5 Tips on how to Approach Investors to Pitch Your Idea
Do you have an out-of-the-box business idea in mind and are eager to see it become a reality?
Do you have the intention and willpower to give it your best shot and start a business?
If your answer to both questions is a yes, then read on to learn five tips on how to approach investors to pitch your idea. The journey of producing a game-changing and unique idea and transforming it into the business you have always envisioned is anything but easy. It requires a significant amount of time and effort. No matter how fascinating it sounds, starting a business from scratch also comes with several challenges, and arranging funds is one of the biggest of all. When it comes to raising capital, several startup owners approach investors. In this entire process, your pitch plays a crucial role in obtaining funding. Although it is not possible for investors to show interest in every pitch they get, make sure that you leave no stone unturned when given a chance.
If you have also been thinking about how to stand out among others, here are a few tips you can use to make sure that investors decide to pitch in your idea:
Give a Detailed Introduction
As they say, ‘first impression is the last impression.’ You need to make sure that you do not miss any vital details while presenting your idea. Your pitch should clarify how your idea differs from others and why an investor should put his/her money into your business. Always get a fair idea of what a particular investor is looking for and make your introduction detailed enough, especially considering the points they would want you to cover.
Keep Your Emphasis on the Benefits
Investors put their money into a business for the ultimate reason – they want to make a profit out of it. As a result, it is extremely important to emphasise how investing in your idea would benefit them eventually. No matter who you are approaching, an established venture capitalist company or an angel investor, the easiest way to stand out and interest them is to show them how and when they can expect to get their money back. Once they are convinced that this investment can prove to be a good deal for them, your chances of getting the funding also increase.
Let the Figures Speak
When you pitch your idea to investors, they would want to see the initial results. Keep everything ready with you, be it the business graph, expected growth trajectory, future business plans, previous growth statistics, the initial profit margins you made, or the potential customers or stakeholders you aim to bring in the future.
Talk about the Dream Team
Add the human touch to your business deck by always talking about the team which makes it possible. If not in detail, briefly mention the leaders of your organisation who are taking care of the most crucial decision-making, such as executive, strategy, finance, technology, and human resources. Often, the investors are putting their risk on the people rather than the business, so make sure that you introduce your teammates, at least the leaders, and their roles.
Ask for Their Opinion
When you approach an investor, it is also a clever idea to ask their opinion about the concept and its potential before concluding the pitch. This will not only demonstrate that you value their input, but it will also help you identify any potential weaknesses in your business. Flexibility and the right attitude play a crucial role when pitching to an investor. Always be clear about the questions that may come your way and keep the answers ready. Ask other decision-makers of your startup beforehand before you declare the debt or the equity you expect. Have your team on the same page before you go to pitch to a third party. You can work on those points and make your business idea more effective in either case.
Finding an investor for your business is no less than a challenge, but it gets easier if you do it the right way. If you are a startup founder who has an idea with good potential, you can reach out to us and up your networking game. Startup India is a platform where you can connect with other startup founders and exchange knowledge.