How to Ace that Pitch
Author: Gloria Mopotu
When you are a startup looking to raise money for your business, pitching to investors is a crucial part of the process. Whether in front of small investors or large VC firms, each pitch should highlight why your startup is solving a problem and that your startup has a unique method to address that particular problem. If your pitch lacks to capture the interest of your investors, then you will find yourself having to go back and do more homework which could waste time if you don’t have the right formulas of how to deliver the perfect pitch.
To convince investors that your startup is worth funding, you need to give a clear and apprehensible pitch that essentially tells an intriguing story about your startup. Pitching about your startup is a form of storytelling through the method of presentation and therefore one will need to create a concise pitch deck that will carry the message of your story.
It is not every day where you get to meet a VC or an angel investor so when you get the opportunity to show-off your business through pitching, you should value your time and give the best impression by taking into account some of these key tips of giving that perfect pitch presentation:
The Problem and Solution
First things first; What investors want to hear is the problem you are trying to address and the solution to solving this problem. Highlighting the pain point is one of the most aspects of pitching and presenting a credible solution, which doesn’t already exist is just as important. This will immediately grab the attention of investors!
A lot of people tend to think that this part of the presentation should be in the end but rather, it should be in the beginning to let investors know from the start who is a part of the company and their role. Mentioning the members of your team as well as the skills and sets that they bring to the table is crucial and these are things that investors want to know.
When you start a business you need to determine whether you are entering a pre-existing space or creating a brand new product or space. To measure your market size and the amount of percentage you own, you can either determine the total market and estimate your potential share of it or you can figure out where comparable products are sold, how many of them are sold at what percentage of those you take.
Problem Solving Technique
Always let investors know that the goal of your company is to address a problem or to make something that always exists even better with a new fresh idea.
The best way to prove that your business is credible is through examples and case studies. This will prove that you have done additional homework by researching and telling your customers how you plan to solve the problem.
In the world of business, entrepreneurs ate often encouraged to “make your vision so clear that your fears become irrelevant”. Therefore it is important to state clearly and quantify who the beneficiaries of your business are.
Advantage on Competitors
Despite other options that people can choose from you have to persuade them to buy your product. The better way to convince your investors that your product surpasses other products alike is to have future consumers say for themselves why they might be keen on purchasing your product.
Without marketing, sales suffer. You need to explain the methods that you will take to reach people including, advertising, public relations, and more, and how these particular methods will generate sales.
Explain your pricing, your costs, and why you are going to be especially profitable. This will give investors a better way of deciding whether it is worth investing in your business.
Establish a financial plan after the vision and the objectives of the business has been outlined. This financial plan should include all the activities, resources, equipment and materials needed to achieve these objectives.
Clearly indicate the measures that drive revenues, expenses and growth.
Explain how you plan to fund your business and who are already funded your business (if any).
Communicating your milestones allows investors to understand your ability to execute and this gets investors interested. Let them know how far you’ve come since the original concept of your business and explain the steps you plan to take that will take your company to the next level.
Call To Action (CTA)
Always remember to end your pitch presentation by highlighting the main purpose of the presentation. It is the last opportunity that you have to urge the audience to act on your ideas and persuade investors to do the same.
Preparing to give the pitch of a lifetime can be daunting and not the easiest thing to do. But you should never underestimate the power of giving a really pitch presentation as this will give potential investors the opportunity to fully engage in your business and understand exactly what you are trying to achieve and there is no better way to do this than explaining every detail of your business clearly using examples such as case studies and infographics. In this way, you will prove to investors that you’ve done your homework and make your business believable. Here are further pitch guides explained in greater detail by Startup Secret and Garage Technology Ventures.