One of the most challenging presentations is the entrepreneurial pitch. You have a great business idea and want someone to invest in it. The problem is that venture capitalists, angel investors, and even your rich uncle are predisposed against you. Why?
Because 99% of the pitches they hear sound like surefire ways to lose money.
If you are pitching to investors for money to start a new venture, keep the following rules in mind to ensure your pitch is successful:
Explain exactly what your business is within the first thirty seconds. Many entrepreneurs waste valuable time providing loads of data, background information, and other details, while investors are left wondering, "What does this business actually do?"
Tell your audience who your customers will be. Paint a vivid, specific picture of these people.
Explain why your customers are going to give you their hard-earned money.
Describe who your competitors are. (If you claim that you have no competitors, it suggests that you are unsophisticated and unworthy of investment!)
Explain why you are the one to make this happen.
Give your presentation with confidence and enthusiasm. Investors want a founder/CEO who can sell; they want to see that you can convince the world of your vision—not just them.
Describe the star to which you can hitch a ride. Has "Best Buy" agreed to distribute your new product? Investors will feel much more comfortable knowing that an established company is willing to distribute your products.
Ask for a specific amount of money. If you only ask for money, then you can't complain if an investor gives you $3.25 for a cup of Starbucks coffee.
Tell prospects exactly how you will spend the money (hint: a trip to Maui for you and your friends will not impress).
Dress well, act confidently, and give the impression that you don't really need their money but would accept it if they could offer you a valuable partnership. It's sad but true, but people are much more likely to give you money if they feel you don't really need it.
Finally, treat each pitch as a focus group for your next one.
If a group of investors asks you questions after your pitch, write down the questions and make sure to answer most of them in your next pitch, so the next group doesn't have to ask them. Keep pitching, keep improving your presentation, and you may eventually get funded.
You can believe me when I say that all successful entrepreneurs needed to give pitches to find investors. Don't think that people like Bill Gates, Steve Jobs, or Elon Musk are exceptions to these kinds of investor-finding sessions. You'd be surprised how many highly successful people could realize projects without strong investors.
