Rules to develop a winning pitch
There are so many ideas out there in the market. The reason why some survive over the others is a plain and simple case of investor money or funding. While most entrepreneurs do prepare a lot for investor meetings, they forget some basic communication rules. It doesn’t matter if you spend days and nights preparing the perfect pitch but often forget the basics in the end. Here are some rules to keep in mind when you’re faced with your investor and pitching your idea.
Be crisp and precise
Time is money. A brilliant idea isn’t so unless it can be explained within a few minutes. Investors simply can’t afford to spend more than a few minutes on your pitch. Concise and effective speeches often impress the investors. Sometimes, entrepreneurs get into unnecessary details of the business idea forgetting the time clause. This is something to be mindful of.
Investors like to see numbers. Project your finances in terms of cashflows, EBITDA, and balance sheet status within realistic numbers, and there is no way that the investor will not be impressed. It reveals your seriousness and commitment towards the vision of the company.
While entrepreneurs should really believe in their ideas and take pride in their venture, humility is an ingredient that keeps one grounded. In the spur of the moment, it is very easy to gain a hot head if your idea is criticized. However, there could be some truth or wisdom in what the investor is saying, so receive it with an open mind. Basic etiquette should be maintained to build a long lasting relationship.
You need to explain exactly what is unique and different about your offering. A run-of-the-mill product will immediately render the investor uninterested. With their sharp mind and business acumen, they can easily tell how exactly your product or offering really is. This makes it crucial to keep developing on your pitch or the idea.
Sync, align, and answer accordingly
One of the signs of a great entrepreneur is his ability to sync himself with another person’s thoughts and anticipate their moves. Even with an investor, always understand where they come from and what kind of questions they are likely to ask. Be prepared with an amazing answer which shows your abilities and talents. Investors love it when things are presented to them with absolute clarity and they don’t have the need to ask any questions.
Getting an investor’s time is really difficult. So when you do, it is vital that you respect their time. Investors judge your ability to use the funds based on the pitch you present. Translate laser sharp focus into your speech and idea. Time should be spent to understand the key components that need to be spoken about, and these core components should form the essential part of the pitch.
A winning pitch is not the one where you beg for funding, nor is it driven and flamboyance and ego. It is essential to follow the rules given above to cave a middle path. Developing a nourishing and healthy relationship with the investor is important and difficult at the same time. However, once these basic rules are followed, the job becomes easier and the battle is half won.