How to Accurately Pitch Business Ideas to Investors

How to accurately PITCH business ideas to INVESTORS
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If you want to raise money for a startup business, you’ll need to know how to pitch your business idea so you can attract investors into funding your company. All business owners need to be able to pitch, whether it’s to potential customers or to investors and banks to raise money for your new start-up.

Serious investors are looking for realistic business plans and ideas when it comes to funding new businesses. Your pitch is the main thing that could either get your business off the ground or sink it. Here are some of the amazing tips to successfully pitch business ideas to investors.

Choose the Right Audience
Before sharing your idea with an investor, it is recommended to know about the interests of your investors. As an entrepreneur needing funding, what would be the use of pitching to investors who are not willing to invest in your product? Different investors can only finance your business when it is at a specific level. According to experts, it is good to start pitching your ideas to angel investors. Your audience plays a vital role when it comes to getting an investor to help you financially. After recognizing your right audience, it will be more appealing to the investors when you pitch business ideas.

Create an elevator pitch
An elevator pitch is vital. Lengthy presentation will not impress investors, and most likely will turn them off. Make sure that you can sum up your idea in a way that’s easy to understand. Imagine you have 30 seconds to describe your business, then sum up what it does, why it exists and what’s unique about it. Investors need to be confident that your business will attract and retain customers. If investors cannot easily understand your business idea, then they won’t have confidence that your customers will get it either. Practice talking about your idea in just 30 seconds.


Keep Startup Costs Low
In an age where spending is out of control, you’ll need to prove that you are a fiscally responsible manager who knows how to get the most out of a little given. Give yourself wiggle room in your operations and marketing budgets, but avoid being excessive.

Don’t get carried away with unrealistic costs when trying to raise funds for a idea. Wise investors are looking for a new business that has a tight rein on costs and an overall focus on cost control. Avoid awarding yourself a large salary, and keep capital expenditure to a minimum.

Set Strict Timelines
Businesses are required to work on deadlines. So, it is necessary to add deadlines while pitching. Set some particular timelines that meet the specified period for your investors. It shows how serious you are about getting funds for your idea. The more dedication you have for your business, the more satisfaction the potential investors will have in supporting you. Thus, it is suitable to set deadlines for yourself and make potential investors aware of them.

Show small business idea experience
Real-world experience coupled with a capable management team is likely to inspire investors’ confidence when you pitch business ideas. Build a team of credible experts. The smartest leaders in the world are those who surround themselves with smarter people. Demonstrate that your business is in capable hands with an experienced management team that knows the market and has experience running or working in similar businesses. Investors are funding a management team as much as they are investing in a great business concept.

Demonstrate realistic forecasts
Don’t pitch your business idea as a get-rich-quick scheme, inspire confidence with facts, not fiction. Sensible investors won’t have confidence you can deliver on ambitious multi-million-dollar revenue and profit forecasts. Instead, demonstrate realistic revenue growth and include three possible outcomes – worse case, medium or expected case, and best case in terms of revenue. Most investors seek out low-risk businesses with proven managers that are as close to delivering as possible. A company with cash flow, a track record and real-world experience has a better chance of getting investors than a business plan forecasting large returns.

Have a working mentality of starting small
Investors are wary of funding over-eager businesses that seem destined to bite off more than they can chew. Showing that you can deliver the goods is attractive to would-be investors.

Demonstrate that your business can crawl before you say it can walk. Perfect your marketing tactics, sales strategies and operational procedures. Investors appreciate companies with sustainable step-and-repeat business models that are poised for exponential growth. Success breeds confidence, and if you’ve shown you can deliver then you’re more likely to secure funding to expand your idea further.


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