At the start of every new business, most are in need of at least one of two things: monetary support and the right connections. In order to have the support needed, you need for others to invest in you and your business. But how do you gain these investors? That is the golden question. The short answer is that you have to illustrate your passion and appropriately sell your vision of why someone should believe and invest in your business. If you can do this in 5 minutes, that’s even better! Here are some tips on how to effectively pitch your business.
- Conduct an audit of your business. This pitch is going to start with you, so make sure that you not only are passionate and believe in your business, but that you presents facts. What is your mission statement? What are your core values? Why do you want to pursue this business? If you are very clear on this, it will help you to craft a very concise pitch
- Start with the problem. What issue or problem are you solving and why should anyone care? Great businesses solve a problem in the market, so you want to be clear on why your company should exist.
- The Solution. Next, you should present the solution, you’re business. Explain why your company is valuable and potentially very profitable. If presenting in a powerpoint presentation, be sure to include great visuals of your product/service.
- Know the facts. It’s important that potential investors see that you know your stuff and have done your due diligence. Present facts on current market trends and opportunities, your competitors, and why your business would succeed over the competition. Present your SWOT analysis (strengths, weaknesses, opportunities, and threats) and how your company has the potential to succeed with real projections.
- The Dream Team. Investors want to see that there’s a strong team in place to execute your vision. If you don’t have a team on the ground, start preparing and identifying who should be on the team and present them. This is also where you sell yourself. Let’s face it, people really invest in people.
- The Ask. Now that you’ve summarized why someone should invest in you, you need to be very specific on the ask. You can’t just throw out any number. Present an actual budget and projections of your expenses and profits. If you have raised any money on your own, great! That illustrates that others are willing to invest in you which makes your business more attractive. Also be very realistic.
Check out this video for an illustration of a good pitch: