Your pitch is the only thing standing in the way of taking your business to the next level. You need to have a pitch that knocks the socks of the investors’ feet.
Investors have a rule-of- thumb; for every 1000 pitches presented to them, they will invest in only 100.Out of the hundred that they invest in, only 10 will be truly successful.
So how do you convince them to invest in your idea?
1. Dress to Impress
The first thing you will be judged on is how you look.This sounds unfair, but it’s a natural human tendency.So, when you walk into the room make sure you look the part of a serious entrepreneur.
2. Practice Makes Perfect
Practice your pitch again and again. Practice it in front of the mirror, in front of family, in front of friends. And then practice it some more.
3. The 10-Minute Rule
Your idea might be brilliant, but if you can’t explain it with in the given time frame it won’t mean anything. When it comes to timings, remember:
- Using slides? Don’t spend more than three minute on one slide
- “You have X minutes” – take at least five less minute
- “I’ll take only x minutes” – take at least one less minute
- “One last thing” – make sure you mean it
4. Focus is Key
In today’s extremely busy world, time is money. So when you waste investors’ time with trivialities, they will know that you will not respect their money. Be laser focused when presenting your idea, highlight the core components of your pitch.
5. Show Your Enthusiasm
As Barbara Corcoran said, “My whole focus is on trying to size up the entrepreneur. I am looking at how much wild enthusiasm do they genuinely have for their product. You can’t fake passion”
6. What Are You Selling
Don’t tell the investors what your product or service is, show them. Bring along a picture or an actual prototype of your product. Endlessly droning will get you nowhere.
7. How is Your Product/Service Unique
You need to have a product/service that breaks tradition, is out- of- the-box, miles apart from the run-of- the-mill ideas out there. If you don’t think your product can be categorized as such, don’t go to the meeting.
8. Who Will You Sell To
You have to be well-prepared for this question. Have a demographic and psycho graphic evaluation of your target audience ready. And you better have an air-tight strategy on how you’ll get the product to your audience.
9. How Will You Bring in The Money
The only reason an investor will invest in your company is because they want a return on that investment. You need to be very careful and very precise when answering the question of how your company will make them money. Choose a revenue model and plan out how it will be applied in your company.
10. The Exit Strategy
Investors want big returns on their investments, not just their money back. And they want those payoffs in a short amount of time – like five years. The answer, be it IPO, acquisition, or licensing, will be your exit strategy. Make it big.