One amongst the hardest displays to create is the entrepreneurial pitch. You’ve got a great plan for a business and you would like somebody to offer you cash to make it happen. The problem is that venture capitalists, angel investors, and even wealthy uncles are heavily predisposed against you. Why? As a result of ninety nine% of the pitches they hear sound like sure-fireplace prescriptions to lose money!
If you’re pitching investors to convey you money for a brand new venture, you should subscribe to the subsequent rules:
1. Make a case for specifically what your business is within the first thirty seconds. Several entrepreneurs waste valuable time giving loads of data, background and other info—all the while investors are left scratching their heads thinking “What will this business truly DO?”
2. Tell your audience who your customers will be. Paint a vivid, specific picture of those people.
3. Justify why your customers going to provide you there hard-earned money.
4. Make a case for who your competitors are. (And if you say you have no competitors, that’s a sure sign you’re unsophisticated and deserve no investment cash!)
5. Make a case for why you’re the ONE to make this happen.
6. Give your presentation with confidence and enthusiasm. Investors want a founder/CEO to be a chief salesperson; they need to see that you’ll convince the globe of your dream—not just them.
7. Explain what star you’ll hitch a ride to. Has Best Get or Radio Shack agreed to distribute your new product? Investors feel abundant additional comfortable knowing you’ve got an established player willing to distribute your wares.
8. Raise for a certain quantity of money. If all you are doing is raise for cash, then you’ll be able to’t complain if an investor provides you $3.25 for a cup of Starbucks coffee.
9. Tell prospects exactly what you are going to pay the money on (hint:a trip to Maui for you and your friends can not impress)
10. Dress well, act assured, and place on the air that you just don’t really want their cash, but would be willing to simply accept it if they bring about enough to the table to be a strategic partner for you. Sad however true regarding human nature, but individuals are much additional doubtless to present you cash if they feel you don’t really would like it.
Finally, build each pitch presentation serve as a focus cluster for your next presentation. When one group of investors asks you a series of questions after you pitch, write down all of those queries and build sure most of them are answered in your next pitch thus that the subsequent group doesn’t should raise them. Keep pitching and keep improving your pitch and eventually you’ll get funded.