Are you planning on pitching investors? We know that this is very important for you as an entrepreneur. You know your startup deserves funding from investors. The best way to convince investors that your startup is worth a shot is through a successful pitch. We know that every startup story is different. But there are some common basics that each pitch deck needs to include. And there are certain basic don’ts too. So here are the do’s and don’ts of pitching to help you win over the investors.
Do’s of pitching your startup
1. Tell a story
Tell a story that will captivate the audience. Include an interesting personal story to pique the interest of the investors or ask a question that everyone is thinking about. Your story should communicate the importance of what you do, why you do it, and why anyone should care. They will be interested in learning more.
2. Know your target audience
Investigate your target audience for a good pitch. Make the most of it by conducting research on the investors to whom you are pitching and adapting your strategy accordingly.
3. Keep it simple
Make sure to keep your pitch simple, short, and absolutely to the point. Giving too much unnecessary information is never a good idea. You may end up confusing and overwhelming the audience. Concentrate on the relationship between problem and solution, competitive advantage, and team.
4. Have data to back up your claims
Everything you say must be backed up by numbers or data. Add testimonials, research data, surveys, statistics, or anything else that will help you prove the product’s viability.
5. Do demonstrate your competence
As a CEO, you must demonstrate that you have the necessary experience, industry knowledge, business skills, and technical know-how to turn the idea into a success story.
6. Do brag about your team
Investors are interested in both the idea and the people who put it together. Highlight your team’s strengths and present a well-balanced educational and professional mix.
7. Do have a plan
Talk about your upcoming goals and when you plan to achieve them. Provide a timeframe with milestones and a clear vision of the future of your company. Plus, have a clear answer ready for when they ask how you’ll spend the capital you’re looking to raise.
8. Have a big picture in mind
It is critical to have a bold mission for where you want to take your startup, especially if you want to secure venture capital, and most first-time entrepreneurs tend to think too small.
9. Conduct your research
Make sure you’ve done your homework before presenting your pitch. This includes researching the investors you intend to present to and ensuring that they are a good fit for your company.
Do some research on the industry you’re pitching in, as well as any competitors you may have. This will assist you in developing a more informed and compelling pitch.
10. Be enthusiastic
It is critical to be confident in your delivery when pitching your startup. Investors want to see that you believe in your pitch and are enthusiastic about it. Make certain that your voice remains steady and that your words are clear and concise. You want to sound like you know what you’re talking about and are enthusiastic about your company.
11. Concentrate on the advantages
Focus on the benefits of investing in your startup rather than the features when crafting your pitch. Investors want to know how much money they can expect to make if they invest in your company. Include any potential revenue streams, cost savings, and other benefits that investing in your business can provide.
12. Be ready to think on your feet
Be prepared to be flexible with the questions and requests of investors when presenting your pitch. They may require more information or clarification on specific aspects of your business plan.
Prepare to answer their questions and provide any additional information they require. Additionally, try to be open to feedback and suggestions from investors, as this can help you refine and improve your pitch.
Don’ts of pitching your startup
1. Don’t spend less time on the obvious problems
Save time by not explaining a problem that is immediately apparent or understandable. Instead, specifically state the need before introducing the solution, which is the most crucial component of the pitch.
2. Don’t fully rely on the slides
Many people believe that the presentation’s most crucial component is the set of slides they use to pitch their startup. This isn’t always the case, though. Slides should not be used as the main source of information for your pitch, even though they can help give it structure and specificity. Instead, you ought to use them to strengthen your arguments and supplement what you say.
3. Don’t overlook rival businesses
The more you understand your market, the better. It will be easier to explain why your service, product, or idea is superior if you make a clear distinction from your rivals.
Avoid getting too technical or including too many numbers that the audience might find boring or unrelated. Instead, be brief and direct and make a connection between your data and statistics and the benefits your business idea provides.
4. Don’t oversell it
It might be premature to present it as a game-changer. The likelihood of success increases as the pitch becomes more realistic. Overstating the advantages of your product could give the impression that it is a pipe dream.
5. Don’t be afraid to ask for money
Use reasonable amounts that correspond to your startup’s requirements. If you don’t absolutely need it, don’t ask for a really large number. Don’t ask for too little either, as this could be taken as a lack of understanding of your industry and market. Additionally, if you raise less money, you might run out of funds too quickly and have to start fundraising again soon.
6. Don’t forget about important risks
Identify the main risks that your company will experience. A clear strategy for handling the risks that have been identified upfront gives the impression that you are ready to face the challenges ahead.
7. Don’t give into your nerves
It’s quite natural to feel nervous about pitching your idea to investors. You may feel as if you don’t have all the answers. However, it’s important to not lose your nerve. Remember that it’s ok that you don’t have all the answers because starting a business is a long experience.
Only by experiencing it can you come up with some solutions. For everything else, you can always consult advisors.
8. Don’t forget to follow up
Following up after your presentation is one of the most crucial components of pitching a startup. Investors might have further inquiries or require more details regarding specific sections of your business plan.
After your presentation, make sure to get in touch with them to follow up and address any queries or requests for clarification. This will demonstrate to them your commitment to the success of your startup and your seriousness about it.
There you have it! Through this post, you got to learn the do’s and don’ts of pitching. Now you are fully ready to pitch your startup to investors. Make sure to include the dos and eliminate the don’ts. As an entrepreneur, this is a chance you have to take to grow your business. With the tips you learned today, you will be able to impress yourself and the investors.