After you’ve drawn up your business idea and crafted your business plan, you need funding to turn your entrepreneurial dream into a reality. When your ability to secure funds comes down to a 10-to-20-minute pitch to potential investors, it’s easy to feel nervous. It’s a pressure-packed moment, and you need to be at your best.
So how can you erase your anxiety and impress potential investors?
Business News Daily spoke with a handful of experts, including a former participant on ABC’s “Shark Tank,” about how to nail a pitch to potential investors.
1. Tell a story.
A common topic among experts was the need to be personable and create a narrative. While facts and figures go a long way, it’s important to use those numbers to tell a meaningful story. Framing your business idea as a story also helps you explain your passion for your business.
“Give investors a reason to be excited about working with you so they will buy into your business plan with certainty,” said Michael Simonetta, CEO of Kibii. “Show them why you’re working toward your goal, not just how. Tell them why you’re motivated to solve a problem and you’ll have a better chance of winning them over.”
Erin Beck, the founder and CEO of Wana Family Network, believes storytelling sets her presentations apart from those of her peers. Beck founded an online network for family-to-family babysitting exchange, and she says she frequently speaks with potential investors who aren’t parents. With her audience lacking an emotional connection to her concept, she creates emotional appeal with an engaging pitch.
“Make the story more important than what you’re selling, because once the market numbers speak for themselves, they don’t connect with you for what you’re doing, but why you’re doing it,” said Beck, who placed second at the Glendale Tech Week 2017 Pitchfest.
2. Define the problem.
You might be head over heels about your business concept. Your prototypes for the product are all stellar and you’re thrilled about your business plan. Unfortunately, if your product doesn’t solve a problem or fill a need for customers, investors aren’t going to share your excitement.
“Start off with the problem,” said Donna Griffit, a corporate storyteller for startups. “Do you understand the need that’s in the market today? Do you have the facts to back that up?”
It is critical that you can answer these questions when heading into a meeting with investors. Thorough market research along with customer surveys and interviews can show if your product is needed. If you lack the data to prove that your idea addresses a problem, it’s difficult to engage the audience and even more difficult to get funding from investors.
“I’ve seen startups try to take shortcuts on this and end up with glazed-over eyes in their audience,” Griffit said.
Read more: https://www.businessnewsdaily.com/10921-pitching-potential-investors.html