Whether you’re pitching to angels or venture capitalists, taking the time to craft a good pitch will serve you incredibly well. Investors aren’t going to offer you a lot of their time, they’re busy people so why should they? This means that your business pitch has to be short, sharp but still cover all of the important points that potential investors want to hear. Rambling is not permitted when pitching your small business.
In 10 simple steps, this guide breaks down what
you should include in your business pitch and why.
1. A Story
Every good pitch starts with a story. Find an interesting but fast way to hook investors in and build their interest straight away. Tailoring your story to fit an audience is definitely advised and it should talk about the issue you are trying to solve.
2. A Solution
Now you’ve got your story and your problem, you need to tell investors how you’re going to solve it. Talk about your product’s USP and how it will benefit your customers but keep it short and don’t bamboozle them with jargon.
3. Talk Success
What have you done so far to make your product successful? Now is the time to big yourself up. Give figures, facts and dates to prove how well your business is thriving and how much better it could be with their help.
4. Target Market
Show investors you’ve thought about your target market. Tell them about your total available market, your addressable market and your predicted share of the market. This will impress them and help you understand how realistic your aims are.
5. Acquiring Custom
An important but often forgotten part of business pitching. Tell potential investors how you will reach customers and how much it is likely to cost your business. Realistic and factual numbers are important here, you should also talk about how you might measure acquisition as well.
6. Talk Competition
This isn’t about beating your competition down and calling them names, it’s about differentiating your product from theirs. Tell investors what makes your product more marketable, more attractive and show them how you can relay this to potential customers.
7. Making Money
Every good pitch has to have a good revenue model. Potential investors will scrutinise this area of your pitch more than others, so make sure your product pricing is on point and again relay how desperate the market is for your goods.
You should also take the time to show what your predictions are for revenue over the next few years. It is essential to back up your numbers with cold hard facts. Investors will do their sums to make sure your calculations add up, so be honest and be realistic.
8. Team Effort
When creating your business pitch, it’s always good to spend a little time talking about your team. Let them know why your team is the right team to take this plan and, more specifically, the business forward. Big your team up but at the same time, don’t be shy about what your team is missing. Whether it is marketing people or programmers, investors are going to know your team isn’t perfect but they will want to see how you are addressing this.
9. Talk Finance
Now is the time to talk finance. Tell investors how much money you and others have invested in your company and what you need to take your business that extra mile. Give an exact figure, talk about why you need this specific amount, what you’re going to do with it and finally, what you expect to happen once you have this investment.
10. Exit Strategy
A lot of small businesses tend to leave this out of their pitches, (because they are small), but it’s not always a wise idea. If you’re asking for a lot of money, you need to provide an exit strategy so that investors know what you are going to do years down the line. Show you’ve thought carefully about an exit strategy and it will serve you very well when you come to pitch your business.