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Tips For Creating a More Effective Investor Pitch

If you are a budding entrepreneur, your biggest struggle is probably with getting investors on your side. It’s always the tricky bit because not only do you need to convince investors that you’ve come up with the greatest idea ever conceived, but you also need to convince them that you will be able to make a profit if they decide to invest in your endeavour.

See Also: Entrepreneurs: Are They Born or Made? [Infographic]

Convincing investors is not as simple as taking them through your business plan; they need a whole lot more than that. And that’s why it’s crucial to deliver a pitch that can convince investors that your endeavour has potential and that it cannot only return a profit but that it can also make an impact on the world.

So, for your pitch to be effective, you not only need to lay out your plan, but you also need to make your pitch exciting and inspiring. Your pitch needs to be the kind that makes people want to join your cause.

1. Know Who You Are Pitching To

Making an effective pitch is not just about promoting your idea, it’s also about knowing who and how to promote it to.

While there are numerous investors out there, not everyone will be suitable for your business. For example, if you are a new start-up, you may find that most investors are reluctant to give you a head start. Investors are usually more interested in making safe investments and a start-up is always risky. But do not lose heart because there are many angel investors out there who are willing to take that risk.  

To find the right investor for your cause do some research and see who has funded other companies in your industry. Nobody likes to gamble their money away unless they truly believe in the cause and that they will make a profit, so if you see that there are investors who have repeatedly made contributions to companies similar to yours, then you have a better chance of getting them on your side.

Apart from finding the right type of investors, it’s also essential to find what can speak to your potential investors. For example, if you are pitching to an investor who only understands the world in terms of economics and market value, don’t try to sell the innovative spirit of your company to them too much; it will go unappreciated. This is not what is going to get them on your side, present them with data and statistics and you’ll have a better chance of getting them to invest in your company.

If, on the other hand, you are approaching an investor who’s known to back companies that are likely to impact the world with their creativity, showcase how innovative your project is and how it will change the world.

2. Establish Your Brand

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These days consumers do not buy for the sake of buying, they want their money to be spent on something worthwhile, something that makes an impact on their lives and the world around them and this is precisely why marketing managers have been concentrating on making their brands more visible, rather than their individual products. A brand is essentially a story that tells the world who you are and why you make a difference in the world. If your story is powerful, it can create a following for your company that will help you get ahead of the competition.

So, if you are looking for investor contributions it only makes sense to work on the story of your brand before you pitch to the investors. Find what your company represents and why people should invest in it. How will it change the world? And what impact it will have on the world? These questions will help you with crafting a story for your company that can really inspire investors.

3. Be Enthusiastic

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The more dynamic you appear to be, the more chances there are to get the investor on your side. Investors are business savvy, so they are always able to distinguish someone who’s driven and who’s determined to make their company succeed, so they are more likely to give their money to this type of entrepreneur as they know they’ll see a return on their investment.

See Also: How to Stimulate Creative Thinking as an Entrepreneur

Getting an investor on your side can be a trying period for any budding entrepreneur, and it’s likely that you will be turned down a lot. However, you shouldn’t lose heart, remember that the more enthusiastic you are, the better your chances are to convince someone to give you their money.

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