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.