ve done your homework.
When giving your presentation, be organised and structured in how you ask for what you want and explain why you want it.
3. Be enthusiastic
Keep in mind that the investors you meet are hearing your pitch for the first time. They want you to be excited about it and they are relying on you to get them enthused.
If you have over-rehearsed your pitch it may come across as flat, so be sure to be upbeat in your presentation and avoid reading from notes.
4. Be authoritative
Tailor your pitch to suit the investor. Know what the investor’s area of expertise is. A presentation is stronger if an entrepreneur tailors his or her pitch.
Also know your industry inside and out and be prepared to answer questions. If you are knowledgeable about your industry, product or service and target market, it will inspire confidence in the investor.
5. Be receptive to feedback
Investors pride themselves on “adding value,” to the companies they invest in. They want to know you’re interested in their industry knowledge, technical savvy and contacts, not just their money.
If they offer you business advice, be open and receptive and not defensive.
6. Know your numbers
You are going to have to impress the investors with your knowledge of your financial projections. If needed, bring in an expert to help you prepare. But when it’s time to present to investors, you are going to have to talk with confidence about how your company is going to make money, when you will break even, and what your market looks like.