Delivering a successful pitch of your business idea is one of the most important skills you can learn. It’s a crucial step in recruiting investors to get your new business off the ground or take an existing business to the next level.
Although essential, crafting an expert business pitch isn’t an easy skill to master. To help you create, grow or sell your startup, here are the top tips on how to make a pitch that investors can’t refuse.
Don’t just pitch; tell your story
When considering how to pitch to investors, start with the idea that it should be more than a presentation. Skip the rigid, memorized speech. Instead, tell your story.
Stories are one of the best business pitch examples to keep your audience engaged in what you’re saying for a few reasons:
- Emotion: Stories naturally create a feeling in your audience. This is crucial because, more often than not, people make decisions based on how they feel instead of what’s most logical.
- Descriptions: Sharing your story allows you to quickly divulge details about yourself, your team and your business idea.
- Facts and statistics: It’s easy to weave facts and stats about your business into a story so that they support your points and tie into your pitch.
Additionally, business investors generally prefer to invest in people, not just ideas. By sharing your story, you show the investors that your idea is viable and you’re the right person to make it happen.
Lay out your plan
While sharing your story, lay out your plan for the business. Be sure to describe your strategy precisely and concisely:
- Explain where the profit is
- Show what your service or product does
- Concentrate on the final user experience
- Provide a long-term vision of the market
To move forward, you must describe your project in detail. Your plan should be in-depth and easy to understand. Anticipate investor questions and do your best to address them in your pitch.
Facts, numbers and details are essential when pitching to investors. Show what you have today and what you will have several weeks from now to give them a better perspective.
Demonstrate what’s in it for them
Your pitch should also let your investors know what’s in it for them. For example, when pitching to angel investors, they might believe wholeheartedly in your mission, product and team. But if they don’t think there’s much to gain from investing, they could pass on your idea.
Show your investors who you are, what your idea is and how you plan to get the business started. Don’t hesitate to share the successes and traction your team has had since starting the company.
Remember that investors likely get hundreds, if not thousands, of pitches. You can set yourself apart by tailoring your speech to them. Stick to high-quality materials and emphasize what they can gain from investing in your company.
Be clear about what you want
Clarity is what makes a good pitch great. Potential investors may not be familiar with the ins and outs of your business. Clarity can get someone who doesn’t understand your business model to grasp what you’re saying. It’s often best to avoid:
- Tech speak
- Industry jargon
After all, the last thing you want is to get to the end of your pitch and have the investor be confused about the next steps. If they’re confused, the chances of moving forward with any investment will drop significantly.
As a passionate business owner, you have many valuable stories, ideas, facts and figures you want to share. However, remember that the investor is taking time out of their day to hear your pitch.
The best pitches are short, sweet and to the point. Respect the investors’ time by keeping your pitch concise. The quicker you can summarize your main points, the more grateful they will be.
That doesn’t necessarily mean that your speech will be brief or light on details. But a concise speech can help ensure that you have plenty of time for the investor to ask questions, offer advice and, hopefully, make an investment.
Practice, practice, practice
You’ve heard the adage that “practice makes perfect.” But that isn’t entirely true — only perfect practice makes perfect. Before pitching to investors, practice your pitch exactly how you intend to deliver it.
Have your visual aids or props ready and deliver your speech using the same tone, cadence and volume you’d use if it were the real thing.
You might start in front of a mirror. You can also video your pitch and critique the recording. It also helps to present in front of smaller audiences or friends and family to gain confidence.
Don’t be too hard on yourself
If you mess up or an investor passes on your idea, don’t give up. Pick yourself up, stay on course, improve your pitch techniques and try again.
While there’s no secret to a successful pitch, these tips can help you make an expert business pitch that investors can’t refuse.
How NEXT helps protect your investment
Whether you’re pitching to start a new business or grow an existing one, NEXT can help protect your investment while showing investors you take your business seriously. NEXT insurance creates customized business insurance packages at affordable prices so you can get the right amount of coverage you need.
Our streamlined online application allows you to see coverage options, pricing and purchase policies — all in less than 10 minutes. As soon as your purchase is complete, you can access your certificate of insurance online.
If you have questions, our licensed, U.S.-based insurance professionals can help.
Want to learn more? Get started today with your free online quote.