Converting an idea into a successful one requires finance. Getting investors interested in your business enough to secure funding is daunting. You’ll need a stellar pitch. However, preparing a pitch to attract and engage investors is easier said than done. But worry not; we have got you covered. This blog will discuss pitching techniques and success tips to help craft that pitch.
What is a Pitch Deck?
When we say pitching, most people think of a speech or paper documents. That is not the case. Visual stimuli work the best while making your pitch more effective. Thus, a pitch deck becomes a crucial part of pitching business ideas. A pitch deck is a visual display of your pitch, like a slideshow. It becomes a guide to your pitch speech and allows the investors to understand your points clearly. Remember, an investor only spends 3 – 4 minutes on your pitch deck (source). It should range between 10-15 slides to present your startup effectively.
A pitch deck includes the basic information of your startup, such as the problem you solve with your product or service, your core team members, your business model, the scope of growth, market opportunity, and related financial projections. The pitch deck includes graphs, charts, and forecasts to present visual information related to your pitch. A pitch deck is a visual guide for your speech. An investor can understand your pitch better with visual display.
Pitching Business Ideas and Techniques for Success
A pitch deck is a guide to help you backup your speech. But how do you make your pitch more engaging and effective? Here are some pitching success tips from 21BY72.
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Know your audience and tailor your pitch
Whether selling a product or pitching your startup to investors, you must pay attention to your audience. The knowledge scale of your audience, their biases, and their interest level helps you craft an effective speech. By understanding the investor you are presenting to, you can craft a pitch to engage them. If you know your potential investor is interested in the effect of startups on society, you must highlight what your startup offers to society. Additionally, the knowledge about your investor helps you prepare for some follow-up questions.
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Create an engaging story for the pitch
On average, as per Guy Kawasaki, you should wrap your pitch within 20 minutes. It allows you to have space to tackle any technical errors and answer investors’ queries carefully to ensure you get the investment. When you have such a short time, you must create an emotional story to engage the investors. Include emotional pointers and add questions that get the investors thinking and getting them invested in your pitch. It helps the investors connect to your startup idea and the problem it solved.
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Introduce the problem and the solution you offer
Understand that people don’t buy products; they buy solutions. Therefore, your pitch must highlight the problem you are solving with your product or service. It allows the investors to understand about your startup and its potential. Present the problem and its intensity; follow up with the solutions and explain how you can provide this solution. Show your investors how they can be a part of your solution.
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Present the scope of the startup
You must present the past and present of your startup. But what matters is the future of your startup. The scope of your startup is its potential in the future. How many customers can a startup attract, what market share can it gain, and what are the financial projections for future profits? Investing in your startup helps the investors know what ROI they can expect.
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Keep the pitch authentic and emotional
Throwing in big numbers and facts in your pitch deck may be tempting. But remember, the investors you’ll face are often experts and experienced individuals. Therefore, there is a high chance they will catch your false data. Thus, to avoid problems with the investors, keep your pitch authentic and add the right emotions to engage them.
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Add some facts and stats to the pitch
While presenting is hard, it is just you speaking about your startup. To most investors, it could be like a college lecture that they tune out of the pitching. Therefore, you must add statistical data and facts to your pitch deck. It makes your pitch more credible and draws investors’ attention. Research says that 60% of the successful pitches included financial data (source).
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Practice your pitch so you don’t fumble
Being a startup, pitching business ideas can be nerve-wracking. There are no investor pitching techniques and tips that could help you if you don’t practice them. You need to practice your pitch repetitively and improve any problem you may face. It lets you get a grip on the pitch delivery and ensure you do not fumble under pressure.
So, here are all the success tips to make your pitching effective. Now, you can use these tips while pitching business ideas. But where do you perform your investor pitching? You can pitch your startup at an investor’s office or a startup pitching event.
A startup pitching event allows startups to present their pitch deck to many investors. The startup pitching events are organized so the founders and investors can gather together, giving startup founders a much-needed opportunity to pitch business ideas.
Conclusion
Pitching business ideas to investors is one of the most important tasks of a startup company. It is necessary to raise funds to run their startup smoothly. But making a successful investor pitch is easier said than done. You need to know what your investors are like and what value they hold. Then, you need to customize the pitch to create a pitching deck that shows what your startup is about, the problem you solve, its potential, and financial projections. Keep the pitch authentic and add some emotional aspects to engage the investors. Add relevant financial and market-related statistical data to strengthen your pitch. Practice it repetitively to ensure you do not fumble or mess up any section of the pitch.
A startup pitching event, like the global startup summit organized by 21BY72, is the perfect opportunity for startups to pitch business ideas to many investors. They can network with other startups and investors for future collaborations. Stay current about future startup pitching events like the ones organized by 21BY72 to pitch and raise funds for your startup.
FAQ
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How do I structure my investor pitching?
The basic investor pitching should include the problem you can solve with your
product or service, your business model to do so, the scope and performance of
your startup to date, some future trends and projections, and the funding you
are asking for. Structure the pitch with emotional appeal related to the problem
you might solve and the profits you can get them on their investments.
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What are the mistakes to avoid when pitching business ideas?
Often, we become robotic while pitching business ideas, throwing facts and stats in every other sentence, or blandly presenting the pitch deck. Additionally, we add too much to the pitch, making it clearer and easier for our audience to understand. Avoid doing so, and keep it authentic, simple, and with a hint of emotions.
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How do I make my pitch stand out at startup pitching events?
Open your pitch with an engaging sentence or question. It will grab the attention of the investors. Follow it up with a useful and interesting storyline to keep the investors engaged. Slowly, flow through various aspects of the pitch and explain your points thoroughly. Interact with the investors when they ask questions and listen to them attentively.