Focus on funding: Pitching to investors

Getting an opportunity to pitch to investors is no easy task so you want to make sure if you do manage to get a coveted spot in front of them, you wow them – no matter how much time you have to impress.

Investors come in many different forms – they might be acquaintances, they might be total strangers – either way you should aim to bowl them over with your in-depth knowledge, sturdy plan and enthusiasm.

In this article we will:

1. See where you might find investors
2. Talk through tips when pitching to investors
3. Discuss mistakes to avoid

Where will you find investors?

When you’re looking for someone to invest in your business, it’s always a good idea to make a list of the business contacts you have. Even if these contacts aren’t in the investment game themselves they might know people who are and could point you in the right direction.

If none of your contacts come up trumps you should approach one of the many investor networks out there. AngelList is a great site dedicated to matching up start-ups with money men (and incidentally talent if you’re also looking to hire).

Otherwise a simple search on Google for angel networks with throw up lots of options for you. Or you could approach the British Business Angel Association and ask them for advice.

So what should you do to prepare for a pitch?

We’ve all seen Dragons’ Den – entrepreneurs who go in unprepared come out with nothing. Thorough preparation will help you to create a pitch that might catch the eyes of the investors. There’s even an app now which claims to help you prepare for a pitch – it’s called Perfect Pitch if you’re interested.

Here are a few tips of our own:

Create an elevator pitch

You may never need it but if the opportunity arises that you can speak to an investor but only have minimum time, having an “elevator pitch” prepared will help. This is basically a quick, comprehensive and convincing overview of your business – short enough to be delivered in an elevator ride.

Know your numbers

Pitches should include details of every part of the business. As part of your presentation you should include: the overview, your team, the market, the solution you provide, the business model, customers, competition, financials, funding, vision and where possible – a demo.

If you approach a pitch without being able to discuss all of these elements you will not get far.

Show your enthusiasm

For an investor – the entrepreneur behind the business is as important as the idea. They need to believe in you so you need to give them a show of your passion and dedication. If you bowl in the door with enough gusto and readiness to work hard – it’s half the battle. Well, almost.

Prove the market

It’s all well and good going in and talking about who your target audience is. You should try and get some support and evidence of interest from this audience. You could conduct market research, ask your network on social media – get as many comments as possible backing your plans.

If the investors can see the market is there for your business, they will be more likely to part with some wonga.

Mistakes to avoid

Taking criticism personally

Investors are touch talking and won’t shy away from picking holes in your pitch and making criticisms. Don’t take these personally, they may feel like a personal attack but it isn’t, it’s business.

Aiming too high with profit estimations

Your estimated trajectory needs to be realistic – if not the investors won’t take you seriously. Make sure that any claims you make are grounded in fact and be able to argue your figures.

Don’t rush

When you’re delivering a speech – the temptation is often to rush through to the end but this os a mistake. You sound more confident if you take your time and your investors will understand what you are saying.

Be prepared to negotiate

Few entrepreneurs come out of an investors meeting with exactly what they wanted. You need to be prepared to move the goal posts slightly to get the investment you need. Know your limits though and have these clear in your mind.

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