5-step guide to pitching your startup to investors.
Are you someone who has identified an untapped demand in society, developed a startup idea based around it, and looking at how to pitch your startup idea?
Or are you someone who has already established your startup and planning to take it to the next level?
If this describes you, you've come to the right place at the right time because this blog post will guide you on how to take your start-up to the next level by successfully "pitching" it to investors, business owners, potential clients, or other investors who can help you take the next step.
A business pitch is a presentation of a business concept to a group of people who can assist in turning your concept into reality. Or it could be a convincing argument that an entrepreneur makes to encourage a person or organization to invest in your startup to take it to the next level.
There are several types of business pitches, varying from an informal "elevator pitch" (a brief sales pitch lasting no more than 20–30 seconds, or the time of a short elevator ride) to an hour-long slide presentation. A business pitch should be precise, succinct, convincing, and attention-grabbing, emphasizing the value of your start-up and the product or service you provide.
Make sure you include these 7 essential slides in your pitch deck when selecting the right slides for it.
Send us a message at any time if you need help creating a pitch deck for your startup, and we will gladly assist you.
Now since we got that out of the way, let’s dive right into the 5-step guide.
Step 01 - Have an easy-to-understand overview of your startup
Imagine you have one minute to describe your startup and explain
1. What it does do?
2. Why does it exist?
3. What makes it unique?
If business investors do not understand your business concept within this time frame or less, they might not have faith that your customers will. Practice explaining your concept in 30 seconds or less. Also, be prepared to answer any questions they may have about your startup's “why, what, and how”. Try to summarize your company strategy in an easy-to-understand manner while including all of the intricacies. It’s also worth mentioning that you may not instantly see the advantage of your elevator pitch. Think of it as a chance for you to create a fantastic first impression.
Step 02 - It’s all about the story
Great business pitches are usually told in the form of a story, either from your own life experience or as a fictional scenario with a fictional person. Focus on telling a story that addresses the problem and how your small business solves it as you develop your pitch.
By adding a compelling story to your spreadsheets and charts, you can build a more complete picture of your startup's future and more effectively highlight the market opportunity.
It's even better if you can relate your story to your audience, in this example, the investor. Which sectors have they previously invested in? What were the difficulty areas in their past business endeavors? Do some research on the investor so you can tailor your story to suit them.
Step 03 - Back up your claims.
Don't pitch your business idea as a way to get rich quickly. Plausible investors will be skeptical of your ability to meet multimillion-dollar revenue and profit estimations. Instead, support all of your ideas with these two critical confidence-building factors:
Show proof of cash flow, a customer track record, testimonials, and any market research you've done.
prove that your company is in capable hands with an experienced management team that understands the market. Accounting, marketing, sales, and operations skills are critical to include in your CV, or the CV of your team if you do have one.
When pitching your start-up, real-world experience combined with evidence of your business and your experience is likely to inspire the confidence of investors.
Step 04 - Set realistic expectations.
Potential investors will want to know how you think the business will grow over time and what it will take to be profitable, even if any forecast is just an educated guess. Include a brief summary of your sales forecast, expense forecast, and expected profits in your proposal. Just keep in mind that you must be realistic. Rather than going overboard with your revenue projections, show realistic revenue growth and include three possible outcomes, such as
Make sure to provide evidence for each case, such as market data and competitor analysis.
Step 05 - Follow up with questions to improve
Following up with investors within 24 hours following a pitch is a good practice to see if they have any more questions or concerns, as well as to get any feedback they may have for you. A quick email or phone contact can assist remind them of you and your concept while also demonstrating your seriousness, making them more willing to invest.
Not only that, but it will also assist you in filling any gaps in your pitch that you may have overlooked. If you notice that the same question is asked after each pitch, incorporate an answer into your presentation. As you go, polish up and modify your pitch to make it more effective.
We're crossing our fingers that this advice will bring you one step closer to realizing your vision and growing your start-up into a multibillion-dollar business. No!! anything but into a multibillion-dollar corporation! Go and read the 4th step again.
But hey, that doesn't mean you can't turn your startup into a source of wealth and success. All you need are the right people to guide you down the right path while giving you the right assistance for you and your start-up.
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Here at CreativeHub, We do exactly that.
We help start-up founders get their firms off to a good start, and we help existing start-ups take their dreams to the next level, as we have done successfully numerous times.
Check out our success stories here.
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