One of the hardest pitches to make is to investors, when you have a great idea for a business, and you want someone to give you money to make it happen. The biggest problem is that venture capitalists and angel investors are naturally skeptical. Why? Because 95% plus of the pitches they hear sound like sure-fire ways to lose money.
If you are pitching investors to invest money in your new venture, you should know and use the following 11 venture capital pitch tips:
1. Explain exactly what your business does in the first 30 seconds. Many entrepreneurs waste valuable time talking about data, giving background information, and other information, while the investors are left scratching their heads thinking- “What does this business actually do to earn money?”
2. Tell the investors about who your customers will be. Paint a vivid, specific picture of these people.
3. Explain why your customers are going to want to buy from you.
4. Explain who your competitors, and their strengths and weaknesses.
5. Explain in detail what makes your company unique and why you believe that you have a competitive advantage.
6. Give your presentation with confidence and enthusiasm. Investors want to invest in a company and a leader/leaders, who can not only convince them that they should believe in their company, but who can also convince others to believe in their company.
7. Explain what star you can hitch a ride with. Has Best Buy or Radio Shack agreed to distribute/sell your new product? Investors will feel much more comfortable knowing that you have an established company who is willing to do business with you.
8. Ask for a specific amount of money. If all you do is ask for money, then you can’t complain if investors don’t give you the amount of money that you were looking for.
9. Tell the investors exactly what you are going to use the money on.
10. Dress for success. Look and act professional. Show the investors that you look and act the part of someone who is worthy of their investment capital.
11. Make each pitch presentation serve as a focus group for the next presentation. When one group of investors asks you a series of questions after you pitch, write down the questions that they had, 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 improving your pitch, and eventually, if your business/ business idea shows potential, you will likely get funded.
“The words we say, determine the price we are paid.” Michael “MJ The Terrible” Johnson – Founder and Owner – Masters of Money, LLC.
The Ultimate Persuasion Technique – https://www.mastersofmoney.com/theultimatepersuasiontechnique/