Business Pitch

June 01, 2023 12:16

As a business owner, you may understand the vision and mission of your business, but articulating that to potential investors is not that simple. Here are some tips to help you pitch your business:

1 Keep it short

Eliminate insignificant details and keep your pitch brief and straight to the point.

2 Pitch to the right investors

Select people who really know your business. They are already interested, so give them a reason to take the next step and invest in your business.

3 Understand your market

Investors need to know that you understand your market and offer something different.

4 Know your numbers

Be prepared to answer the following questions:

How large is the potential market?
How many customers do you have?
What's your predicted revenue and break-even point?
How will you fund operational requirements and manage cash flow?
Show off your experience

Show your investors that you have expertise within your industry and any other related field.

5 Know your investment

Make sure that your investors know you’re also investing your money in the business. Intellectual property like your trademark or patent is valuable. Similarly, using physical assets (eg a house in your name) as collateral shows that you have faith and a vested interest in the business.

6 Have realistic projections

The difference between a pipe dream and a calculated projection of sales revenue, expenses and profitability lies in the calculations, which are based on evidence.

7 Have a clear plan for their money

Clearly elaborate on how their investment will help the business grow and how their investment will grow.

What are some great tips and tricks from your experience?

* This article has been repurposed for this blog. The original article may be sourced from Harvard Entrepreneurship.

29 comments

Thayn Niemand

I read this...cool article on pitching https://www.entrepreneur.com/article/201826

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Shaun Anderson

As they say Lifes a Pitch!!! and it really helps to know something about pitching your ideas to clients

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Sayo Folawiyo

@RJohn this is a very practical application and the channel partnership strategy is always a viable method especially if they are focusing on the same verticals as you.

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Brett Kanichowsky

@ShaunAnderson I love this Shaun!

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Ramon Michael

@Dano_ another simple yet neccessary strategy is around planning goals specific for your catering business.Come up with goals by using your historical data. How many weddings will you do this year? How many cocktail parties? Are there times of years when your target market is busier? You know your business you know the ebbs and flows. Plan for them by defining them and then this will help with your steps of execution as they will be more focused.

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Legacy Team

@AlexSimpson your points are good here.Study your product information in terms of what the customers of your target market find important. Identify the features the targeted customer will find interesting. Ask existing customers what they liked about dealing with you and then work on those strengths in an authenic way.

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Sean Mantel

@AlexSimpson. I agree with these points. You need to think smart then apply the methods very strategically. Keeping a very good name and sometimes simply asking for business is the best way. People do not mind helping you just need to ask (respectfully).

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Reuben John

@Dano_. Your point around Word of Mouth is very important. Have you considered finding distribution channels or agents/resellers of your brand? Maybe try Photographers for weddings as they will have a large database of wedding clients whom you could work with (as an examples Danny).

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Alexander Simpson

@Dano_ great question. There is never a set answer here although it is important to interpret and learn from others. No matter what you are doing in your life - whether it is on a professional level or as a volunteer and whether you are a parent a teacher a doctor a business owner a politician or any combination of these titles - you are selling something. Before you make that appointment or attend that crucial meeting find out what you can about the company or the person to whom you are targeting your product or service. The Internet is a great place to start. Check out social media sites such as LinkedIn and Facebook and visit any pertinent websites and blogs. Pay attention to customer feedback the company has received. No one likes to have his or her time wasted. The more personal you can make your sales message the better it will be received. Put yourself in your customer's position and ask yourself what you would want to know about your service. Most people want to learn of things that will make their lives easier or better in some way. How can you meet their specific needs? Another key is to know your product and convery the message in a language/tone which relates to the client.It's hard to get someone excited about what you are selling if you are not excited about it yourself. Know your product or service inside out and backwards and forwards before you make a sales call. Anticipate questions and be ready with concrete meaningful answers.

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Danny Orange

Good day everyone! We are very new to the real business world and my question is this how is it at all possible to find the proper words to approach a potential client? We are in catering and have so far gotten by on word of mouth but i am looking to get more steady business and have not a clue on how to approach someone from a business point of view. Regards Danny danny@danos.co.za

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Simplybiz Admin

Hi @smotsili thank you for your contribution on the site. We encourage you to complete your business profile where details of your business can be furnished. Your business profile can be found on the top right hand corner under edit my profile. By completing this section your business will aslo stand a chance to be featured in the business showcase for members to view.

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Orange Sisco Motsili

We are small black owned startup business providing security services and Building and Construction Paving Plumbing and Events Management services looking for business opportunity. Regards ORAKHO OSM Security Services and Projects (Pty) Ltd smotsili@gmail.com

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Shaun Anderson

Success involves people and organisations having to sell what they have to offer – this could be our skill a product or service. This term frightens the life out of many as it conjures images of unethical smooth talking individuals manipulating others so as to get their own way.

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Sarah Murray

Firstly your elevator pitch is vital. If you can't say who you are and what you do in a few sentences you don't know who you are and what you do and neither will anyone else! Verbose presentations and lengthy explanations will not impress investors or potential clients and most likely will turn them off. Present your business in a manner that's short sweet and to the point. Investors need to be confident that your business will attract and retain customers. If they don't grasp your concept in a short time span they may presume that customers won't understand it either. For potential clients you need to identify the problem your company solves announce your promise offer proof and a plan and very importantly know when to stop and listen!

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Shaun Anderson

Whether at a sales conference in a corporate conference room hell or over lunch at a glamorous restaurant a pitch is not about transferring information it’s about transferring power. It is business but it is also theatre and the results of a successful pitch are quite simply money and power.

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Shaun Anderson

its all about how to sell yourself and brilliant ideas According toSteven Bayley - the Author of LIfes a Pitch ( a read it) The pitch is the essence of modern business. In pitching for new business ideas and emotional intelligence dominate. And the skills of the pitch can also apply to just about every significant personal transaction in your life.

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Shaun Anderson

Research and experience both prove that a very small number of pitches actually end up being bought and implemented. So the obvious question is What makes a pitch successful What do people want in order to buy you and how do you avoid the fast elimination??? Reaearch say that when a person we don’t know pitches an idea to us we search for visual and verbal matches. We subconsciously award points to people we can easily identify as having creative traits; we subtract points from those who are hard to assess or who fit negative stereotypes. It seems a combination of passion creativity and inviting the catchers (the people you are pitching to)to collaborate and a definite sense that you have know-how and practical sense about the implemenation of the idea is the best way to avoid the fast elimination because negaotive impression tend to be more memorable than positve ones.

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Shaun Anderson

Its one thing to go out and pitch for funding and investors as this article describes but id like to discuss how to pitch your company to the prospective clients

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Shaun Anderson

Good morning all you business warriors

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Andre Chale

we are small black owned startup business providing software testing and quality assurance services looking for business opportunity. Regards Teclado Technologies www.tecladotech.co.za

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Thayn Niemand

another thing I find interesting... one needs to present not only your business case/model/plan properly but you as a person need to present yourself appropriately. Last year a guy approached me to do some work for me but I was never going to part with any money because I was not confident that he was capable of dong the job because his references his appearance and his tools were shabby! Was I too harsh?

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Thayn Niemand

yep sometimes the creator need not necessarily be the runner... a great engineer may make a bad administartor/marketing type.

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Shaun Anderson

Indeed ive come to believe its that happy balance of practical intelligence ( know how and able to be implemented) with passion and creativity that creates the positive likeability - the subconscious point scoring

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Thayn Niemand

I also think that when you pitch one must not be too short and to the point.... definitely sell the sizzle and not the steak. But you need to be able to back up your facts and assumptions with proper information

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Thayn Niemand

Ialways suggest to try and create some sort of annuity income.... pretty much like a gym membership or other monthly/annual payments as these always make an investors eyes light up :)

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Thayn Niemand

I agree with all of this but I think the investor will ask what makes this business sustainable and worthwhile investing in ?

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Thayn Niemand

Dont forget that there are people out there that will be analysing the information and applying all sorts of financial ratios and so on. You have to be prepared for some very intimate and intimidating discussions!

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Thayn Niemand

hi shaun depends on who you are pitching to Isuppose...number people or big picture people?

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Shaun Anderson

You could say that to be received positively you require practical intelligence charisma and wit

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