So, you finally secured an invite to pitch your awesome business idea. Your mind has properly been working double time on how to secure best investment deal at the end of your pitch session.
Truth be told, pitching a business idea to potential investors is not the easiest of tasks. Though the long hours spent creating the perfect pitch deck matters a lot, your success actually hinges on the quality of your pitch delivery. In other words, how well investors understand the idea you are pitching to them.
Interested in keeping their loss at its barest minimum, investors carefully vet business ideas and also the ability of business owners to deliver on the promised ROI (Return on Investment). Here are 4 things to avoid while pitching because they can make your pitch delivery go really wrong:
Failing to understand investors’ interest and priority
Whereas your focus is on getting the fund you need to grow and scale your business, investors sole interest lies in how much money you can make for them. So, unless you can create a common ground between both interests, investors may likely not consider funding your business idea.
Another thing to consider in regard to investors’ interest and priority is the type of business models and ideas they show interest in. For instance, it will make no sense to pitch a product-based business to investors who are only interested in Saas (Software as a Service) business models.
What this means is that while creating your pitch deck, you need to do an in-depth research on potential investors, their investment portfolios, interests, and what they consider to be the highlight of pitch sessions.
Trying to fit a lot of things within your pitch deck
Without doubt, your head is brimming with ideas that you consider to be highlights. However, you need to decide on the most important and impressive ones because investors consider 20 minutes long enough for you to pitch your business idea.
Don’t save the best for the last.
For investors, ‘the best’ is usually how you will help them make more money. Most really wouldn’t care about how passionate you are about your business idea. Don’t go off rambling and overwhelming them to the point that they have a hard time understanding the ‘what’ of your business idea.
Keep your pitch deck simple, clean, easy to understand, and straight to the points. Save other ‘relevant’ details for subsequent meetings.
Not having enough pitch practice
When it comes to having an excellent pitch delivery, ‘practice makes perfection’ becomes more than a cliché. Your carefully researched and perfect pitch deck will clearly be of no use if you can’t communicate its essence properly.
To ensure that you do this appropriately, you need to practice pitching your business to a group of ‘stand-in investors’. These could be your friends, mentors, or even customers who have a clear understanding of what your business is all about and why you deserve to secure investors funding. It is also important that your selected stand-ins understand the process of pitch delivery and can give constructive criticisms on help secure investors’ interest.
Failing to master the art of negotiation
Your mastery of the art of negotiation is always tested every time you pitch your business. Whether or not you secure the best deal is also dependent on how well you can negotiate with potential investors who, of course, will be full aware of the value your business idea offers them. Like you, they are also interested in securing the best deals.
So, before showing up at the pitch venue ensure you create the ultimate negotiation strategy. Using the investment activities of potential investors as a guide, forecast the possible outcomes you might be served at once you are done pitching.
Get your facts and figures right, stay positive, and maintain a confident poise. Should you be offered a deal that you are quite uncertain of, don’t give responses that may create the impression that you don’t have a clear understanding of your business’s value. Rather, defer your response in such a way that investors will be keen to know your final decision.
Already identified why you didn’t why your pitch sessions have been going all wrong?
You can definitely get it right the next time. Investors are not impregnable walls. They are simply people that are interested in protecting their own interests. Get your research right, weave a good story that they can easily connect with, and of course, stay open minded.