2017-01-04 11:31:00Advice & TipsEnglishhttps://quickbooks.intuit.com/uk/resources/archive/five-tips-for-a-killer-business-pitch/Five Tips for a Killer Business Pitch

Five Tips for a Killer Business Pitch

2 min read

Fundraising can be one of the most time consuming activities a startup CEO goes through and figuring out how to stand out from the noise of pitches is an essential first step. You can have the best product or business plan, but if you don’t focus your fundraising approach, then it can all count for nothing.

Here are five quick tips that will give you a better chance for success in getting noticed by potential investors:

#1: Research Your Target Investor before You Pitch

All investors have a focus, stage and thesis that drive their decisions. Too often, entrepreneurs pitch to investors who don’t invest in their type of business, industry or venture stage. That wastes a lot of time, for everyone involved. Instead of applying the “spray and pray” approach to your investment pitches, stand out from the crowd by researching both the firms and people you are going to pitch. Find trusted contacts in your network who are connected to your target investors and get a warm intro that shows you have done your homework.

#2: Start With a Tailored Elevator Pitch

An elevator pitch is exactly what it sounds like: a pitch specifically tailored to be made while riding a lift. It comes from the old American idea that you can throw a distilled idea at a potential backer you just happen to be sharing lift-space with and, provided it sizzles, get them onboard before they reach their floor.

It’s a concept that’s still used (in more-formal scenarios) today. A crisp 60-second elevator pitch can make or break your connection with a potential investor. Keep it simple: explain the problem, how you are solving it, and why this is important right now. To really stand out, incorporate your investor research to tailor your pitch to show you not only know who you are talking to, but why they are the perfect fit to invest in your opportunity.

#3: Tell a Concise Visual Story or Show Your Product

Never send a business plan or deck blindly to investors. A visual one-page executive summary or link to a specially-crafted page on LinkedIn or flickr should be enough to give a succinct overview to a target investor. Most investment decks shouldn’t be more than 10 visual slides that outline the opportunity and get the investor excited about diving deeper in the business. Better yet, nothing makes you stand out more than if an investor can see your product or solution in person and in action.

#4: Highlight Your Team & Passion

Early stage investors fund people not companies. Almost all early investment decisions are not about your product or market. Make sure you highlight why you are the right team to pursue this opportunity and why you are so passionate about it.

#5: Always End With an Ask & Next Steps

Remember that the purpose of the business pitch is to get a follow-up meeting, not to close a deal on the spot. Start by outlining what you want and don’t be afraid to say a specific funding amount by a target date. Always communicate a path to the next action step, which could be getting the potential investor committing to the next meeting or trying your product.

Follow these five tips when approaching investors and you’ll have a much greater chance at standing out from the crowd and making a winning pitch.

 

Information may be abridged and therefore incomplete. This document/information does not constitute, and should not be considered a substitute for, legal or financial advice. Each financial situation is different, the advice provided is intended to be general. Please contact your financial or legal advisors for information specific to your situation.

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