Successfully Pitching a Business to an Investor
Someone asked me a question and it goes thus; “Why are people becoming self-employed and why people are creating more company?” my answer is “go check the unemployment rate of those counted and check the unemployment rate of those not counted which includes illegal immigrant, those living in rural area, those who are so engrossed in the ghetto making a living from doing anything that they didn’t bother themselves getting counted and so on, then you will know that the unemployment rate is high. Also, not everyone one that is employed is making enough to pay for their bills so people do two or even three job.
A lot of people are working day and night on ideas and innovations that will kick off as business which will shake the world and most people already got something spectacular and awesome but they do not have the funds to push this ideas to reality and then they think of meeting with investors. If this business can successfully start, then it is going to create jobs for a lot of people but how do entrepreneurs pitch their ideas to investors and make them invest in their business. One important thing when pitching to an investor is the pitch deck and in this post, I will be putting you through how to organize your pitch deck for an investor.
How Your Pitch Deck should be
In organizing a pitch deck, most people will be familiar with this guidelines; the cover page, problem, solution, product demo, market size, business model, competition, underlying magic, go to market, team, traction, and fundraising. In this post I will be explaining in general what to do with pitching.
How to Present your Pitch
At this point, you should be able to identify the problem to be solved, the premises and the proposed solution. This is the major part of the pitch, aimed at capturing the heart of the investors. If you get this wrong, then you are certainly going to miss out on getting an investor. Do not fill the section with too many jargon, just be straightforward, and put only verifiable claims. If any statement is questionable, then the entire pitch is not worth it. While you are presenting your pitch, you are to follow the flow of the investor. You should be able to catch the attention of the investor in 30 seconds.
Do not forget that no investor will be giving you money out of the good will of their heart, they are giving you money because they know you will be creating a sizable company, bringing in sizable revenue and giving them sizable returns on their investment so let them know why they should invest in your business.
Explain the market size to the investor by estimating what your share in your market will be and let them know the market share you will be holding. Also explain your business model to the investor making them understand how the business will be making money. Also, compare your company to your competitor and let your investors know what makes your business different and unique. Explain your competitive advantage over your competitor.
The major goal of pitching a company idea to an investor is to get funds but if you did pitch the idea and got turned down by an investor that doesn’t mean you have performed woefully. Just pick up yourself, check for the places where mistakes were made and do it over and over again till you get it right.
this post reminds me a lot of advice that I see in the program "Shark tank" where entrepreneurs seek financing for your business I think the most important part is to be clear the premises of the business, at least in the world of writing and film, is Most importantly, the backbone of the entire process.Then have a good foundation and you will surely have a successful business Planning must also be taken into account, without taking it into account surely many mistakes would be made.
I agree with you, the absence of accounting will result in keeping the business down.
This is a great idea, making people believe in our idea is really a big deal and a lot of business owners need to understand what it means to appropriately pitch our ideas to investors, thanks for sharing.
Thanks a lot @oluwatobiloba, pitching ideas to investors is a real big deal and evey entrepreneur must learn and understand.
There are many things that can be done for a newly created company to grow, no one can invest in something that cannot be seen in the future of a profitable business. and he is right nobody will give money for heart, the capital is very important for any investor.
Appropriately, investors also do not want to lose their funds.
Thanks for reading.