Guide to Pitching an Idea to Potential Investors

It’s such a wonderful feeling when you have a great idea or invention that you think will turn into a profitable business. However, without proper planning, entrepreneurs often fail to get the funding required to get up and running. An essential part of ensuring you get the capital you need is successfully pitching your idea to an investor. Your pitch could mean the difference between moving forward and starting back at square one. Here’s a quick guide to pitching your idea to a potential investor.

Don’t Waste Time on the Wrong Investors

Don’t try to target every investor out there and pitch to anyone who bites. In doing so, you may get funding; however, you may get it from investors who want a share of your business though they don’t share your best interests. You want an investor who believes in your vision. Therefore, do some research on your potential investors. Once you know more about them, you can design your pitch in a way that appeals to them and clearly states your goals and objectives in an effort to avoid sending mixed signals. You can even make small talk about their hobbies and use that as an opener or closer. For example, when you leave the room, close the discussion with a comment about how you discovered the investors are really big golf fanatics and hand them some golf balls with your logo on them. Or, even better, use promotional products that represent your brand.

Simplify Your Pitch

Don’t try to impress your potential investors with big words and industry jargon. If they can’t understand what you’re asking for, it will be a waste of both your time and theirs. Focus on clearly stating your business objectives and how their funding can make those objectives happen. Your proposal should be factual, concise, and to the point.

You can also consider pitching in the form of a story that tells how you got to this point. If you tell it in a captivating way, you’ll capture the attention of potential investors and make your pitch stand out from the rest. Keep the spreadsheets and complex evaluations out of the way, but have them handy in case they ask. Instead, focus on capturing their attention so they can see the opportunity you’re presenting with a bit of human element.

Establish Deadlines

Deadlines are a part of every business, and if you want to get anywhere in life, you need to hold yourself and others accountable for them. Mention a handful of goals and deadlines in your pitch to show that you are serious. This also helps the investors decide whether it is feasible for them to meet your deadline. In addition, it will also show that you are dedicated and that you have expectations that you’re serious about accomplishing. If it helps, leave them with a brief summary of your pitch and future goals along with promotional pens branded with your company’s name to help them remember you.

Explain Your Sales Record and Strategy

If you can show that you’ve already made sales, as well as the rate at which you made them, do it. This is especially important if you’ve made a significant number of sales within a small period of time. In contrast, if you haven’t been able to make a volume of sales that you’re necessarily proud of, don’t hide it, but explain why. Anticipate and be prepared for any questions. These may revolve around how you intend to maintain sales, and what you plan to do if sales stall. They’ll also likely want to know where you see the long-term future of your company, especially if they’re going to be funding it or perhaps owning a share of it.

Remember that without confidence, you won’t get anywhere. Make sure you truly believe in your brand before you pitch to investors, and be ready to fight for it. Don’t let rejections get you down. They simply mean that your project isn’t right for that specific investor. If your project has any merit and if you fundamentally believe in it, let it show. Walk into that room wearing one of your company’s custom embroidered work shirts to help them remember you and convey that your enterprise is legit. You need to confidently show that your idea has potential that can only be unlocked with their help and vision. Make them feel like the most important people in your professional life, and help them understand how their assistance can truly affect your industry for the better.