4 outdated ways of pitching your startup idea to an investor
Just as there are several people with brilliant ideas for a startup, there are just as many investors who are constantly on the lookout for great business ideas to put their money in. It is all about perfecting the pitch and finding an angel investor. During their initial days, startups used to approach investors with a host of solutions planned out in case any problem arose. But with more and more startups cropping up, business minds are aware of potential problems that new companies encounter and they work towards a particular solution instead of general ones.
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Here are a few outdated ways of pitching your startup to an investor and how you can avoid them:
Changing your personality
Are you all set to pitch your idea to the perfect investor who you've been chasing for quite some time? Does he come across as a serious and somber person during your first meeting? Don't try to change your personality just to complement his. If you're a vibrant individual who talks a mile a minute, let it show. If you dupe your investor into believing something you're not, he's bound to find out later. Save yourself the embarrassment by being yourself from the very first meeting.
Taking the road much travelled
Does your idea of a perfect pitch include gathering your potential group of investors in a room, dimming the lights and making a stellar presentation? If so, you need to look up innovative ideas to leave a lasting impression on your investor. Like I mentioned earlier, there is no dearth of individuals looking for investors. If you want to stand out in the crowd, you need to put a lot more thought into your pitch. Bring out your creative side and ditch the done-to-death PPT format if that's what it takes to impress your investors.
Keeping it lengthy
Your pitch doesn't have to go on for hours. Whoever said the lengthier your presentation, the better the impact you'll make doesn't know what they are talking about. Keep it short, concise and to the point. Also, not all key members of the startup need to take their turn to speak. It is alright if one of them talks as long as everyone is present for the big pitch. Remember, investors don't have all the time in the world so make it a point to be persuasive in a short period of time.
Sugar-coating the commitment you require
A lot of individuals aren't exact about what they want from their investors during the pitching stage. They tend to sugar-coat the level of commitment so as to not scare the investors away. However, this leads to a lot of confusion after everyone has signed on the dotted line. Today, startups make their wants and needs clear in order to avoid confrontations later. Whether it is funding or hiring new staff, it is best to state your requests explicitly from the very first meeting.
You are bound to make a few mistakes in the beginning but don't lose heart. Very few get it right the first time. Learn from your mistakes and keep pitching your business ideas to investors and you're sure to become a better persuader in the process.