3 Tips to Effectively Showcase Your Pitch to Prospective Investors

Pitching to Investors
Photo credit Jacob Wackerhausen/Getty Images
By , Small Business Pulse

Pitching your business to prospective investors can be an intimidating process. This is particularly true for any small business owner receiving an influx of rejections from potential investors. However, a pitch meeting with a prospective investor can become much less intimidating and more approachable if you consider these tips.

Know your audience
When pitching your business to potential investors, you don’t need to know everything about them as you would your best friend, however, it is beneficial to know as much as possible. Good opportunities can be hard to find so be prepared and knowledgeable when given the chance.

A great way to meet a potential investor is to be introduced by a third party or business colleague. An introduction like this can give entrepreneurs added information to thoroughly research a potential investor’s background and interests before a business pitch is made.

Upon meeting with your potential partner, it is great to get acquainted with each other, but you do not want to waste anyone's time. With that in mind, you would do well to avoid any frivolous small talk and just get right into your pitch. After all, this potential investor has given you an audience. Why would you want to waste any of your time on a conversation that doesn’t involve your business? Stick with the topics that are important to your investor, especially how their investment will work to grow sales.

Be thorough, but don’t overdo it
Being thorough in your message is crucial to gaining the interest and trust of potential investors. Establish knowledge about previous investments, which will help everyone understand how your business fits into their business plans.

Do not overdo it by telling your investor about every little detail of your product and its production. Limit your scope to the interests of your investor. An investor doesn’t necessarily care about the tiny-technical details of production, but rather cares about your target market and profitability.

Know your business
Of course, no one knows your business like you do. However, your investor will ask you about more than just what it is you do and why it should matter. Be sure to also have a firm grasp of your market, how big it is for growth and good ideas about how to gain market share. An investor is more likely to move on a product that has broad appeal than one that targets only a niche market.

Another aspect of knowing your business is being precise when asked about sales numbers. If you answer with a figure that sounds like an estimate, you’re telling your investor that you don’t have exact numbers. This can imply that you’re inflating your numbers for the sake of your audience. Giving an answer that is exact helps your investor know if your product is worth the investment.