The first stages of a business are often the most challenging. As a business upstart, you are always tasked with the responsibility of steering the enterprise over murky waters in its infancy stage. This can be a tall order if you lack the financial muscle to run the activities of the business effectively. Consequently, getting an external source to inject finances in your enterprise could be an escape route. However, convincing a potential investor to trust in your business is gargantuan task. You need to project your business in a positive light with regards to its potential for success. When pitching for your business, you ought to scheme carefully to guarantee success.
1. Exhibit passion and experience
Before pitching for the business, you must develop a passion for it. When you exhibit passion before your potential investors, they will be induced into developing an interest in your enterprise. With passion, it would be possible for you to make a convincing pitch. Nevertheless, passion alone cannot help you to make a successful pitch. You need to back it up with unrivalled knowledge of your business. For example, investors must be convinced that you understand your target market and its needs. Displaying the ability to meet the needs of this target market would also enhance the chances of making a successful pitch. It would be quite counterproductive for you to show passion in something that you have no clue about.
2. Thorough practice
You ought to rehearse your presentation before walking into a boardroom full of investors. You could pitch in front of your family, friends or relatives before asking for their opinions. Such individuals could help you to perfect your pitch by identifying several flaws. The onus would be on you to rectify these problems beforehand. Thorough practice also enables you to develop the confidence needed to make a successful pitch. Alternatively, you could rehearse in front of a mirror.
3. Develop a fan base
Investors hate to believe in something that does not resonate with other people. As such, you must convince them that you have a fan base—people who believe in your business. Without a fan base, your investors would not pay attention to how your business has the potential to create a buzz within the target market. Instead, they need to hear stuff about how many people have sought your services or products. Such revelations will be the incentive for them to invest in your enterprise.
4. Show willingness to cede control
Should the investor choose to invest in your business, he or she would want to wield some power. During the pitch, you should display some willingness to cede control of the business. Anything contrary to this tactic would push the investor away. He or she would want to have a say in how the business is run as well as how the investment is spent.
5. Use of statistics
You need to research properly beforehand. Using statistics in your presentation could work to your advantage. It would portray you as a credible and trustworthy entrepreneur. After all, all investors like an entrepreneur they can trust with their money. Statistics also show that you are knowledgeable about your business and its target market.
Once you’ve nailed the above skills, make sure you present yourself professionally on the day of the pitch. If you operate your business from home, consider hiring one of the Servcorp serviced offices in your local area, where you get to use their executive meeting rooms and business centre for a certain number of hours each week.
Happy pitching!
Written by Beth Gadd
Beth runs a small business in IT related field. She operates at home while also has her virtual serviced offices set up recently.
