We discuss What things to cover while pitching your product in front of investors? If you’re a business owner, you’ll need to know how to pitch your company. Even if you don’t intend to seek investment, having a strong elevator presentation shows that you understand your company thoroughly. Which will come in helpful if and when you decide to seek funding.
So you’ve come up with a million-dollar concept. Naturally, you’re ecstatic and eager to put your big, bold concept into action – that much is evident. What’s less clear is how you’ll receive the money you’ll need to get your ambitions off the ground.
New firms can’t usually get off the ground and maintain the momentum they need to succeed purely on their own initiative and willpower – they usually need some considerable cash to get started. So, whether you have a big new concept, a company plan, or a strategy that needs money to continue forward, you’ll need to figure out how to get it.
As a result, any potential entrepreneur must be able to present to investors. We’ll go through several strategies, tricks, and tactics to assist you confidently and efficiently pitch your ideas and business plans. Let’s take a closer look.
What things to cover while pitching your product in front of investors?
16. How to make a pitch for investors
A thorough business plan is a foundation for a successful pitch. Then it’s up to you to figure out what makes your company useful and worthwhile to invest in. You may have a 5-page financial history and a thorough analysis of how you compare to the competitors across several industries, but you simply cannot cover everything.
Because you’ll only have about 10-minutes to present your case when pitching to angel investors and venture capitalists for the first time. Here’s how to make an effective quick pitch.
15. Create a presentation
Take the time to prepare your pitch deck beforehand. The idea is to make a deck that is simple to work with and that gets investors enthused about your company.
Keeping this in mind, you should prepare a 10-minute version as well as an extended one that includes everything you’d like to share with possible investors.
To get started, download our free Powerpoint pitch deck template or browse our portfolio of over 50 distinct Industry Pitch Decks. If you need assistance putting together your pitch, have a look at this list of resources that can assist you in creating a professional-looking presentation.
14. Practice your pitch
You should work on your pitch. Because you won’t be able to swiftly communicate with each aspect of your company, every other piece of advice on this list will be rendered useless.
Too many entrepreneurs believe that simply knowing their business will enable them to articulate its value quickly and effectively. Furthermore, having a dynamite pitch deck with eye-popping images would suffice. As a result, they arrive at pitch meetings unprepared.
Rather than being able to claim, “I only need 10 minutes of your time,” and actually taking 10 minutes, you’ll quickly find yourself rambling for 20 minutes after only getting through slide 5. Take the time to rehearse, simplify your messaging, and maintain just the elements that contribute to the success of your company. Everything else can go on the table.
Similar topic: What things to cover while pitching your product in front of investors?
13. Outline the problem with a story
Begin your pitch by telling a captivating narrative. It should address the market problem you’re trying to solve. This will immediately pique your audience’s interest. Also, if you’ve done any testing, try to include the results.
It’s much better if you can tie your tale to your audience, in this case, the investor. What industries have they previously invested in? What issues have they encountered in their previous business ventures? Do some research on the investor so you know what they’re interested in and can personalize your message to them.
12. Your solution
Share what makes your product distinctive, as well as how it will answer the problem you mentioned in the previous slide.
Keep it short, simple, and easy to convey to others for the investor. Unless potential investors are well knowledgeable about your business, avoid utilizing jargon. Again, if you’ve done any testing previously, include the results here to lend credibility to your solution.
11. Your target market
Even if it’s true one day, don’t say that everyone on the planet is potentially your target market.
Consider who you’re designing your product for and divide your market into TAM, SAM, and SOM segments. This will not only impress your audience, but it will also assist you in strategizing your roll-out strategy.
When talking about your target market, strive to create a user persona or your ideal customer if you can. This can assist investors in visualising the possible consumer base and shows that you’ve given careful consideration to who your company will service. In a fast pitch, it’s also far easier to communicate to a specific person rather than a large demographic.
10. Your revenue or business model
This slide is usually the most important to investors. How are you going to make money? Be very detailed about your products and pricing, and underline how eagerly your market awaits your entrance once more.
9. Your successes: Early traction and milestones
You want to establish credibility early in the presentation. Take some time to share the traction you’ve gained in your field.
This is your chance to sound your own trumpet. What you and your team have accomplished thus far will impress the investors (sales, contracts, key hires, product launches, and so on). You’ve probably stated parts and pieces of this already, but now is the time to establish a whole picture of your company.
But don’t simply talk about what you’ve done; talk about where you’re headed as well. Show them a timeline with next stages and extra milestones, as well as how funding will assist them attain them.
8. Customer acquisition: Marketing and sales strategy
This is one of the components of an investor pitch and a whole business plan that is frequently overlooked. How will you communicate with your customers? How much will it set you back? What criteria will you use to determine success?
Your financials should make calculating your consumer acquisition costs simple. However, you should also indicate how you plan to reach out to customers, which platforms you’ll be advertising on, and perhaps a sample of material. You’ve done your homework and know your target market, so why not demonstrate investors what it means in practise?
7. Your team
Investors are more interested in people than ideas, so be sure to include information on your rock star staff and why they are the best people to manage this company.
Also, make sure to mention any skill sets that your team may be lacking. Most startup teams are short on crucial personnel, such as marketing, managerial knowledge, programmers, sales, operations, and financial management. Let them know you’re aware that you’re not an expert on everything.
6. Your financial projections
Show how much income (per product) you expect to generate over the next three to five years. You must share your assumptions to back up your data. Investors will pull out their smartphone calculators to double-check your numbers, so provide them all the information they need to ensure your calculations are correct.
If your financial graph exhibits “hockey-stick growth,” be sure to explain why those inflection points occur. It’s tempting to spend a lot of time describing financials, but keep in mind that you need to communicate with them swiftly. Add your comprehensive financials to the longer pitch deck or offer to answer inquiries after you’ve finished presenting if investors want to hear or learn more.
5. Your competition
Again, this is a crucial component of your pitch, and many individuals skip it or don’t provide enough information about how they differ from their competition.
Showing this slide in a competitive matrix format—where you list your competitors down the left side of the page, your features/benefits across the top, and checkmarks in the boxes for which firm offers that service—is the ideal method to express your value proposition over your competitors’. To demonstrate your competitive edge, you should have checkmarks at the top for each category, and your competitors should lack in crucial areas.
4. Your funding needs
Clearly state how much money has previously been invested in your company, by whom, and ownership percentages, as well as how much more you will need to advance to the next level (and be clear about what level that is). Will you need to raise money in numerous rounds? Is it a convertible note, an equity round, or something else you’re looking for?
Remind your audience of why your management team is capable of growing their investment. Tell investors how much money you need, why you need it, what you plan to do with it, and what you want to achieve.
3. Your exit strategy
Most investors will want to know your exit strategy if you’re seeking substantial amounts of investment funding (above $1 million). Are you looking to be acquired, go public (which only a few companies do), or do something else? Demonstrate that you’ve done your homework on this exit strategy, including the organizations you’re targeting and why it’ll make sense in three, five, or ten years.
Investors will be looking for evidence to back up your assertions. Have a well-thought-out company plan on hand to share with investors so they can learn more. After all, the goal is for you to present a convincing pitch, and at the conclusion, their hands will be outstretched, demanding either your executive summary or your entire business plan.
1. Take feedback and refine your pitch
Whether you obtain funding, another meeting, or rejection as a result of your pitch, look for ways to improve. Don’t be scared to ask for feedback and incorporate it into your pitch the following time. Don’t press the issue if the investor is unwilling to supply any. It’s their time you’ve already spent and are now asking for more of, so striking the right balance is difficult.
Have another team member present to take notes and review with afterward if possible. Look for flaws, spots where you blundered, and slides that elicited negative responses from the investor. Even if you think you’ve found the perfect pitch, keep refining, practicing, and executing it. This is how ” What things to cover while pitching your product in front of investors”.