As a small or medium scale business owner, you are probably looking to scaling your business as fast as possible. To achieve this, you need investment right? Investment is not just about the money you get from an investor, it comes with other side advantages such as access to a better network of people that can help take your business to the next level, a good investor should also be able to share his/her experience that will in turn be beneficial to you for growing your business. You should be careful while choosing an investor, do not just agree to go into a deal with an investor just for the ‘money’. A good investor should be someone who really loves and connects with what you do, he or she should be able to offer you advises also or at least link you up with people that will be better advisers for your business.
However on some occasions, some investors are just in for the profit they would make out of this business, in this scenario, then you know you have more work to do. Choose an investor you know you would be able to cope working with easily, not someone who wouldn’t pick your calls when your business is in debts. However, to get an investor, you need to come up with a pitch. A pitch is a presentation of your business that contains essential information on what your business idea is about. The outcome of a pitch depends on a number of factors. Some business owners end up being successful at business pitches simply because an investor likes who they perceive them to be.
Others can be due to factors like having a great idea, past records of sky high margins, great display of commitment by the entrepreneur or team. On the other hand, some pitches just end up being unsuccessful due to having a not so WOW idea, poor margins, lack of commitment to the business, bad presentation skills. The least you can do as an entrepreneur is to prepare well for such a pitch. You should really carry out your research by gathering all the materials you can lay your hands on, watching pitching videos etc. We at SpreadMedia took the time out to talk about some of the basic things that a good pitch should highlight.
What’s your business about?
Now, what’s your business about? What problem(s) are you solving? How are you solving it? What’s your competitive advantage (unique selling point)? what’s the target market for your product?
What do you need to make it a reality?
Here, you should talk essentially about the resources you will need to get your business out there, it should encompass areas such as human resources, financial resource. Your finance is really an important part of your business pitch. You should be really prepared for this aspect as this is really what most investors want to hear you talk about, if you are a finance enthusiast, this should be easy-peasy to ace, if you are not really into finance or a member of your team is not, you should consider talking to someone who is well grounded in finance before a pitch.
You should know basics such as your sales or projected sales, the margins on such sales, your budget, and your current valuation etc. Your human resource plan should also talk about how many partner/people you need to get the business started and their respective job descriptions. Actions you need to take to ensure the business becomes a reality should also be highlighted.
What’s the bigger picture?
What will the business be about in years to come? Any plans for diversification?
These are some of the things you need to give a good pitch, once you can chop and screw all of these, you should be fine unless an investor doesn’t like the smell of your perfume on the pitching day.
Think we left something out or got additions? Kindly let us know in the comment box below.