The business world is tough, especially when securing financing from investors. Click here to learn how to prepare a pitch that gets investors interested.
Businesses start somewhere. Many begin without finances, so they search for investors motivated to help start-ups reach their first-quarter goals. However, the money wasn’t handed over in a brown burlap sack sporting a dollar sign and tied with a pretty green bow. Founders of major companies worked to get funded, and they got their financing because they had a killer sales pitch. You can have one, too, by following our guide on how to pull investors in the first minute of your pitch.
Focus on the Problem Your Business Resolves
When seeing investors for the first time, you should know they don’t care about the research you have prepared to discuss. The time it takes to present the problem your company wishes to fix is crucial. Just as long as it took you to find the point of the previous sentence is the same amount of time you need to show up and impress.
Focus solely on the problem; someone has a hole in their shoe, and you have the ultimate invention to fix their issue. Present the solution immediately, and investors will perk their ears, turn their heads, and become engaged.
Avoid Going Over 2 Minutes
Everyone has seen Shark Tank and knows how crucial it is to deliver everything you have in under two minutes. While it may seem like you’re spewing words like a sprinkler spews water on a hot summer day, you’re providing information that’s worth the investment.
Learn from the business owners on Shark Tank and other shows in your network about presenting your pitch in under two minutes. While you typically have four minutes to show everything, the problem and solution must be delivered in two.
Don’t Tell Investors About Your Product; Show Them Through Video Content
Sometimes, your problem needs explanation, and while you try to tell investors what your business can do for potential customers, it’s better to show. Showing what your company does through visual content could be better than speaking sometimes.
For example, biomedical companies should utilize animated video content because time is limited. When presenting animated video material, your concepts are engaging, informative, and concise. Investors want to know why your product is better than the competition—if there is any—so they know their investment is worth it. Always show rather than tell potential stockholders why your product is the best.
Once You’ve Cast the Line and Hooked On, Reel in a Deal
The last thing you do after hooking your audience is present your deal. Ensure your value is realistic. Don’t go in giving an absurd amount—have we learned nothing from Shark Tank? Give yourself a fair investment amount and a share in the company. When you provide a fair amount, investors will be fair to you. You can deliver a great sales pitch. You really can. Many business professionals wouldn’t be here without a mentor or guide on developing a successful investment pitch. Work with your team to deliver the best pitch you know you can. One side note, if an investor does deny you, take it as helpful feedback to improve for next time.