If you are an entrepreneur trying to get a project off the ground, the prospect of raising the necessary funds can be daunting to say the least. After all it is not quite as straightforward as it used to be. Bank credit is, in many cases, a thing of the past, meaning small businesses must often seek out alternative methods to plug the gap.
And with methods such as angel financing, a whole new set of challenges arises; not least selling the business in person, to would-be angel investors. But fear not… help is at hand in the form of ten extremely useful tips for successful pitching.
1. Perfect the elevator pitch
As the name suggests, the elevator pitch is a quick, comprehensive summary of an idea that can be delivered in anything from 30 seconds to 2 minutes. And in many respects it is the entrepreneur’s calling card to any would-be investor he or she happens to meet, whether in the elevator or the world at large.
2. Prepare for success
Benjamin Franklin once said, “By failing to prepare, you are preparing to fail.” And brief as the pitching opportunity may be, the fact that it can potentially change the course of your idea forever – for better or for worse – suggests that putting in the necessary groundwork is ultimately the key to its success.
3. Master the tools of the trade
In the age of technology, it is highly likely that any pitching session will include – and also be enhanced by – visual aids, product demonstration or other multimedia elements. For smooth, hitch-free pitching and to avoid any potentially embarrassing encounters with unruly equipment, be sure to dry run your presentation in a technical sense.
4. Dress for success
Your presentation does not just extend to the pitch, although perfecting the finer details of it can sometimes be at the expense of how you actually do present yourself. Obvious as it may seem, it is surprising how many entrepreneurs forget to actually dress themselves for success. Looks do matter and will invariably colour (or discolour) the opinion of any potential investors. Forsaking the casual attire in favour of a smart, professional looking suit also means that you act and look the part.
5. Learn the maths
The mathematics of business does not necessarily come easily to every entrepreneur, which makes it doubly important to familiarize yourself with the stats. Any potential investors in your business will understandably want to discuss them in depth, so the need to know how the numbers crunch is really important. Get a thorough handle on your accounts, learn key figures by heart and prepare yourself a crib sheet for any nerve-fuelled emergency situation.
6. See the bigger picture
Besides the preparation and the pitch, developing a wider strategy for your business plan is also key to success. You may have the best and most original idea in the world, but identifying how investors could profit from it financially, even if it is just enough to repay the interest and the principal on a loan, is ultimately how you are going to get them on board.
7. Work at the relationship
Seeing the bigger picture also means recognizing that investors have a vested interest in more than just your product. But beyond the wider marketplace and its competitors, they are also investing in something much closer to home: you and your team. And given that business often operates in the longer term, working at the human side of your business – the partnerships and the rapports – is another sure-fire way of courting success.
8. Be passionate about what you do
You may personally lack the funds to get a project off the ground, but if you want investors to part with their own hard-earned cash, convincing them that you are investing passion is absolutely crucial. At the end of the day passion and commitment do not cost the entrepreneur anything at all, but their ability to open doors is invaluable.
9. Don’t take risks, just avoid them
Let’s be honest, business can be risky, but knowing what those risks are means that they can often be avoided. Forearmed is forewarned and an honest and realistic assessment of any potential risks makes particularly good business sense. The level of honesty it implies could also convince the most risk-averse investor to come on board.
10. Listen to others
While very little in business comes for free, listening to what others have to say in the form of pitch feedback – both as praise and criticism – is both free and invaluable. At the end of the day listening to others is tough; taking on board the more negative things they have to say even harder, but if you are hoping to move forward with your idea it is a skill well worth mastering.