Getting an external investor is a dream for many people. Dragons’ Den, Sharks’ Tank, The Apprenticeare all about the perfect pitch and the right presentation. ‘Get to the benefits and do this fast’ is what any investor will tell you if you ask.
How to do this
Sure we all think we have unique selling points, better software, a better price, a more enticing deal and so on, but in truth, no one has to buy from us. Therefore, we must create empathy between us and the panel. People buy from people. And what the investors will buy is you.
Preparation and practice are critical in all of these stages. While it is true that your business is unique and thereby the pitch for it will be unique, there are areas you as an entrepreneur must address.
1. Show passion.
Leave the panel with the impression that you will move mountains to make it happen. Your passion is reflected by your energy, your personal stories, and the words you use.
2. Understand your business and your customers.
- Product/ service demand
- Business objective data (ownership, value, historics, purpose, cost, risk)
- Substandard business planning (route, size of market, forecasts, cash flow)
- All financial information (market size, market share, turnover, profit, objectives)
- Competitor comparison
Once you have done your research and analysis, distil these information to the essence of your product/ service. It takes discipline and a solid understanding of the market e but it pays back. It will project more professional and reliable image. For example, if you say, "My market is every entrepreneur in the world," nobody will believe you. But if you say, "This product will appeal to budget pressed entrepreneurs who are in university or recent graduates with interests in London" your specificity tells the investor you have done your homework.
3. Offer industry perspective.
You can't differentiate your product unless you understand the industry. Preparing the above mentioned information will help you position your business. You pitch will be great if you acknowledge the competition and point out how you're different.
4. Add the "magic dust".
This is the sentence that leads investors to want to hear more. Tell them how they will benefit from investing in you. Tell them what cool you will make them, how your business fits in their portfolio and the strategic intent of their corporation, tell them anything that will help. The magic moment is critical to advancing the conversation.
5. Tell them who you are and why you need the money.
If you want to get the money, highlight your track record in a particular field, the experience of your teams, or why you are uniquely qualified to bring a product to market. A winning pitch is also very specific about why the company or entrepreneur needs money and what you intend to do with it.
Your part
As we said the investors will buy you. Be confident. Look at this pitch as opportunity to present your firm in as professional a manner as possible, making sure the facts are accurate, the material is polished, the PowerPoint slides are up to date and your technical expertise at the ready.
Tailor your language and manners to appeal to the panel. Small changes in body language can have a largeeffect. Nobody really sees you changing your body language or vocal tone unless you make it blatantly obvious. Practice.
Establish empathy. Spend some time to research the investors, get to know something about them, listen and create the sense that you actually have time to spend rather than a product to sell. Let your personality shine. Make them feel important, find out what they want and give it to them in your pitch.
The panel’s point of view
Professional investors (venture capitalists, bankers, mutual fund managers, and angel investors) who are accustomed to weeding through hundreds of pitches and business plans are the toughest audiences. Here’s what Wil Schroter, CEO of the Go BIG Network, which matches start-ups with investors and job-seekers online, says:
‘A good pitch is a short pitch... it's all downhill, and downhill fast, if the investor gets the sense you're not getting to the point or you have no point’.
‘Investors respond to pragmatic, specific information," he says. "If you can articulate in two sentences the problem and the solution, you've nailed it."
The conclusion
- Prepare
- Practice
- Listen to yourself
- Critique
- Assess
- Re-master
- Rehearse
- Be confident
- Get the money
No comments:
Post a Comment