If the one thing you can’t emphasize enough, it’s the grandness of drilling your pitch. Many of the entrepreneurs tend to think that pitching is just another five-finger exercise, well good luck with that thought! When persuading investors, your first impression decides whether it’s a trophy or a bag full of stones you are taking on your way home. Below are some points that entrepreneurs should avoid while pitching to business investors.
In this post, we'll cover:
Rough elevator pitch
If you want to prevent having a hard time raising money then you need to brush up your elevator pitch. Having a short and to the point pitch will make the professional investors reach for their checkbooks. Make a well-made pitch that wouldn’t take more than a minute to verbalize in an unrushed albeit skilled manner. It doesn’t come out just like that. You should be able to distil all of the content in your presentation.
Long and boring pitch deck
It’d be safe to say that professional investors such as angel investors and VCs do not have all day to listen to your petty, long description about the unnecessary Hows and whys, reason being, you’re not the only talented guy they are going to have a conference with. Play smart and try to capture everything in about 15-20 minutes. Don’t make a heedless presentation. You must be able to cover all the content in your presentation while pitching to investors for your seed or vc funding needs.
Overcomplicating the Message
Avoid using jargon or technical language that might confuse investors. Keep your pitch clear, concise, and easy to understand, focusing on the problem you solve and your unique value proposition.
Lack of Market Research
Don’t overlook the importance of thorough market research. Failing to demonstrate a deep understanding of your target market’s needs and size may raise doubts about the viability of your startup.
Ignoring the Competition
Avoid underestimating or ignoring your competitors. Acknowledge and address their presence, but also emphasize what sets your startup apart and how you plan to gain a competitive edge. Know how using the competitive benchmarking for your startup could be useful here.
Unrealistic Financial Projections
While optimism is essential, avoid presenting overly ambitious or unrealistic financial projections. Investors seek credible and achievable growth forecasts backed by data and a well-defined business plan.
Neglecting Questions and Feedback
Be prepared to answer questions and accept feedback from investors. Avoid being defensive and demonstrate your openness to discussing concerns, as it shows a willingness to learn and improve your startup.
Having an illegible summary
Time is of the essence but the work should be done right. This should be your motto. Concentrate on spending your time on making a rational and coaxing executive summary.
Not knowing your audience
It is no duck soup to find investors. It takes tenacity and a bit of fortune. Do your research before meeting with an investor. Ask yourself these questions:
- What kind of business investment they have made in the past?
- Will they invest in your business?
- What is the current scenario of their investment scheme?
- How firm is their background?
- How much money would they likely to invest?
Knowing your audience in a precedent manner is a good run for any startup.
No power over meeting
Investors, by every means, don’t have all day to listen to your pitch. Understand the clock and don’t spend much of your time on small talks and introductory things. Make sure how much time you’ve been assigned for your presentation and don’t deviate from your path.
If you follow the steps defined above, you can avoid the ordinary mistakes that other entrepreneur would make.
