The start-up ecosystem has really taken off and come into its own basically driven by many factors, though the initial idea stems up when someone sees an opportunity where their innovation can solve a problem. Building up on the idea and getting someone to invest in it is a different ball game altogether.
To help entrepreneurs get the most out of the pitch meetings and ensure that investors decide in your favour, here are some tips:
- When investors decide on whether they should put their money in a project, they put themselves in customers’ shoes and then analyse the feasibility of the project. They are mostly methodical in their approach and thus you should build up your case keeping this in mind.
- Securing the first investor for your company is the hardest job. You can compare it like getting interviewed for a job for which you have no experience and asking to be hired on the spot. What you are asking the investor is to have faith in your research and capabilities when you have no proof to back your claim. These individuals whom you approach are usually sharp, seasoned businesspeople and a slight slip on your part will drive them away. So, do your homework well and proofread your presentation before heading to present.
- A smart entrepreneur is one who vets the potential investors ahead of time. So, craft your presentation to appeal to the goals and needs of people you’re approaching. Suppose you are a social entrepreneur, and if you are pitching your project to an investor who doesn’t believe in social entrepreneurship, then however solid your project is, it won’t appeal to him. So, know your audience and speak in a language they’re accustomed to and paint a picture that works for their objectives.
- Keep the language simple. You might be working inside a specific industry for a long time, and might have developed insider vernacular, but the investors only understand the money game. It’s often hard for the young and enthusiastic entrepreneurs who live and breathe details of innovation, to distil the concept in simple words. But to grab the imagination of the investors, you need to condense your vision in a clear and crisp manner that is both compelling and dramatic.
- This is your dream project and you would definitely like to take it to new heights with each passing day. But for the investor, it is a way to earn benefits and he would definitely like to know the exit and reward strategy. So, explain to them how they’ll get their money back, compounded and multiplied. They should feel that your goal is their success.
As more and more entrepreneurs dive in head-first, only those most prepared and conscientious will make waves toward success, while their more cavalier peers will sink to the bottom.