Seal the deal: 7 Secret Tips to Improve Your Investor Pitch
You have prepared the best business plan. Your business idea is profitable and flawless. Now, all you need is funding. But let us tell you that it can be intimidating to ask investors for funding if you don’t have any existing connections.
The truth is, even if you have a great idea and a business plan, there is no assurance that you will find investors. Sometimes, this fear can be discouraging, but you must stand on your ground and be confident to ask for what you need.
You have to work twice as hard to make sure every pitch meeting gives you a good chance of closing the deal with the investor. And to ensure that you get the funding you need, here are seven tips to improve your investor pitch.
Tips to Make a Brilliant Investor Pitch
“Price is what you pay. Value is what you get.”
~ Warren Buffett
So, try to make a compelling pitch that investors can relate to and comprehend where they are investing. Make sure your business pitch reflects the future value of your idea. The following tips will help you to curate a brilliant pitch to attract investors.
#1 Know who is in front of you
Every investor you meet is different. You should know a little about your audience first because it will help you tailor your presentation and give the best business pitch. Research the backgrounds of the people you will be presenting to before you go to meet. In which industries and companies have they invested? Are they related or even interested in your business?
Sometimes, a Twitter or LinkedIn profile of the investor can tip you off to their interests. For example, you can go through their posts, read their articles and bring those topics with you to the meeting. It will help you to develop a strong connection with the investor.
If you cannot find any information beforehand, make a point to start your presentation by asking investors about themselves or giving them a chance to tell you about their interests and dislikes. Then utilize that information, and make adjustments in your presentation accordingly.
This tip will also help you attract investors to your newly built application.
#2 Short and on-point pitch
We consume a vast amount of knowledge every day, and that increases the value of conciseness. It is the key to win your business pitch and future success. But you should be able to express your business idea in 2 minutes or maybe five bullets. It is called the elevator pitch.
Simplify your messaging, keep elements that build up your business, and leave everything that is not critical or may take time. Practice your pitch on friends, family, and even your colleagues until you nail it.
#3 First impressions matter
Practice until the first five minutes of your presentation are flawless. It is a chance to hook your audience.
- Point out the market conditions, current innovations, or customer problems that make your idea a problem solver or necessary.
- Offer a reason why your idea can grab the opportunity and take advantage of it.
If the words you speak in the first five minutes do not make the investor learn more, it does not matter how exciting the remaining pitch is. Once your idea gets dismissed, it is tough to gain interest.
#4 Share the “why”
Investments are made on the ideas and the people, not on the projections. It is because investors know that the future is unpredictable, and numbers are unverified projections.
Focus on convincing the investors by telling them why you are starting a business with an idea and your vision for its future.
#5 Listen and Learn
Have you ever had an encounter with a person who never listened and just kept on speaking? Now you know how the investors might feel if you don’t listen to what they want to say.
We agree that you should be confident and demonstrate a clear understanding of your business. But there are still many things you need to learn.
Investors know many things, and they may be a vital source of advice and direction, especially an investment that goes over the capital.
#6 Know your startup KPIs
There are some startup key performance indicators that you need to solve before your pitch to an investor. These KPIs illuminate your intimacy with how the business is growing and what its current growth state is.
In addition to your dedication, you will have an expert team and early market traction, so know your KPIs inside and out.
#7 Customer acquisition
It is one of the most common sections of an investor pitch that gets skipped.
- How will you reach your customers?
- How much is it going to cost?
- How do you measure success?
The investments should allow you to calculate your customer acquisition costs, but you should mention how you will carry out the actions. Including how you intend to reach customers, the channels on which you will advertise, or the techniques you will use to track and monitor customer data.
You have already performed the market research. You know your customers. So why not show investors what it would look like when you start working.
Best of luck
These tips will help you put your best foot forward. Keep in mind that nothing is more crucial than consistently pitching your idea and iterating your presentation. The better you can hone your presentation, the more you present. Think of every rejection as an experience, an opportunity to learn, and your pitch will become better and better.
