There is so much work that goes into the process of securing funding from an investor. This involves writing a business plan and pitch deck that is convincing enough to communicate every important part of your business either as a startup trying to get into the game or an established business owner planning on expanding your business.
The part where most everyone will want to avoid is going against potential investors to pitch this idea and convince them why they should invest their money into your business.
Here are few tips you can follow that will help to prepare you ahead before presenting your business idea before investor(s).
- WHAT SOCIAL PROBLEM ARE YOU SOLVING?
The importance of any business idea should be its ability to solve a problem. As a business owner or an entrepreneur you need to be able to define a problem your business will be providing a solution to when pitching your idea to a potential investor. This is why you must have addressed this through the market research explained in your plan and this can also be backed up by surveys and questionnaires. It will be difficult to engage a potential investor or get the funding you need if you cannot show a selfless desire to provide a solution to a problem and much more be convincing about it. This is a step in the right direction in convincing the potential investors to see a bigger picture of the purpose your business will serve and how they can be a part of it.
- EXPLAIN YOUR IDEA WITH A STORY
The act of explaining your business idea and what it entails in form of a story can provide a thin line in determining the final decision a potential investor will make in funding your business or not. This is because, storytelling is a very simple way for anyone listening to digest the information you are providing (especially if your idea is one that is hard to sell); The ability of your story to project your information to emotions makes it easy to plant your ideas and also paint a picture in the mind of your listener(s).
It is important to get your facts and figures right when presenting your pitch, but be more convincing in your story than what you are selling, because if your facts and figures speak for themselves, it becomes easier to connect with your potential investors what the purpose of your business is.
- PRACTICE MAKES PERFECT
Perfecting your pitch before you go before potential investors cannot be overemphasized. There is nothing that prepares you better than a mock presentation. This is best conducted with at least someone there to present to and give an honest opinion. The more people you can present to, the better, just to get comfortable with shaking off the nerves of facing your potential investors, so as much as you present before family and friends, you can also choose a non-familiar audience to present to as many times as possible if you are the type that get nervous easily.
Telling your “story” as many times as possible will not only help you get over nerves but also help in learning the parts of your presentation you might need to improve on. While perfecting your pitch, you need to understand one important thing – how well your words flow with your body language.
Perfecting a pitch without any reasonable doubt shouldn’t only be about how well you can recite your presentation word for word but also your overall communication skills. Give your audience enough time to process every point you make by pausing calculatedly, this will also allow you moments to gather your thoughts before you move on to the next point.
- BE READY FOR ANYTHING AND EVERYTHING
After you must have gone through all the steps outlined above, there is one thing you need to have at the back of your mind – your presentation might not happen in the exact way you pictured it in your head.
It is important for you to understand that there are a hundred and one other ways your presentation can happen and you need to be prepared for that. Investors might cut in a few times during your presentation; you might not have as much time as you had hoped for, just to name a few objections. Therefore, set realistic goals and also try to put yourself in the position of the audience, what your reactions will be towards what is presented and why you will want to invest in it. When you have a clear understanding of your business, this includes both the advantages and disadvantages, it helps you to face the reality of what you can expect from your presentation and be confident about it.
