Most business owners don’t realize the importance of having a pitch and rehearsing it when they are seeking funding for the company. You don’t want to approach an investor and make it seem as if you don’t know what you are talking about. Once you have rehearsed that pitch, it will be like a breeze when delivering it to an investor. It won’t seem as if you are rambling on and catching for straws. You will be taken seriously.
It is frustrating for an investor to hear a business owner ask for ten minutes to deliver a pitch and only to find them going on and on for half an hour. You will lose the interest of any investor by doing so. You should have your business plan in hand, just in case the investor asks for it and more importantly, so that they can read it at their leisure once you have completed your pitch. You want to make sure that a powerful pitch is delivered and at the end, the investor should be asking for more information from you in the form of a business plan. In preparing your pitch for business funding, there are some essentials to consider. Let’s take a closer look.
Your Story Told
Your pitch should always tell a story and the story must be compelling. That means you will have to engage the investor as soon as you start speaking. Don’t wait until you are in the middle of your story to come to life. Be animated, passionate and excited about the prospect of having a business and receiving funding to make it more successful. With your story, you should be able to address some problems and the solution; altogether.
You should know the unique value of your product and discuss the solution or solutions it will provide. This segment of your pitch should be brief, simple and concise so that the investor will be able to provide an explanation to others. Stay away from industry buzzwords. Use them only if you know that the investor has some familiarity with your industry.
Build your credibility in the early stages of your presentation. Talk about your successes in business, not necessarily your immediate business venture. You now have the chance to toot your own horn. Try to give a good impression to the investors of your accomplishments so far. This could include strategic business moves, secured contracts, sales figures and various product launches, if any.
Not all consumers will buy your product or service. You must be marketing to a specific audience. These are your target audience and they usually exist in a specific target market. You should know what that is. Give a realistic answer when asked about your target audience. A target audience should be taken from specific demographics, age group, buying tendencies and location.
One significant aspect of your pitch is to know your competition. Who are they? What sets you apart from the competition? How is your product and service different? How much more experienced are you in that field or industry? Your pitch should answer all of those questions.