You may have been glued to your TV watching pitching week after week on Shark Tank hoping for some tips to find that one investor to help you make your business dream a reality. Capital raising for your business is one of the most important steps to help your company grow and promote yourself and your product to a larger audience. Knowing how to pitch and what to include may be the difference in you hitting a home run or striking out.
What should I include in my pitch?
You need to make sure that you are very well prepared for your pitch and there are certain things that you must include to get investors hooked on your idea and willing to shower you with funds.
The top things to remember when pitching are:
- Think about why the world needs your product or service, what problem are you helping to solve?
- How does your product or service provide a solution? And how does it do it better than your competitors?
- What is your marketing strategy? How will you get your product or service to your consumers?
- Is your team experienced and passionate enough to make your business successful? Get this across to your audience.
- What are your financials like? Provide credible projections.
- What is your exit strategy? Investors want to know when they will get their money. They do not want to be tied to you for longer than they have to.
How to put forward your best pitch
Investors see pitches from companies on a daily basis. You need to make yours stand out from the crowd to make them pay attention to you and your idea.
You might only have 5 minutes in front of a potential investor to grab their attention so it is important to remember the following tips on making your pitch memorable.
- Instil in your investors the idea of FOMO (Fear Of Missing Out). No investor wants to miss out on a big idea that others might jump at. If you sell your idea to potential investors with this attitude, they will be drawn to you like moths to a flame.
- Be confident and concise in your approach. You need to show personality in your delivery and not bore your investors with dry material.
- ‘Don’t judge a book by its cover’ does not apply in this situation – if you show up less than well groomed, your potential investors will have written you off before you even open your mouth.
- Prepare, prepare, prepare. If you do not know the inside and out of your business, your strengths and weaknesses and how you will overcome them, then don’t even bother showing up. Investors will be deeply discouraged to invest if you can’t handle difficult questions.
- Don’t have too many slides – it is unlikely you will have time to get through all of them and you can always provide more information to an interested investor at another time.
- Make sure you make an effort to understand the investor you are pitching to. If you know an investor’s background and other companies they have invested in, you can work this information into your pitch to show them how your business fits into their portfolio.
As a start-up, LegalVision has pitched to investors to raise capital and we have an experienced team of capital raising lawyers that can provide you with advice on how to make your pitch a success. Contact us today on 1300 544 755!