"There is a powerful driving force inside every human being that, once unleashed, can make any vision, dream, or desire a reality." - Anthony Robbins
Ideas are everywhere. Everybody has ideas. However, not many people have the ability to execute their ideas. If you want to turn your ideas into a business, remember it is crucial to sell investors on your business not your idea. Investors don't invest in ideas; they invest in businesses. Below are tips to follow when pitching your idea to investors.
Understanding What Investors Want
First, it's important to understand what the potential investors are trying to accomplish. Every investor wants little risk and high return. With that being said, you need to convince investors that you can grow your valuation at least 10-20x from its current baseline.
A key aspect potential investors are looking for is traction. Traction provides instant validation of your business and gives you credibility. Investors will assume nearly everything you say is true if you have growing traction. Without traction, investors will question and possibly deny your business strategy. This is why it is essential to create a playbook.
Powerful Pitch Deck and Presentation
Your pitch deck is a visual summary of your business. It is essential to address every aspect of your business and anything that will be included in your business plan in your pitch. When presenting your pitch deck you also need to have a good persuasive speech.
Do not introduce yourself right away. Start with a shock and awe comment that will immediately grab the audience's attention. You need to be able to set the hook within the first 10 seconds. Memory is dependent on dopamine, the more exciting the information the more dopamine is released. In turn investors are more likely to remember you and your business. Next, tell them who you are. At this point, it is essential that your passion for your is apparent. Passion is truly the foundation for positive feelings, making it a requirement for a great speech.
After you have presented yourself, feed to audience a relatable story about your product or business. A persuasive speech should include 65% pathos, so go ahead and share a personal story with the audience. Your body movement should reflect your story. Doing this will hook the attention of the audience.
Once your story has been told, give the audience the "how". This is the beginning of your descriptive business plan. Use reputation and pick key words to use frequently. Be sure to reference any external forces. These external forces are the legal, economic, social, and technological factors that could accelerate your companies' growth. This will help investors answer the "Why now" question. Make sure you do not make the mistake of mentioning that you have NO competitors. Doing so will result in you losing credibility.
The following are key elements to remember what preparing your pitch:
- The optimum length for a great persuasive speech is between 15 and 20 minutes, keep your presentation short.
- Do not cover more than three separate themes
- Keep the work count to 190 words for every three minutes
- Use pictures instead of slides in the presentation
- Use dense text and keep it simple
- Remember the focus of the audience will be on you
- Keep questions until the end
- When talking to investors it is important that you do not make jokes
- Stand straight and display confidence
Building Blocks of your Presentation
The three most important building blocks you will need to touch on during your pitch are customer acquisition, customer retention, and product innovation.
- Customer acquisition tells investors who is part of your sales and marketing team. It also tells them what your company's product awareness and demand is.
- Customer retention gives investors a look at your customer service team. It tells them if you have repetitive customers, whether customers are happy with your product, and if your competitors are a substantial threat to taking over your business.
- Product innovation is developing your product to enhance your company's performance as well as keeping your product competitive.
Keep your passion intense throughout your presentation. It is essential to have good energy and show your audience that every ounce of what you have goes into your product. This is a serious opportunity to take your company to the next level.