One of the challenges that inhibit start-ups from getting off the ground is lack of funding, and if you’re struggling to get investment into your idea, then read on for some practical tips on what you can do to convince investors to take a chance on you.
It is often said that investors don’t invest in ideas, they invest in people. So the first step to giving a successful pitch is to be yourself, and be honest about your journey. Highlight the ups and the downs to show a complete picture of how far you’ve come and where you’re at, so as to give better credibility to your aspirations for the future. Plus, through honesty, the passion you have for your idea will shine through naturally.
Start Small and Build from There
When you initially start your business, it’s important to have at least a three or four loyal supporters that believe in your idea. Then, build a diverse network from that first handful of people and expand it until you have a definite community that you can tap into to attract initial investors.
Build a Relationship First
Before you start launching into a pitch asking for money, consider the fact that your potential investor is a human being too. They probably appreciate human connection and would be more than happy to mentor you. So start by engaging with them on a human level and build a relationship of mutual respect, which can then serve as the foundation for an investment partnership later.
Work with Integrity
Integrity is one of the most important qualities that you can have as an entrepreneur, and it refers to the ability to do what you need to do, when you need to do it. Ditch the excuses and do the work. Your willingness to work hard shows investors that that you’ll do what it takes to get a return on their investment.
You’re not the first, nor the last entrepreneur to pitch your potential investors, and they’ve probably seen -and heard-it all. That’s why you need to set yourself apart with a unique pitch that’ll grab their attention from the get-go. Organise a demonstration of your product or service, using real-life scenarios or create an imaginative presentation with a truly customised feel. Pay attention to details like copy, design and flow, and you’ll have a riveting pitch in no time.
If you want your potential investors to take you seriously, then you have to exude a professional demeanour. For example, arriving on time for the presentation shows them that you respect time, while your dress code will affect your level of confidence when giving the presentation. Whether you’re a beauty specialist, an inventor or store owner, you can always find ways to dress appropriately while still expressing your personality.
Also, keep your pitch simple and to the point, no need to bore investors with too much detail. Stick to your plan, be honest about your revenue model and have a positive attitude!
Practice the pitch on a close friend or family member before you actually start using it on potential investors. “As they say, practice makes perfect, and the more you practice, the easier it’ll be for you to simultaneously connect with your audience as you delver the pitch,” says Angel from CSB Group. You can also use this opportunity to work on making your tone relatable and the pitch of your voice more consistent. With practice you’ll be able to exude confidence and effortlessly deliver the final pitch without a hitch.