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How to Pitch an Investor

How to Pitch an Investor

If you are an entrepreneur, you need to know how to set up your business. Even if you don’t plan to seek financing, having a solid elevator pitch ensures that you know your business both indoors and outdoors. Which is useful if or when you finally decide to pursue an investment.

How to make a pitch for investors

Creating a successful pitch begins with a thorough business plan. It is up to you to find out what makes your business valuable and what is worth investing in. You may have created 5 pages of financial history and an in-depth analysis of how you compete against the competition in multiple industries, but you can’t cover it all.
Because first of all, when you pay attention to angel investors and venture capitalists, you often only have about 10 minutes to make your case.

Create a presentation

First, take your time to put together the pitch terrace. The goal is to create a platform that is easy to work with and that excites investors about your business.
With that in mind, you should have a short version that you can talk to in 10 minutes, as well as an extended version that includes everything you want to give potential investors access.

Practice your tone

You have to practice your tone. Because you can’t quickly talk about every aspect of your business, all the other main points on this list are pretty much useless. Too many entrepreneurs think they can explain their value quickly and concisely just by knowing their business. And it is enough to lean on the terrace of a deadly pitch with eye-catching images. So they go to field meetings unprepared.
Instead of being able to say, “I only need 10 minutes of your time” and only take 10 minutes, you will soon be wandering 20 minutes with just three slides. Time to practice, simplify your messages, and keep only the elements to add to your business. Leave everything else on the cutting room floor.

Summarize the problem with a story.

Start your speech with a solid story. You must address the problem you are solving in the marketplace. This will put your audience right outside the door. And if you did any testing, please try to include the actual data here. If you can connect your story with your audience, in this case, with the investor, even better. What industries have they invested in before? What were the weaknesses of your previous business endeavors?

Your solution

Share what is unique about your product and how it will solve the problem you shared on the previous slide. Be brief, concise, and easy for the investor to explain to others. Avoid using buzzwords if your investors don’t know your industry well.

Your target market

Don’t say that everyone in the world could be your target market, even if it might one day be real. Be realistic about where you are building your product and divide your market into TAM, USA, and SOM. Not only will this impress your audience, but it will also help you think more strategically about your implementation plan.
If you can, try to develop an ideal customer user or staff while talking about your target market. This can help investors think about the potential customer base and shows that you have thought about who your company will serve.

Your achievements: early draw and milestones

At the beginning of the presentation, you want to build some credibility. Take your time to share the relevant giveaway you have run.
This is your chance to honk your own horn. Convince investors of what you have achieved so far (sales, contracts, hiring of keys, product launches, etc.). You probably mentioned snippets of this at the beginning, but this is the point where you create a complete overview of your business.

Your team

Investors invest in people first, so be sure to share details about your rock star team and why they are the right people to lead this company.
Also, be sure to share any skill sets that may be missing from your team. Most startup teams lack a number of key strengths, be it marketing, management experience, programmers, sales, operations, financial management, etc.

Your financial projections

Show how much you are projecting in revenue (per product) over the next three to five years. You need to back up your numbers by sharing your assumptions. You’ll see investors using their smartphone calculators to make sure their numbers make sense, so give them the information they need to make sure their calculations are accurate.
If your financial chart shows “hockey stick growth,” be sure to explain what will happen to cause these recurring points. Now it can be incredibly easy to spend a lot of time explaining finances, but keep in mind that you need to talk to them quickly.

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