What is an investor looking for in your pitch?
When deciding how to pitch your business, you must first answer this question. They need to be satisfied that your firm will attract and maintain clients, whether it’s a bank manager, an investor, or a family member. Facts, not fantasy, should be used to instill trust. Any investor seeks the lowest risk with the best return as quickly as feasible, while bankers have a far longer-term perspective than angel investors.
Thank you for reading this post, don't forget to subscribe!Bankers seek for demonstrated business management skills in a presentation. They want to know that five years from now when your firm is substantially larger, you can still be at the helm and successfully lead it forward. A company plan that shows some initial cash flow from revenues and low costs has a higher chance of attracting investors than one that projects enormous future profits.
Investors are usually searching for one of the three qualities listed below to be truly exceptional.
Ideally, all three are…
- The group. It will be critical to demonstrate that you have the correct team in place with the necessary experience and skills.
- The concept. They’ll undoubtedly be interested in investing if your idea has a truly global impact (think curing disease, the next WhatsApp, Amazon, or technology that will alter the way we live).
- The market. Is the market huge? Or is it niche-buy that’s very profitable – and so on?
These factors must be taken into account while planning and tailoring your presentation.
Do your homework before you pitch your business
So, getting back on track, you’re still unsure how to pitch your company? There are many different types of investors – angel investors, MicroVCs, and VCs, for example – and each has its own set of rules that must be followed. Make sure you’re targeting the right person or group – if an investor typically invests in enterprise products for the United States, you’d better be targeting them!
There are some ways to find an investor that suits your product or market.
- Do they mention on their website how they like to be pitched?
- Try reaching out to existing invested companies for advice.
However, before you consider pitching, make the following:
- An executive synopsis of your company’s operations.
- Profit and loss, cost of acquisition, lifetime value, and cash burn are all included in a business strategy. If you don’t understand what these terms signify, you’ll need to do some more research before pitching for funding.
- When relevant, investigate and do the paperwork for EIS and SEIS tax breaks – this is incredibly important to investors, as it makes their contribution tax-efficient.
- Understand how to give an assessment of your company in exchange for a certain amount of shares. Don’t be greedy; it will lead to troubles later.
Next step: practice how to pitch your business…
- Plan your presentation
- Decide your Presentation structure
- Be like a storyteller
- Plan your content
- Work on presentation delivery
- Manage presentation nerves
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