So you want to start a business and need help funding it? Let me help. After you decide on your business concept, if you don't have the money to get your business off the ground, you will need to pitch your idea to potential investors. This may seem like an unnerving task but don't worry! I have five tips to share on how to successfully pitch your business idea to your potential investors.
1. You need to be knowledgeable
With your business idea in mind, it's time to sit down and learn. You need a thorough understanding of the industry you want to be part of. If you don't know what you're talking about, no one will want to invest in your idea. You need to become an expert in the subject and be confident in what you are pitching.
2. Describe your product and services
Try not to focus on the idea of your business too much. Many people who are starting a business get so wrapped up in the idea of the business that they fail to talk about the product and services the business will provide. Take time to give your investors this information at the beginning of your presentation and don't linger too much on the subject. Investors are likely thinking about how they will profit from investing in your product and that's what you want to focus on to get them to invest with you.
3. Discuss how you intend to attract customers
You need a good strategy to attract customers. Regardless of how good your business idea is, investors won't support you if you don't have a compelling way of making your business desirable to the public. No custumers means no profits and if your business doesn't seem profitable to your investors, you've wasted your time and your investors' time during this pitch. Come up with a marketing strategy for your product and sell it to your investors. If they want your product they're more likely to invest in it. This business idea is your passion, but for investors it's about how they'll benefit from your idea. Keep that in mind when creating your pitch.
4. Prepare a compelling visual presentation
Humans are visual creatures. So don't just tell your investors what your business is or how they'll profit from it, show them. There are many tools to create a visual aid to go with your pitch. You could use a PowerPoint presentation or an online platform like Prezi. Show them your profit projections with charts and graphs and create your logo. Make it interesting and professional, but also have fun with it. The last thing you want to do while pitching your business is bore your potential investor.
5. Manage your time well
You should not spend too much time pitching your idea. Thirty minutes should be more than enough time for the pitch. Before asking for a meeting with potential investors, condense your information to fit in that time frame; be brief, but comprehensive. You also need to practice your pitch and time yourself. The goal is to reach a point where you are comfortable and don't seem rushed to get the information out.
If you've piqued the investors' interest enough for them to want more after you've finished your pitch, then you have successfully pitched your business. Don't blow this opportunity by not knowing how to answer the potential investors' questions. We've come full circle because this point is tied to the first thing I mentioned: you need to be knowledgeable. You need to have all the information and you need to have all the answers. If you've become obsessed with this business idea after learning everything about the industry, you will be fine. You will get someone to invest in your business.