How to successfully Pitch a Business Idea to an Investor: Many persons have come to embrace the principle that one of the best ways to be independent and have strong financial potentials is to own a business. The early periods of starting up a business and keeping it afloat are the most difficult to handle and the most pivotal in determining whether a business will succeed or fail.
The need to learn about pitching a business idea for some other persons is the fact that they work in an environment where they are expected to act as professionals and pitch business ideas for their client. Whatever the reason may be, learning the art of pitching a business idea in this 21st century is a great soft skill that a lot of persons crave and desire to have in their grasp.
The major elements of pitching a business idea and how to develop skills for achieving strong idea pitches will be considered briefly.
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How to successfully Pitch a Business Idea to an Investor: 7 Tips
The following are some key requirements which a person must have at his/her disposal if he/she is to be great at business ideas:
1. Having a deep understanding of the Business: A person cannot do a great job pitching a business idea if such person does not have a deep understanding of the business and the industry within which the business will thrive. This deep understanding of the intricacies within the business and possible answers/ preparations for major hurdles that will be faced in the course of the business gives the presenter the confidence that will be required to pitch a great idea.
Knowledge, it is true, gives confidence. It is as a result of the knowledge which a person has in a business that makes it easier for a person who developed a business idea to pitch a business idea on the business in question. Thus, every aspect of the business must be closely looked at and researched on to give a general and holistic idea as to what the business is about really.
Deep understanding of the business also makes it easier for answers to be given with respect to questions which may be asked in the course of pitching the idea.
2. Experience in the Business Area: Another key factor that greatly influences how well a business idea is pitched, is experience in the business being pitched. Where a person has experience on the workings of a particular area of business, this deepens the knowledge and understanding of such person in the business being pitched.
Also, investors are more likely to “buy” the idea being pitched and invest where they are convinced that the business is being handled by a person with experience. The manner with which the business is pitched and the practical knowledge/ experienced demonstrated goes a long way to convince listeners.
3. Start Small and Grow Big: For a business to realistically survive the hurdles that it is faced with during those early years of existence, it is of huge importance that I it is started small and given time to grow. Starting small offers an opportunity to learn how well to handle the business in its inceptive years before expanding big.
A business idea with a clear plan to start small with little resources presented with practical ways to grow it big into a business with huge resources is more believable. Investors will only trust a person with huge resources when that person has shown some skills and expertise in managing relatively smaller resources.
Also, it easier for a small business that has failed to bounce back than for a big business that has crashed to bounce back. Success in smaller ventures breeds confidence in greater ventures.
4. Develop an Elevator Pitch: Pitching a business idea involves convincing a group of persons on the viability of a business idea within a specific period of time. In some situations, this time frame is very short and comes once in a really long time. Thus, the ability to fully leverage on it when it comes up no matter how short it may be is an elevator pitch.
For a person to be considered as being a true expert in pitching business ideas, the person must be able to highlight the key areas of such business in the shortest possible time and get investors willing to listen on and on after the first few minutes. The need to develop an elevator pitch can thus not be emphasized enough.
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5. Be realistic with your projections: Business is basically ventured into for the purpose of profit realisation. However, a business owner cannot however expect to win over the hearts and minds of investors by stating unrealistic and incorrect financial projections.
Investors most times take out some time to investigate into Business ideas that have been pitched before them. It is a terrible attribute for a person trying to develop a business to be associated with the trait of being dishonest. This will go a long way to affect the business face. Thus, in a bid to make the pitch very exciting and terrific, care must be taken not to make unrealistic projections.
6. Know you Audience: One way to make public speaking in whatever form easy is to understand the persons such speech or idea is directed to. A proper understanding of the class of people a business idea is being pitched to and their idiosyncrasies about business will go a long way to positively affect the outcome of the idea being pitched.
There are different types of investors with different financial standings, thus a good understanding of how far an investor can go for an idea and the expectations of such investor cannot be emphasized enough.
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7. Practice Consistently: Practice as many times as possible the business idea which you want to pitch. Review as many times as possible to mode of presentation of the idea, the pitch of your voice, the manner with which your ideas will be presented, what should come first and what should come last. Review your presentation methods and ensure to adapt the one with the most captivating and exciting methods.
Practice how best to keep in your grasp the attention of your listeners, even when they have short attention span. One way to avoid being boring is the use of diagrammatic expressions and the practical involvement of the listeners. Make them go through your idea in a way that it seems as though the idea was organically developed by them and not you.
Edeh Samuel Chukwuemeka ACMC, is a Law Student and a Certified Mediator/Conciliator in Nigeria. He is also a Developer with knowledge in HTML, CSS, JS, PHP and React Native. Samuel is bent on changing the legal profession by building Web and Mobile Apps that will make legal research a lot easier.