Pitching your idea to your potential investor seems incredibly nerve-wracking. It is like the feeling of giving a presentation in front of the entire class. The only difference between the two is that the former one is more challenging!
Do you wonder if your potential investor is interested enough? Will they like your idea? And most of all you wonder if this potential investor is going to fund your project or not?
According to the INC.com report, 42% of the startups fail due to lack of initial cash funding along with other reasons like legal challenges, poor marketing, lack of innovation, or disharmony within the team.
Then how can you ensure that you get investors for your startup business? By not doing mistakes that most of the entrepreneurs commit unknowingly and end up shutting down their business. Also, they practiced the best ways to approach their investors.
Here are top tips for pitching your great ideas or products to investors:
- Nail your Elevator Pitch
Your elevator pitch is a teaser of your startup business idea. These 30 seconds of elevator pitch should explain everything that someone would need to know when they meet you for the first time.
Your elevator speech should tell your investors everything if they have no background knowledge about your startup.
It should be crisp, direct, and clear. And simply describe your product or idea. It should cover the 3W`s- ‘What you do,’ ‘What problem you solve,’ and ‘Why you are different?’
After your pitch, make sure to connect with the person listening. Ask them questions and resolve their queries.
- Research about your Potential Investors
If you come prepared, the battle is half won! So before doing your pitch, do some research on who you will be presenting to.
You can search for the list of Angel Investors network that focuses on your region. Some of the investors may be a popular figure. So you can research well about them online. Study about their patterns, as some investors like to be involved in the company they are investing in. Others would rather be hands-off and would rather like to receive quarterly reports on profitability.
- Talk on Facts & Figures
Provide solid data reports when you are pitching your idea to a potential investor. Investors are always interested in what you have already accomplished. Also, how much profit they will make post-investment in your company.
The value of a startup is often built even before they have made profits. The numbers behind it are often driven by speculation of how good the company could perform shortly.
However, you must also be well-prepared to back up the numbers you provide to your investors. Investors would want to hear the reasoning behind your numbers.
Do not just give a random figure of new customers your company is acquiring every month. Say the exact number because it does not matter if you are attracting 20 or 20,000 customers. Your transparency and honesty are what matters the most!
Always remember that an investor is not just investing money into your company, they are giving it to you. And they are investing because they believe in you. Hence, give them confidence by providing the real data.