As an entrepreneur, you have to come up with a viable business idea and then demonstrate why other people (investors) should put their money in it. This is usually easier said than done. Follow the tips below to prepare a winning pitch to potential investors.
There are many types of investors out there. Each group of investors focuses on businesses that meet a certain criteria. For instance some investors do not fund businesses below a certain size; while others focus on startups or continuing businesses. To avoid wasting your time and suffering the disappointment of being denied funding, make sure that you focus on their right investors. It is best to find out more about the type of entities an investor focuses on before scheduling a meeting.
Make it a Story
As much as investors want to hear about your new project and how you plan on getting started, they also want to learn more about how it will perform in future. You need to have a story that the investors can use to see the potential growth they are investing in. Remember that this is your project and you need to communicate your ambition with regard to its future growth.
If your business focuses on a specific market niche, it is important that you avoid using technical jargon that may confuse them. Some entrepreneurs include a lot of industry specific terms in their presentations due to the fact that they have become used to the language. Remember that investors may not be clear on such terms, and using them means that you risk losing their attention as well.
Have a Brief
Entrepreneurs usually have limited time when it comes to making presentation to investors. It is therefore important that you come up with a short brief which can be used to provide an overview of the whole idea to investors. This brief introduction should be under a minute long. Once the investors understand the gist of the presentation they will have an easier time following and understanding the details.
As an entrepreneur, the thought of getting out of the business you are seeking funding for may not cross your mind. However, investors usually look to move on to other opportunities in a few years. It is important that you provide them with an exit strategy that promises to get their investment back having been compounded.