Entrepreneurs are a brave breed. They’re often creative, out-of-the-box thinkers who are willing to take risks where the rest of us balk and give up even before we start.
If you are an entrepreneur with a growth-oriented mindset, you already know that a great idea will not necessarily translate into a great product. The gap between ideation and execution needs to be filled by – you guessed right – MONEY.
Funding is critical to realising your entrepreneurial dream. Bootstrapping is fine in the beginning stages but if you want to grow your venture, you will need funds from outside. In fact, a lack of available funding is one of the biggest reasons why so many new ventures fail to take off after the initial burst of energy. And often, funding doesn’t come in not because the idea was bad but because the entrepreneur failed to convince the investor that it was good.
So what can YOU do to ensure that your pitch is successful at garnering the funds your new venture desperately needs?
Here are 5 tips!
#1: Know your own offering
Having an idea is great but knowing its details and being prepared to explain these nitty-gritties to others in a way they can understand is absolutely critical.
Get clarity on these points before you approach an investor (Venture Capitalist, angel investor, bank, etc)
- What are you offering?
- Equally important, what are you not offering?
- What is your Unique Selling Proposition (USP)? In other words, why should anyone buy from you?
- How will you provide value to your target audience or customer base?
#2: Prepare a pitch but PRACTISE it first!
Is your pitch ready? Great!
But before you actually, well, pitch it to potential investors, you need to practise it first. Start by practicing with anyone who will listen with an impartial ear. This could include friends, relatives, business associates and even your spouse. Have that person ask tough questions and poke holes in your narrative with ‘how’, ‘when’, ‘why’ and ‘what’ type questions.
Record yourself as you speak and self-analyse your performance. Practise until you get your ‘public’ voice perfect.
The more uncomfortable you feel now, the better prepared you will be when you’re actually facing a potential investor. Be harsh with yourself because investors will definitely be!
#3: Get your body language right
Good body language is more than posture, gestures, appearance and gait. It is all this and more!
Most people respond positively to self-confidence. They are also put off by arrogance. There’s a fine line between the two – find it, be aware of it and never forget it! Cultivate confidence rather than arrogance.
Practise your walk and first greeting. Keep your shoulders back (but not stiff), smile (but not creepily) and have a firm, non-sweaty handshake. Modulate your pitch. Speak clearly and slowly (but not so slowly that you put people to sleep!)
Dress according to the occasion. If you’re not sure of the dress code, err on the side of caution and dress formally.
#4: Get your visual presentation right
Many entrepreneurs rely on PowerPoint slides to present their ideas. This is absolutely fine but remember that PowerPoint should be your pitch aid, not your pitch itself.
Limit the number of slides depending on how much time you think you’ll have. In fact, it might be better to assume that you’ll have less time and cut down on your slides accordingly. Next, review your slides’ content. Are they too ‘busy’ and crammed with too much information than any normal person can absorb in a few minutes? Over-crowded slides can signal a lack of confidence! Keep the slides clean with a good structure and containing only the main points/key takeaways. You can always explain the rest in your verbal pitch.
Again, if you have practised your pitch beforehand, you will find that the investors will watch you rather than your slides. It’s all about confidence!
#5: Be ready for questions that have nothing to do with your idea or offering
Investors are not only putting their money on the line for you. They are also investing their confidence and risking their reputation on a new idea. So don’t be surprised if they ask you questions that seem completely irrelevant to your idea itself. These may include:
- What motivated you to pursue this idea?
- Are you prepared to make mistakes and deal with them?
- Are you willing to learn from your mistakes? Can you give us an example?
- What kind of support system do you have?
Investors have plenty of experience with walking along the ‘winding road of an entrepreneurial journey’, even if you don’t. They will want to judge how YOU will do along this road so be prepared for uncomfortable questions and show them that you’re ready for the responsibility.
Also read:
- Tuesday Tips 5 Simple Social Media Strategies for Your Small Business [Read Here]
- Tuesday Tips 5 Fool-proof Strategies to Grow Your Business And Propel It Into the Future! [Read Here]
The life of an entrepreneur is anything but easy. We salute you! At Cynergi, we’re passionate about empowering entrepreneurs with opportunities for gaining knowledge, upskilling and networking. To know more about our services, get in touch!