You’ve done the work to validate your idea, understand your market and have a solid business model. Now you’re considering talking to potential investors to infuse your startup with capital. Talking to investors can feel like an enormous task, but learning how to effectively communicate your business idea in a clear and concise way can ensure a greater chance of success. We have a few tips and a video from Bill Warner from EntreDot to get you started.
Cover the details. Investors are looking for certain details in your pitch:
- A believable story told concisely
- Clear knowledge of your buyer and your market opportunity
- A solid value proposition
- Your go-to-market plan
- Attractive financial results
- Investor opportunity for an outstanding return on investment
Be prepared. It’s important to understand who you’re pitching to. You can slightly modify your pitch to fit the interests of the investors. This means you should do some research on the folks who will be in the room. Knowing who you will be pitching to will allow you to anticipate questions they may ask.
Practice. Practice. Practice. In most scenarios, you’ll have a set time frame to pitch your business. You don’t want to go over on time or run short. Keep your pitch simple and concise, know your key messages, and practice your pace.
Get the next meeting. It’s not often that investors write a check at the end of pitches. Focus on demonstrating the attractiveness of your business and get investors interested in learning more.
Remember to show the progress you’ve been making with your idea and build the capacity to communicate that to potential investors. You don’t need to sound cool. You need to be clear on your business idea and what you do.