In the business world, there are a couple of persons who are just waiting for someone to come up with a world-changing idea, so that they can invest in it. Yes, they’re looking for where to put their money. Not because they do not have use for it, or because they are philanthropists, but because that is the business they are into; the business of investing. They are also here for the money.
So, entrepreneurs like you would prepare a proposal, containing a detailed explanation of an idea that they have, and present or pitch it to an investor or a group of investors, so that they idea or project can be funded or sponsored.
Just like you may already know, many of these entrepreneurs get turned down at such meetings. Is the idea not good enough? Is the presentation watery? What exactly are they doing wrong?
This article has been written to guide entrepreneurs through the journey to pitching their ideas to investors, and getting a contract signed.
Pitch like a pro.
A professional does not necessarily have to be an experienced person. He can be a well educated (not necessarily in a school) and vast person. In your pitch, do not sound like you a asking for a favor. Do not sound like you are trying to impress them. Do not sound nervous, or like you don’t know what you are saying or doing. You need to show them your confidence in yourself and your plans. They need to see that you are certain that the idea with become a huge enterprise. Investors feel safer when they can see and feel surety.
Get your facts right, and be succinctly detailed.
In lieu of being certain, there is the need to get your facts right. Be sure of your speculations about your market, your competition, your industry and your business model. By chance, a person in your audience might know the correct details, and if you fill in the wrong details because of impatience or uncertainty, you will blow your chance the moment you mention your statistics. Also, be brief and detailed. Many entrepreneurs feel like they need long essays and many pages of text to be detailed, but it is not so. You only need the details that you can not do without. Make sure you include the important details, and remove the unnecessary ones.
There are answers you need to have before you try to pitch to any investor, because they all all the same sets of questions such as;
- What problem does your idea proffer a solution to? How?
- Who will pay for this solution?
- Is it a need or a luxury? Is it affordable for its target consumers?
- What is the return on investment for the business and the investors? How soon does the ROI come?
- Who are the competition? How are you different?
As long as you get these things right, you stand a greater chance of landing your first few investors. One thing you must make sure of is to never rush to pitch your idea and also not wait to you lose the spark.