People often assume securing investment is the start of your business journey. However, there is plenty of work that needs to be done before you get to this stage. You’ll need a solid business plan, and you’ll need to identify parties who could be interested in supporting your business.
The final hurdle in winning over investors is delivering a great pitch that engages your audience and convinces them that holding shares in your company is a worthy endeavour. If you do this well, you will secure the finance you need for your business. But, with investors hearing countless pitches every day, it’s not easy to stand out from the crowd.
Below, we give our nine top tips to help you make a compelling pitch for your business that will see your chances of obtaining funding soar.
Tell the right story about your business
When you decided to start a business, there was a reason for it. Whether it stems from personal experiences, a creative idea coming to you or a market gap you discovered, every business grows from somewhere. So, when pitching your business, you should look at those origins and start a narrative from there.
The idea of having a story behind your business matters as it tells a person why they should care. It should also showcase the ethos and drivers for your venture, which can help give your audience a better insight into who you are and what you hope to achieve.
As with any story, there needs to be a resolution you are going to overcome. In terms of your pitch, this means understanding what your company will offer that will make customers come to you above your competitors. In this sense, your business is the hero of the tale.
Most importantly, the story you tell needs to be engaging and bring people on board. You want to present the right image about it to stand a chance of securing investment, which means providing the best possible information. It’s also worth noting that telling a ‘story’ doesn’t mean making things up about your venture – instead, you need to frame accurate information attractively.
We’ve previously written about creating a great story in an investor pitch, which will help you understand how you can translate your business plan into a compelling narrative.
Focus on the key points
By the time you are crafting your presentation, you will know everything there is to say about your business. However, this doesn’t mean you should regurgitate it all at your pitch. Instead, focus on the key points you want to highlight.
The critical points to mention are those that explain why and how your business will succeed. This could include your value proposition, target customers, market analysis and financial projections, as well as high-level detail about your operating strategies.
As these are the essential aspects of your business, don’t be afraid to hammer them home. You need to be clear and make sure investors know how they translate to your broader worth. This will ensure that the correct information stays in their mind after the pitch.
If they need more information, you should have your business plan to hand, ready to offer further insight.
Tailor it to your audience
Not every pitch is the same. Different investors want different things from a business they choose to work with. So, it makes sense that you need to adapt your pitch depending on who you’re approaching.
By the time you have been invited to pitch your business, you will have liaised with the investor or submitted pitch deck documentation previously. From this, you may gauge what priorities they have and adjust your proposal to match. Similarly, some investors may specialise in specific types of business ideas, which will help you refine how you present your business.
The facts about your business won’t change between meetings, and for that reason, your proposal may not need to be altered dramatically. However, you should look to revisit your presentation every time you attend a new pitch so that you can finetune the details and show your audience that you have spent time considering their preferences.
Talk about people
A commonly heard phrase in sales is “people buy from people”. The term represents the need to build human connections in business rather than acting as a faceless brand – and it applies in your funding pitches as much as it does to your sales techniques.
When talking to investors, focus on the team behind your business. This could include owners, directors, executives, other staff or stakeholders. When discussing these people, you need to focus on their role within your company and the skills, experience and passion they will bring to help you succeed. It’s even better if you can get some of your team in the room during your pitch so investors can meet them personally.
By focusing on people rather than your business as an entity, you can deliver a personal touch and make your audience feel more connected. If an investor likes you, it’s more likely they will want to back you with their money – provided you also have financial potential. It’s also a great way to showcase the motivation, skills and personality behind your business, which will highlight your ethos as a brand.
Utilise relevant graphics and data
Nobody wants to sit in a room and be talked at for hours. When creating your pitch, you need to consider what you can do to keep investors engaged whilst delivering the right information. Using graphics and data can help you to do this.
Alongside your spoken pitch, you should look to have a presentation/pitch deck that offers visuals and other additional resources you might want investors to have during the session (such as hand-outs). This could consist of graphs and charts or stylised data that make a clear point about your business whilst breaking up your speech.
Other additions that could support your pitch include consumer research and case studies (including findings from surveys, focus groups or further market analysis), letters of intent or contracts, testimonials and minimum viable products that showcase your offering. By incorporating these, you can engage investors and make your business more memorable.
Be charismatic
When you are conducting a pitch, you are the spokesperson for your business. In this sense, your audience’s impression of you as a person will reflect on their lasting impression of your venture. It’s therefore essential to be charismatic and likeable.
Before going into the meeting, take time to focus on why you are pursuing the business idea you’re about to present. Starting an enterprise is no mean feat, so you will only choose to do so if you genuinely believe in its value. You need to show this belief through your confidence and passion if you want an investor to believe it too. It may even be worth looking into public speaking tips to improve your presence.
You also should be afraid to have a personality during the presentation, including incorporating humour or other engagement tactics where appropriate. As long as you remain professional simultaneously, you should may find it easier to carry a dialogue with the investors while acting as a strong representative of your business.
Use accurate information and stats
As with your business plan, everything you state in your pitch must be honest and accurate. By doing so, you can ensure you deliver a truthful image of your idea and that every claim you make is founded in reality.
One of the best ways to ensure accuracy is to refer to data and research that you have carried out with clear evidence of the findings. Ensure that you can explain where the data comes from and how it relates to the claims you make so that investors feel they can trust you and have confidence in your ability to establish a business.
Lastly, don’t be tempted to make exaggerated claims. Investors carry out their due diligence, so they’re likely to quickly suss out any dishonesty, which could see you lose credibility and irreparably damage your chances of getting funding.
Don’t deny the risks
Any business has risks that it will have to overcome. Some venture may be more challenging than others, but it’s not 100% certain that you will succeed in any circumstances. Investors know this and accept the risk factor that comes with putting finance into a business.
During your pitch, don’t gloss over the risk level associated with your business. If there are any causes for concern, such as competitors, changing consumer behaviour or niche markets, tackle it head-on. However, be sure to focus on what you will do to overcome that risk so you can still assure investors of the potential of your business.
Being open about risk can help you build trust with the investor and prove you are presenting an honest picture of your business. It also shows you’ve done your research to understand the obstacles you may have to face.
Be prepared to answer questions
Although your pitch should provide all the critical information about your business, it’s natural for investors to have questions. If they do, it’s usually a good sign they’re interested in your business and want to find out more. And you need to be prepared to answer any queries they may raise.
Prior to the meeting, try to think of any potential questions that might be asked and have your answers ready in advance. It might even help to have a test run with some trusted advisors. Most crucially, you need to understand your business plan inherently and have considered every aspect of your company, as this will allow you to be armed regardless of what happens.
You should also look to leave time at the end of your presentation purposely to allow investors to ask you questions and offer any feedback.
Conclusion
Being able to deliver an outstanding pitch that does your business justice is key to securing investment. Like creating a business plan, this means putting in the effort in advance to craft a presentation or pitch deck that is engaging, clear and places your business in the best light.
If you’re effective, you can gain access to the funding you need to achieve your goals whilst starting a valuable relationship with investors.
If you need support in getting investment-ready, whether it’s creating a business plan, tailoring your pitch or identifying relevant contacts within the industry, we can help.
Our team of advisors has worked with various businesses across sectors to obtain investment and empower them to fulfil their funding goals.