Whenever Moshe gets pitched, he always asks this question: show me on a piece of paper how everybody is going to make money.
Ninety-nine percent of the time, the people pitching can’t do it.
But, Moshe says, “If you have clarity – anybody who has clarity – here’s money. I’m your partner!”
Here’s what else you must consider when pitching an investor your business idea:
Know Your Audience: Tailor your pitch to your audience. Investors, customers, and partners have different interests and priorities. Understand what matters most to them and address their concerns.
Clear and Concise Message: Your pitch should have a clear and concise message. Explain what your business does, why it matters, and how it solves a problem. Avoid jargon and overly technical language.
Unique Value Proposition (UVP): Highlight what sets your business apart from the competition. What makes your product or service unique? Why should people choose you over others?
Market Research: Demonstrate that you understand your target market. Provide data and insights on market size, trends, and customer demographics. Show that there is demand for your offering.
Team: Investors often invest in people as much as in ideas. Showcase the qualifications and expertise of your team members. Explain how their skills are relevant to the success of the business.
Financial Projections: Include financial projections that are realistic and based on solid assumptions. Investors want to see a clear path to profitability. Be prepared to explain your revenue model and growth strategy.
Problem-Solution Fit: Clearly articulate the problem your business addresses and how your product or service solves it. Use real-world examples or case studies to illustrate this fit.
Traction and Milestones: Highlight any milestones you’ve achieved, such as revenue growth, customer acquisition, or product development. Demonstrating progress can build credibility.
Risk Assessment: Be transparent about the risks associated with your business. Investors appreciate entrepreneurs who acknowledge challenges and have mitigation plans in place.
Elevator Pitch: Prepare a concise, compelling elevator pitch that summarizes your business in a minute or less. This is crucial for grabbing attention and leaving a lasting impression.
Visuals and Storytelling: Use visuals like charts, graphs, and images to support your narrative. Additionally, storytelling can make your pitch more engaging and memorable.
Practice and Feedback: Practice your pitch repeatedly, both in front of a mirror and with trusted advisors or mentors. Gather feedback and refine your presentation based on their input.
Timing: Respect your audience’s time. Keep your pitch within the allotted time frame and be prepared to answer questions succinctly.
Credibility: Build trust by providing evidence of your accomplishments and showcasing testimonials or endorsements from satisfied customers or partners.
Exit Strategy: Investors often want to know your long-term plans. Discuss your exit strategy, whether it’s an IPO, acquisition, or another path to provide a return on their investment.
Follow-up Plan: Be prepared to discuss what happens after the pitch. Outline your plan for nurturing investor relationships or next steps with potential customers.
Adaptability: Be flexible and adaptable during your pitch. Be ready to address unexpected questions or concerns and be open to adjusting your strategy based on feedback.