Each day hundreds of eager enthusiastic startup founders pitch to angel investors or venture capitalists. But only a few of these pitches eventually strike a chord and transforms from just being an idea to being a reality. There are certain qualities that make a good pitch great and stand out to an investor. Before you attempt pitching to your next prospective investor ensure to employ these seven tips;
- Tell a customer story:
This is one of the most effective ways to make your pitch truly remarkable. By starting your pitch with a real customer story, you are able to describe to your audience how your product or service address or solves a real life problem in the marketplace.
Try to tell your story in as simple terms as possible, avoid the use of buzzwords and jargons that complicates the entire story and make you seem too smart. No one is interested in a smart ass. Keep your story simple and realistic.
- Follow the 10/20/30 rule:
One of the world foremost marketing expert, Guy Kawasaki, propounded the now ubiquitous 10/20/30 rule. This basically states that your presentation should not be longer than 10 slides, should last at most 20 minutes, and include text in a font no smaller than 30 points.
One of the worst presentation mistakes you can ever make is to make your presentation your primary mode of communication, rather than yourself, and not including images, videos or anything visually appealing.
- Outline your business model:
Investors are not charity organizations. Although they may wish to invest in your ideas they are highly concerned about their return on investment. Therefore, your pitch must tell your prospective investors how your idea converts into something economically viable. Basically, your business model must answer the following pertinent questions; what do you sell? To whom do you sell? How much do they pay? How do they pay?
Before you go ahead and stand in the front of a prospective investor or investors, ensure you practice sufficiently. This would involve pitching your idea to someone outside of your company and asking them to explain back to you what that think your business model is about. Also, entertain questions from them. This exercise is sure to be an eye opener, helping you to fine-tune your presentation as well as your business model.
- Talk about yourself:
It would interest you to know that investors sometimes do not invest just because of an idea, but because of the person bearing the idea. So, when you can, talk about yourself and your team’s accomplishment, particularly as it relates to your capacity to start and scale a venture. You are basically trying to tell investors that you are the right person to lead the venture.
- Reveal strategy to address competition:
After an investor has decided that he/she likes you, the other thing he would be interested in is the competition. Don’t make the error of saying you don’t have a competition, that’s a rookie mistake to make and only goes on to show that you have not thought your business idea through. Even if you are the only one producing a product or offering a service, you will still have to convince people to abandon an old system to adopt what you are offering.
- Be passionate:
When all else fail, the passion you have in your idea is what would make you successful. Investors have a keen instinct. They know how to sense it if you lack passion for what you are presenting to them. Passion is one of the most effective means of communication. Passionate people are those who truly believe in themselves and in their ideas, and they are the ones that are most likely to bring such ideas to fruition.