If you have a great business idea, you may consider pursuing investment to make it happen. You have put all the money you earned with your passive income through Sleepy Money, but now you are left with nothing; you need an investor now. Bringing on an investor can give you the capital you need to grow your business and tap into mentorship, connections, and other resources. So, it is a good idea to do whatever you can to make your presentation as strong as possible. The following five tips will help.
1) Research the Market and Competitor In-Depth
Many investors say they are more interested in investing in the person than the business. In other words, an okay idea run by a great entrepreneur is a better fit than a great idea run by someone who isn’t as good. Knowing the market inside and out is one of the best ways to show that you are the right person.
Thorough market research can help you ace your presentation. Avoid being overly optimistic because investors will be able to see through that. However, you should also clearly plan how you will stand out.
2) Be Ready To Sell Your Product/Service
An investment pitch is like a sales presentation in some ways. While you aren’t trying to make a sale per se, you want the investor to believe in the value of your product or service. If they can’t see why someone would buy it, then you will struggle to get an investment.
Consider the potential objections a customer would have when considering buying your product. For example, you may need to justify your pricing model or explain how it differs from existing solutions. Be ready for these types of questions so you can get the potential investor excited about the opportunity.
3) Know What You Are Asking for
One of the most common mistakes made by new entrepreneurs is to have an “I’ll take what I can get” mindset to raise investment. No one will just give you money without a clear ask and a plan for how it will be used. So, before you even speak to an investor, know precisely what you are asking for.
Be realistic about the amount of money you need. On the one hand, don’t expect your local store to invest millions of dollars. On the other hand, don’t expect to build a global brand with a few thousand dollars. In short, know an actual number for your business plan. Additionally, see what you are willing to give up in exchange for that investment (and leave room for negotiation).
4) Be Selective With Your Audience
In a similar vein avoiding the “take what I can get” mindset is avoiding the “I’ll work with anyone who will work with me” mindset. In other words, you should be selective about who you present to. There are limits to this, of course. At the end of the day, you need to find someone who is interested. However, you can waste a lot of time presenting to people poorly suited to your idea.
If you have a technology company, present it to investors that know the technology world and invest in it. Having someone familiar with your industry can be a huge boon.
5) Practice, Practice, Practice
Last but not least, practice a lot. You should know your presentation inside and out. Don’t bring index cards or read off of slides. Instead, have a pitch that you could give in your sleep. This confidence and preparation will show.
Additionally, make sure you practice various questions. Try presenting to some friends, family and/or colleagues. Challenge them to stump you with questions about the business. The better you answer questions, the stronger your pitch will be.
Get Started on Your Presentation Today
The above five tips will help you to master your investor pitch. Use these and get started practising your presentation today.
