HOW TO PITCH YOUR BUSINESS IDEA TO A POTENTIAL INVESTOR IN FIVE MINUTES
So you have taken the time to prepare a well-detailed business plan for your dream business and you can’t wait to capture the attention of the right investor who is capable of bringing your idea to life. The truth is, every business needs capital for the operation to take place and it is the dream of every entrepreneur to have a well functioning and stable business from the get-go hence the importance of attracting an investor.
Of recent, different bodies like the government have come up with schemes for SMEs to leverage on to help grow their business as a way of reducing unemployment. They do this through setting up entrepreneurship schemes (like the YES program and the N-Power program) where young people are requested to send a proposal on their business idea, these proposals are vetted and those with bankable ideas are invited to defend them.
The truth is as a young prospective entrepreneur without capital, you need investors to raise money to bring your idea to life. A good investment boosts your moral; it also gives you this extra motivation seeing that someone actually believes in you.
But it is also important for you to first understand why you need one in the first place and what role they can play for your business growth and after you have identified this, then you are ready to take the next step which is pitching your story.
It’s a pressure-packed moment, and you need to be at your best. So how can you erase your anxiety and impress potential investors?
1 Tell a story
The secret to this is that storytelling has been reported to be the easiest way to convince and persuade people without them even realising it. It is even then an added advantage when you are good at it. Create a narrative, give them a reason to be excited about working with you, tell them something that would keep them at the edge of their seats. While facts and figures go a long way, it’s important to use those numbers to tell a meaningful story. Framing your business idea as a story also helps you explain your passion for your business.
2 Define your problem
Is your business idea solving a problem? If ‘No’ then you should go back to the table and work on your business idea. This is because a business can only be bankable if it is addressing and aiming to solve an issue.
Unfortunately, if your product doesn’t solve a problem or fill a need for customers, investors aren’t going to share your excitement.
“Start off with the problem,” ask questions like “Do you understand the need that’s in the market today? Do you have the facts to back that up?” and follow up from here. It is critical that you can answer these questions when heading into a meeting with investors.
Thorough market research along with customer surveys and interviews can show if your product is needed. If you lack the data to prove that your idea addresses a problem, it’s difficult to engage the audience and even more difficult to get funding from investors.
3 Practice as much as you can
Not only does practising help take the nerves off, but it also allows you to learn where you can improve your presentation. Give your pitch to friends, family, neighbours or anyone else willing to listen.
Practice in your office, in front of a mirror or anywhere you find comfortable. I am sure you don’t want to end up looking confusing while giving your business pitch. To make your pitch sound more natural, plan your dramatic pauses out. The pause gives the impression that you’re coming up with the material while in motion.
Do all of these in your next pitch and be sure to come out smiling. Please drop your success pitch stories in the comment section.