A perfect pitch begins with a strategy and a well-thought-out business plan.
As a business, you need to determine what makes your company a valuable investment.
While you may have pages of financial history and rigorous analysis proving your strategic edge, you may not have enough time to cover it all.
Time is money. Investors only allow about 10-minutes to support your case, so keep reading for tips on pitching your company to investors.
1. Uncover Your Audience
Before meeting with potential investors, it is important to know who you will be pitching to.
While some investors prefer anonymity, and it can be challenging to find information about them, many investors can be found on Google or LinkedIn, allowing you to get to know them before the meeting.
If this is the case, use it to your benefit and research your audience.
2. Narrate a Story
Narrating a story is one of the best techniques to convey your concept and present your organization. If you do it well, you will undoubtedly garner attention from investors.
Investors are often inundated with information, typically in the form of spreadsheets. They will obtain that information if they desire it.
But what you can offer is to convey a store and show a need of how your product and service will support the world.
Your pitch should be crafted convincingly, focusing less on the business’s current situation, but emphasizing the future.
It is essential to do this concisely.
Your story should narrate the problem your company wishes to solve, its proposed solution, the ins and outs of your product or service, your target audience, business strategy, financials and your exit plan.
3. Create a Strong Unique Value Proposition (UVP)
The value that your product or service offers should be one-of-a-kind.
So if you don’t have a solid value proposition distinct from the generic gimmick, return to the drawing board.
It will be hard to find funding if investors don’t see value in your offering.
While you may be enthusiastic about your concept, a potential investor needs it communicated to them.
Creating and explaining the uniqueness and value of your offering does just that.
So focus on translating your message into values and priorities that the investor can understand.
4. Identify Your Investment Needs
Although asking for a specific sum of funding can be daunting, being ambiguous when asking for money is common mistake founders make.
It is best to lead with confidence and be specific with your request.
Investors prefer knowing how much money you’re seeking and how much they’ll need to contribute. It is vital to demonstrate where you anticipate the company will be after investing its capital.
While being specific may not guarantee capital, it will alleviate concerns and instill greater trust in the business model and strategy, potentially contributing to tremendous fundraising success.
5. Take Advantage of Explainer Videos
User engagement for videos has grown, primarily due to the love for visuals and animation. This also allows you to explain everything your company does and present your key points in a clear and concise manner.
Explainer videos showcase complex concepts in a short amount of time by breaking these concepts into easy-to-understand short scenes and combining audio explanations with visual support.
The suggested time is 1-2 minutes, as with anything longer, user engagement tends to drop. Therefore, it is vital to only present the most important and relevant information to your audience.
It is best to employ a digital marketing agency for explainer videos as they have both expertise and experience. An agency will be able to write the copy in a tone that appeals to your investors and incorporate video, animation, and voice-over.
Assets such as explainer videos have a long shelf life and produce a great ROI.
They produce results for years because they represent the core message your company wishes to convey.
While other forms of marketing can burn up your budget quickly, you can continue to use this asset after a one-time initial investment.