One of the hardest presentations to make is the Entrepreneurial Pitch. You have a great idea for a business, and you want someone to give you money to make it happen; the problem is venture capitalists, angel investors, and even rich uncles are heavily predisposed against you. Why? Because 99% of the pitches they hear sound like prescriptions to lose money!
Pitch Decks are not that easy to design, especially if you present to investors who see hundreds of Pitch Decks every year! Moreover, delivering a slam dunk Entrepreneurial Pitch is extremely difficult. Nevertheless, if you want money for your business idea, you will have to pitch it. The level of rigour needed and thoughtful planning that goes into just how to communicate your business idea in convincing employees, co-founders, advisors, customers, and yourself can never be understated.
Your Investor Pitch Deck presentation can be one of the most daunting things you have to endure as an entrepreneur. The pitch deck structure and presentation is critically important. Investors are much better at negotiations than you are; after all, this is what they do, and they do it daily. You, on the other hand, rarely do it. When you approach potential investors to invest in your new company, you should avoid certain expressions. They are traps that make you look weak or dig a hole so deep that you’ll have difficulty finding the light to exit.
Knowing what not to say during your Investor Pitch is even more important than knowing what to say.
If you are pitching investors to give you money for a new venture, you should subscribe to the following rules:
The Successful Entrepreneurial Pitch
1.) Explain exactly what your business is within the first thirty seconds. Many entrepreneurs waste valuable time giving loads of data, background, and other info — all the while investors are left scratching their heads thinking, “What does this business actually DO?”
2.) Tell your audience who your customers will be. Paint a vivid, specific picture of these people.
3.) Explain why your customers will give you their hard-earned money.
4.) Explain who your competitors are (And if you say you have no competitors, that is a certain sign you are unsophisticated and deserve no investment money!).
5.) Explain why you are 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 want to see that you can convince the world of your dream — not just them.
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7.) Explain what star you can hitch a ride to. Has a well-known business agreed to distribute your new product? Investors feel much more comfortable knowing you have an established player willing to distribute your wares.
8.) Ask for a specific amount of money. If all you do is ask for money, then you can’t complain if an investor gives you R50.00 for a cup of coffee.
9.) Tell prospects exactly what you will spend the money on (Hint: A trip to the Maldives for you and your friends will not impress).
10.) Dress well, act confident, and put on the air that you don’t really need their money but would be willing to accept it if they bring enough to the table to be a strategic partner for you. Again, sad but true regarding human nature, but people are much more likely to give you money if they feel you don’t really need it.
Very Important: Investor Pitch Decks and 8 Dumb Things You Should Never Say
Finally, make each pitch presentation serve as a focus group for your next presentation. When one group of investors asks you a series of questions after you pitch, write down all of those questions and make sure most of them are answered in your next pitch so that the next group doesn’t have to ask them. Keep pitching and keep improving your pitch and eventually, you may get funded.