How To Effectively Pitch Your Business Ideas To Investors

A pitch is basically delivering a business plan verbally. A pitch typically takes the form of an entrepreneur or group of entrepreneurs presenting or describing their ideas to prospective investors.

An elevator pitch is simply a very short pitch that distils the idea into a short summary that takes only as long as a short elevator ride. A video pitch is a pitch done via a short video rather than in person. Regardless of the means chosen to pitch, the aim is typically the same; describing a business opportunity with the intention of securing funding to develop the idea further.

When it comes to succeeding as an entrepreneur or in any business, making presentations and negotiations cannot be side-lined. For starters and aspiring entrepreneurs, pitching is an ultimate necessity. In order to get funding and support, one has to be able to constructively pitch his/ her ideas to the appropriate people. You may need to pitch to clients, banks, governmental bodies and many others. As such, it is necessary to be abreast with all that it takes to pitch and yield productive results.


Of the entire bunch of people to pitch to, investors are definitely the toughest. The need to move them from the doubting side to believing in the cause you stand for, enough to invest their money in it, can be challenging. You would need to present them with a suitable business plan and explain without a doubt, why they should take your word for it. Even with a sound business plan, pitching can still be a torturous process as investors can be brutal.

Here are 5 simple ways that can serve as guides to pitching your ideas appropriately to investors:


1.  Carry out a research on all your          investors

Before even going for any pitching engagement, it is important to carry out an in-depth analysis and a background check of your potential investors. So many investors have biases for certain industries and certain type of businesses. Where you try to pitch a good idea to a wrong investor, he will only see the bad part of it. The ripple effect of this is that it may leave you feeling demoralized and cause you to want to give up.

Asides that, it is important to know the thumbscrew of each investor- the things that make them tick.
Another very important reason is that fraudulent investors exist. Some investors might come with ulterior motives while some may not even be investors at all! Avoid having investors that are family members – it is not advisable to mix business with family. Where you are determined that they are credible investors, then you can proceed.



2. Have a sound business plan with an executive summary

This is an important step in getting an investor on board. Note that no investor would put his money into a business that does not, to a good extent, have a clear cut plan. It is important that you have carried out a good level of research and concisely incorporated your feasibility report into the plan.

Having done these, the format of the business plan must suite current needs. Where you are not sure of how to present your business plan, you can check out "How To Write Effective Business Plan That Attracts Loan".

One very important part of the business plan is its executive summary. An executive summary is a short section that summarizes the entire report. It should show key points and give the investor a synopsis of the entire project. This would ensure that you start on the right foot with the potential investors.



3. Be Bold

As you make your presentation, be cautious but bold at the same time. Where there is a need to answer questions, do so to the best of your ability but with utmost care. Investors are known to ask mind blowing questions that can deter you and push you off your game. Where they offer suggestions that do not suit your plan, do not overrule them- negotiate.

For you to be bold, it is important that every part of you speaks boldness. From your dressing, to your smile, your language and the tone of your response. Nothing sets off an investor than somebody who is unsure of what he/she is doing. This goes back to planning and underground work. If you plan well, you would be ready for almost anything.



4. Have Facts

While the presentation is going, you need to provide more hard facts and less guesses. Avoid words like “I think that” or “Maybe”. The more industrial and economic facts you can present, the better your chances of sealing the deal.
In essence, your research has to go beyond what your business is about. You need to probe into the current happenings in the industry and past happenings as well.
Where projections have been made, state your assumptions clearly.

Your assumptions must be based on facts and not ideal conditions.
The moment they start doubting your knowledge on a particular thing, then hesitation starts. Another benefit of facts is that it keeps your investors excited. Most of them would not carry out such in-depth research so it is your duty to present it to them. Once you can get them excited, the battle is as good as won.

5. Be Smart

As pitching goes on, a lot may change. It is important you negotiate as smart as you can so they know you are credible and so you do not lose your idea before it begins. Where you need to sign anything, read every single detail extensively and seek clarification as appropriate.

At all times think on your feet. Be careful because whatever you say, can and will be used against you. Do not be desperate for the money; if you are, you may sacrifice your dreams for just a few millions. Be careful not to lose controlling interest of your company and where you have a team, use the term ‘we’ and not ‘I’. With all these in place and all things being equal, the deal is yours.