Refine Your Pitch

If you’re looking to raise capital, you may be spending time in front of investors who can write you big checks. Here are some guidelines for making your pitches more effective and appealing to potential backers.

Keep Your Introduction Short

Familiarize yourself with the track record of your potential investors to see what size and type of ventures they typically fund. Having that insight can help you to tailor your pitch, and it shows investors that you’re prepared.

Schedule Out Every Day

If it takes you more than a minute to sum up your idea, your abilities, and the strengths of your business plan, you’ll hinder your quest for investment funds. This is because many opportunities to present your full pitch develop only after you give your “elevator speech” during casual conversations about other things.

Hone and vet every single word of your introductory pitch, and then memorize it so thoroughly that you can deliver it without appearing nervous or hurried. This solid, short introduction will help you secure opportunities to pitch your ideas at greater length and depth.

Tell The Whole Story In 15 Minutes

Your pitch should spotlight what your business has to offer that no one else provides.

Focus on covering the essentials of your business idea (see below) with a presentation that lasts no more than 15 minutes. If you generate enough interest, you could spend the next five to 15 minutes fielding questions. In short, you may get more time, but don’t plan on it.

Pack Your Business Plan With Compelling Facts

Investors often express interest before — but write checks only after — reviewing and investigating your detailed business plan.

Your Business Plan Should Provide:

An explanation of the problem your business will address
The size of the market your business aims to tap
Realistic projections for your costs and revenues
Why and how your business can beat its competition
The value of your business’s “human capital,” including qualifications and experience

Clarify An Investor’s Exit Strategy

To win potential investors’ hearts, minds, and wallets, plan a way for them to cash out, such as through large-scale licensing agreements or a strategic sale. If there’s no way for investors to get out, they may not invest.

Work To Build Relationships vs. Pitch To Strangers

Developing a relationship with investors so they have confidence in your abilities is generally how investors get comfortable with providing funding.

In fact, many investors prefer to look for opportunities to fund managers or management teams they already have confidence in. Rather than pitch to strangers, work your networks: relatives, social media, and business relationships are all places to look to connect with compatible investors.

Let Investors Bring Up Valuation

Placing a valuation on businesses is part of the investor’s speciality.

The best relationships with potential investors develop through compatible personalities, shared goals and interests, and other deeper values — not simply through money. Investors are usually very clear about when they’re interested in discussing how much your business is worth.

Learn From Criticism And Rejection

Pitching your business idea carries a potential for pain if experienced investors challenge everything from your business model to your technology platform — and then decline to invest.

You can, however, you can use their opinions to shed new light on your thoughts, analysis, and overall business plan.