When first starting a business, it may be necessary to pitch to investors to get funding. You don’t always get a long time to pitch your concept so a short, powerful pitch should be prepared. When pitching a business, you should always have copies of your executive summary or whole business plan to share with investors. For a successful pitch, there are some things that should be kept in mind.
Relate to the Audience
You should begin your pitch with a story that is engaging and compelling. Your story should address the purpose of your product or service in the marketplace. If you can, try to relate your story to the audience listening to your pitch.
Purpose of the Product
Your pitch should include information about why your product or service is unique and how it will help potential customers. Keep the information about your product short and concise so that investors are able to easily explain the product or service to others.
It will help to build some credibility if you take the time to share your accomplishments with potential investors. Keep this part of the pitch short but include information such as product launches, sales, and important hires.
Identify the Target Market
When delivering a pitch, you don’t want to claim that your product or service is for everyone. It is important to be able to identify the target market that you are creating your product or service for.
When delivering a pitch, people often leave out how they will attract customers. You should be able to tell investors how you will reach customers, costs, and how you will measure success.
One of the most important parts of any business pitch, and the thing investors care most about is how you will make money. You should include specific information about the pricing of your products. Investors will also want to see what your projected revenue is over a period of three to five years. You need to be able to provide this information and back up your numbers.
What You Need
Another important part of your pitch is clearly explaining what you need from investors. At this point you should share information about how much money has already been invested into the business as well as how much you are seeking in investment funds.
Investors constantly hear business pitches and are often very particular about who they will invest with. You should take the time to plan and have a well thought out pitch that provides concise information to potential investors. Knowing how to pitch your business can greatly increase your chances of obtaining funding.