Understand How to Pitch your Business or Startup Idea in Front of the Investor

 

You gobble up the stories of the success journey of legendary business tycoons, who have built their realm by starting as an entrepreneur only. Can you figure out which part of the story is most exciting? It is how they blew an investor off with the idea of their business.

Business pitch

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Maybe you have ended up with an amazing business idea. I know you have all the qualities to be a successful businessman. You are smart, hardworking, and confident. Still, these are not enough to kickstart your business.

You need funding to begin your business. That’s why you need to gain funding from a wealthy investor. Do Do you know what is the most important thing to impress an affluent investor? 

It is the business pitch you deliver to them. It creates the first and last impression of you in front of them. So, here is the article for you to help you figure out how to pitch a business idea perfectly!

 

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What is the business pitch? What is pitching in entrepreneurship?

A business pitch is a gateway to your dreamland. Your performance over the pitch determines whether you are allowed to get the entry to your dreamland or not.

It is basically the speech you deliver to convince investors so that they provide you the required funding.

Business pitch

It is a brief but notable explanation about you, your business idea, and the purpose of your business. It can be through mail, phone, or face to face. The speech will cover who you are, what is your business idea, who is your target audience, how can your product solve a problem, what are the pros and cons of that business.

Pitching in entrepreneurship

Pitching in entrepreneurship is the one to one business pitch that an entrepreneur delivers in front of the investors. It includes the entire concept, business goals, and explanation of the product, project, or idea you intend to sell.

 

Is it possible to raise good funds for the company if I successfully pitch the idea to the investors?

Startup pitch

 

Yes. Your business pitch is the thing that represents yourself and your idea of a business venture. If the investor finds it convincing, then you will get the fund for sure.

If you flip the stories of all the successful investors, you will find out 90% of them have started their journey with the help of some investors. No entrepreneurship can start without money, and all the money comes by convincing an investor.

Therefore, if you know the effective ways, how to pitch to investors, you will surely get the funding for your company.

 

What is the fair percentage for the investor? How do I convince investors to invest in my business?

how to pitch an idea

 

The fair percentage for the investor

Usually, investors demand 20% to 25% of the profit you may get from your business. It is their fair percentage. 

The percentage increases when it comes to venture capitalists. They demand more. As they invest huge amounts, they have higher chances to lose their money.

So, the venture capitalists demand near about 40% of their investment. It also depends upon the development of your product. As per this factor, the fair percentage of the investors’ decreases and increases.

 

The Worthy Ways to Convince Investors to Invest in Your Business:

The investors go through hundreds of business pitches every day. If you want them to take you as someone exceptional, you need to follow those tips when you prepare your startup pitch.

  • Don’t forget that you are about to deliver the most impressive elevator speech. You have to cover all the points and finish it up within the time that a person takes to get his/her ride on the elevator. So, make it short but crispy.
  • Study your target audience.
  • Adopt genuine data and ensure to back it up.
  • Present an appealing narrative.
  • Have a documented continuation layout.
  • Dress for success.
  • Acknowledge your model of resources.

What should be in an investor pitch deck? How do you pitch a business to a potential client?

There are a few things that you must have to include in your pitch deck. A potential purchaser always looks for those materials in a business pitch.

how to pitch to investors

 

Essential Elements for an investor pitch deck:

  • Company Summary
  • Purpose and Perception of the Company.
  • The Team
  • The Obstacle
  • The way of solving the obstacle
  • The Opportunity of the product in the Market 
  • A complete guideline about the Product.
  • Customers

The ways to deliver an impressive client pitch:

There are some common elements that you should never look over when you are up to your business pitch. Here is the list for you.

  • Let your confidence win over the investors. Be very specific from the beginning.
  • Don’t exaggerate your speech. Make it short but crispy.
  • Tell an engaging story related to your business idea to engage your investors.
  • Be honest, be daring! Don’t be afraid to mention the risk that you have in the business. It will show your courage.
  • Let them know your potential. Display the best works that you have done to date.
  • Show why are you special. Establish your authentic branding.

What should be included in a business pitch presentation? How do you structure a business pitch?

There are some factors that a smart entrepreneur like you can never ignore while creating the business pitch. Have a look upon the following points and cover them all in your pitch.

Business pitch

 

Mandatory Materials for a business pitch presentation:

  • Thoroughly research upon the industry
  • The requirements of the clients
  • The pattern of the business
  • The summary of the competition
  • The cons
  • Risks
  • Plannings of the implementation of your idea

Also read: 7 Effective Affiliate Marketing Techniques for Beginners in 2020

The Pathway to Perform a Productive Business Pitch:

A good combination of an engaging story related to the product and the statistics that will show the requirement of the product will do the major part for you. Here are some further facts that you should keep reminding when you start figuring out how to pitch a business idea.

  • Recognize who are the targeted customers of your product.
  • Make sure that you have researched enough about the nature of your target audience.
  • Come up with a product-related story that will stimulate the interest of the investors.
  • Represent your product and its significance.
  • Engage your investors with your confidence and courage.
  • Don’t displace from the precise purpose of your business pitch.

What are the effective ways of pitching an idea to an investor? 5 Ways of pitching an idea to the investor.

The Effective Ways of Pitching an Idea to an Investor:-Business pitch

 

Turn your pitch into a story. Storytelling is the best way to attract an audience.

  1. Choose the Right Audience.
  2. Have a Simple yet Incisive Pitch.
  3. Set Strict Timelines.
  4. Speak Up About the Sales.
  5. Be Courageous. 

 

5 Ways of Pitching an idea to the investor

  • Be confident.
  • Be Honest.
  • Don’t elaborate on your speech unnecessarily.
  • Engage Your Investors by telling an interesting story
  • Deliver an engaging but crispy speech over your product, business idea, revenue, and problem-solving plans. 

Is there any difference between a startup pitch and a business pitch? How do you pitch the idea to angel investors and venture capitalists?

how to pitch an idea

 

There are several differences between a startup pitch and a business pitch.

A start-up pitch is delivered only to get funding from the investors. It is prepared for the investors only. 

On the other hand, the business pitch can be delivered to other business organizations, investors, and clients. It is aimed to gain resources.

A business pitch might be a little lengthier than the startup pitch. But, the startup pitch should be short and specific.

 

The Ways to Pitch the idea to angel investors:

Angel investors are the ones who you are meeting for the first time in your life. Still, you are supposed to convince them to arrange to fund your company. You have to be ready to sell your business conception far apart from your close circle.

Here are a few tips that you should never forget when you are going to deliver your pitch to an angel investor.

  • Tell them engaging facts about yourself. Let them know the depth of your research over the market. Express how worth you are.
  • Engage the angel investors with an engaging story that is related to your product.
  • Demonstrate how many scopes are there in the business.
  • The interesting story alone can’t do anything. Add the statistics that go to the favor of your presentation.
  • Confidence is very important. Build a robust personality. The investors will not be impressed with your ideas only. You have to impress them with your personality.
  • Be honest. Let them show who you are and why do you deserve the funding! 

Also read: Should you Start Podcasting in 2020, Does it really help you grow your business? (Facts about Podcasting)

The Ways to Pitch the idea to Venture capitalists:

When you are up to convincing the venture capitalists, then things are a little bit harder for you. You are smart, confident, and carrying brilliant business ideas under your sleeve. You already know how to pitch an idea!

All you need to do now is recalling a few facts when you create your business pitch.

  • Build an impressive business plan.
  • Include the relevant metrics.
  • Be realistic.
  • Don’t only mention the scopes of profits. Explain the disadvantages as well.
  • The venture capitalists listen to a bunch of startup pitch every day. All come up to them with the story of having the chance of gaining profit. When you will mention the loopholes as well, they will notice you differently.

Are there any forums and platforms for pitching a business idea? If Yes, what are they?

Yes. There are several forums and platforms that can help you with how to pitch an idea. You can have a look upon the platforms like Young Entrepreneur, Retire at 21, Startup nation, Teen Aspect, etc to get a clear idea to come up with an engaging Business pitch.

business pitch example

 

  • Retire at 21: A successful entrepreneur is here sharing his experience with you that he has gained on his journey as an incredible entrepreneur. His name is Michael Dunlop. Entrepreneurs will get plentiful advice and business discussions.
  • Teen Aspect: The name of the forum says all itself. If you are an ambitious teenager who dreams to start your own business, then this is the right place for you. Maybe the community is not a large one, but the members are always helping each other.
  • Young Entrepreneur: Well, this is the club of most enthusiast businesspeople. They are ready with open hands to help you out anyhow. You will get brilliant business ideas, advice, and feedback here.
  • The Admin Zone: If you want to hang out with the coolest entrepreneurs, then this is the place for you to go. Fascinating feedback from intelligent business people is always ready here to entertain any of your business-related concepts and questions.

What are the best business pitch examples?  According to the internet research & interviews.

When you plan to deliver your Business pitch or  Start-Up pitch in front of an influential investor, you should be quite concise and confident. Here is the best business pitch example for you which will help you to get the idea of how to pitch to investors.

Startup pitch


how to pitch an idea

You can start this way,

  • I am (Your Name) _________.
  •  I am outlining to open/ have started an organization company named _________.
  • It is a (mention the type of your product and explain the purpose of it within two lines).
  • It targets the ( mention the genre of people you have designed your product for).
  • The goal of the organization is ________ ( explain what you want to achieve out of this entrepreneurship in an honest but attractive way.)

Final Thoughts

It takes creativity and courage to think of starting entrepreneurship. You already know that implementing this thought is tougher than anything. Planning the business and nourishing the idea is not enough.

You need money to let your dream come true. That’s why you need an influential investor. And, there is no investor who will gift his merited money to any random guy.

You have to gain the investor’s trust first. Your first and last impression will be judged by the investors only by your business pitch. So, read the article again and create an impressive business bitch to blow off the mind of the investors.

 

FAQ’s

1. What makes a great pitch?

The pitch that can hit the clients, investors, and all the listeners both commercially and emotionally, is a great pitch. A perfect pitch is always brief and to the point.

2. How do you start a pitch presentation?

Start your pitch by telling a story that involves a realistic problem. Never ever exaggerate it. Make it succinct. Include only the essential points.

3. How do you present an idea to a company without them stealing it?

You should arrange a non-disclosure agreement. It will ensure that the company can implement your idea only when they are business partners with you.

4. What is the business pitch?

The pitch that represents your business idea to affluent investors, is a business pitch. It can get you funding and other resources. Some business pitches are made to influence the target audience.

5. What questions do pitches answer?

There is a collection of compulsory questions that you should never skip on your pitch. The questions are like, what is the problem, then can it be solved by using your product? Who is your target audience? What is your back up plan if your business faces some major issues?

 

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