How to pitch your business idea to investors
So, you’ve come up with a brilliant idea for business while doing grocery shopping at the supermarket or driving back home from work. You can consider yourself lucky because many entrepreneurs plug away at it for so long. The question now is what you do now. Failing to deal with it for months or years is something that you shouldn’t be doing. If you’ve got a great business idea and believe that it truly has potential, pitch it to investors.
Right now, you don’t have proper funding and, without money, your idea can’t transform into a successful project. You can’t let your idea die. Start looking for funding or another kind of support. Don’t waste any more time and get yourself ready to present your business idea to the wealthy investors. The idea of pitching may seem scary, but you’ll be able to nail it. Let’s take a look at what you can do to deliver a good business pitch.
Use storytelling to pitch
Science has proven that the best way to capture listener’s attention and determining them to remind you is what you say. People don’t feel like they have to memorise large amounts of information in a small amount of time. And who are we to argue with science? Taking the path of storytelling is what you need to do when pitching to investors. A well-told story can attract and engage the audience.
When you tell a story, you instantly connect with people. The listeners are more receptive. In other words, they are more willing to consider your idea. The point is that you shouldn’t be wasting your time with numbers and spread sheets. No matter if you’re selling a product or a service, build a story around it. You don’t need anything dramatic. You’re not telling a fairy tale.
Replace the charming prince with a real-life character, with a genuine name and personality. It goes without saying that the character should be a loveable person that excites the curiosity of the audience. Take the listener on a journey that ends well. You could include the formulaic phrase that is found at the end of fairy tales “living happily ever after”. But it’s not necessary. The most important thing is to appeal to the sensibility and reasoning abilities of the listeners. If you manage to do that, you’ll be successful.
Make sure to choose the right audience
When you’re pitching a business idea, you have to ensure that you’re addressing the right audience. Entrepreneurs need to clearly now to whom they are presenting your idea. There are different types of investors, such as banks, angel investors, peer-to-peer lenders, venture capitalists, and personal investors. These people will finance your business at different levels.
According to the experts, it’s best to seek out angel investors. They are affluent individuals that provide capital in return for convertible debt or ownership equity. If you want to make a memorable impression, have a business plan. Angels want to know what your goals are and how you plan to achieve them. Writing a business plan may seem like something that anybody can do, when in reality it’s not.
If you’re not a skilled individual, it’s better to hire professional business plan writers. They are capable of addressing important issues and crafting a successful plan. If there are gaps in your business plan, you should be open about them. You don’t know everything and you can’t afford to betray their trust. Angel investors don’t invest in the business plan but in the businessperson. You should make sure to get along with the investors. Be polite and show them what you’re capable of.
The angels have to see that you’re fast, considerate, and efficient. You have only one chance to make a good impression. That is something to keep in mind. Do as much research as you can about the target investor, understand their needs and motivations, and make sure to explain your potential. Tailor the idea to the person you’re presenting to.
Practice your pitch
Practice is what helps you improve your approach. Many say that the business pitch isn’t an indicator for future success. This may be true, yet it’s impossible to deny that the pitch represents a significant moment for any entrepreneur. So as to have a successful presentation, you have to practice, practice, and practice.
Start practicing different parts of the speech. It doesn’t matter if you’re walking your dog or you’re in the shower; do it. When you gain enough confidence, use a real audience. Ask your friends or family to listen to your presentation. While you’re pitching the business idea, observe their reactions. Practicing provides you experience. Therefore, when you’re facing the real audience, you’ll give the impression of being confident.
Film a promotional video
Video pitches are far better than presentations with no video. As the old saying goes, a picture is worth a thousand words. Video pitches manage to stand out from the crowd. Taking into account that people are visual learners, so it shouldn’t come as a surprise that this approach is efficient. An informative video should show the way in which your product or service solves the problems of the audience. A great video pitch sells any business idea, you can be sure of that.
Think about what you want viewers to know about your product or service. And create a catching headline. The promotional video should insist on the most important benefits. It’s recommendable to stick to only 3 benefits. Investors are people and, just like everybody else, they have a limited attention span. Last but not least, use a call-to-action statement. Tell the audience what they should be doing next.
As far as the promotional film is concerned, it can be simple or complex. If you don’t want to go with a simple screen recording, then make a live production. Understand that the cost of putting together such a video can be high. Make sure that you have the necessary financial means. Check out freelance sites. And good luck!
