Want to write a good pitch for investors?
If you own a business that’s in its early phase and you need funding for it, reaching out to a good investor is the most viable choice.
But to capture the investor’s interest, you need to draft a strong pitch that convinces them to make an investment. So how do you write a good pitch?
In this article, we’ll tell you how to draft a strong pitch for your investors. But before we do that, let’s look at what a pitch truly is?
What is a Pitch?
A pitch is a presentation that startup founders use to showcase their business to investors when they are looking to raise funds.
Creating a strong pitch for your investors is absolutely necessary to win your investor's interest in funding your business.
So let’s look at some of the important points to create a strong pitch for your investors.
1. Start with an Elevator Pitch
Your opening is one thing that helps your investors make up their minds whether or not they want to make the investment. So use it well to win your investor’s attention.
You can easily do that by using a powerful elevator pitch. An elevator pitch is a brief and quick way of introducing your business to someone and building a connection with the listener.
It’s called the elevator pitch because it should be short enough for you to be completed your ride on an elevator with someone.
You can make your elevator pitch more compelling by including three important things.
- What the problem is
- What solution are you offering
- What your core value proposition is
2. Tell a Compelling Story
The next important thing to add to your pitch for investors is to tell a compelling story. Think about the times when you started out your business. And what made you start your business. Did it solve a problem?
Write down the answers to all of these questions and turn it into a compelling story. Think of important points that help you stand out from your competitors, and then add them to make the story more compelling.
3. Highlight the Market Potential
The most important thing that drives your investor’s interest in your business is its market potential. So it is one of the most important points to add to your pitch.
In doing so, consider the market size of your product. The larger your market size is, the more appealing it will be for your investors. But this doesn’t mean you’ll quote random numbers just to make it look more appealing. Do your research well before you add it to your pitch.
Also, try touching on why your users would prefer to opt for your products or services over your competitors. Adding this point is important because it will help you make your product stand out.
4. Be Specific About the Investment You’re Looking for
Before starting to work together, investors want you to be clear and direct about the investment you’re looking for.
Many businesses, especially startup owners, are ready to accept whatever their investors are willing to offer.
While it’s okay to be open to that idea, investors generally don’t want to hear you say that. By letting them know that, you’re only hinting that you’re new to getting investors on board.
So do your research well and discuss the amount with your partners. Then come up with a specific amount to start with.
5. Talk about Potential Risk
When you’re pitching to an investor, you want them to know everything about your business. The market potential, your business model, your revenue model, and even the potential market risks.
This will prepare the investor for any challenge that might come your way. So instead of hiding the potential risk factors, you should let your investors know about them.
But don’t forget to include how you plan to tackle the challenges. It’s a good way to let your users know that although there are challenges, you have solid plans to tackle them and boost your sales.
So these are a few points to include in your investor pitch. If you have used any other tip that worked for you, do let us know in the comments below. We would love to hear from you.