Uncategorized

5 Tips for pitching your startup to potential investors

on


Startup culture has inspired some of the most innovative technology shifts of the past decade. Whether you’re trying to become the next tech giant, or just a niche company, your startup idea is going to need money to get on its feet. It can take years for a startup to become profitable because quickly scaling a business requires all available resources to be reinvested into the endeavor. This is why investors are so crucial to the success of a startup. Here are five tips for pitching your startup to potential investors.

1. Show why people want your product

It doesn’t matter if you’re selling fancy soap or software, it’s crucial that there’s a demand for your product. Otherwise, you’re going to have a difficult time convincing investors that they should give you money. At the earliest stages, your startup will likely have limited data to back up your claims. It’s important that you can show investors the value of your offering even if you don’t have sales numbers to back it up. Anecdotal evidence from people who have used the product can help with this.

2. Give investors a taste of your goods

Your product might not be in its final form at the time you pitch it to prospective investors. That doesn’t mean you should neglect to offer them some kind of sample. It’s important for investors to get a demo of something before they put money into it. Even if you’re still in the prototype stages of your startup, people will be much more receptive to you if they can see you’ve made progress on your own. This shows your initiative; but also gives investors a clearer sense of your idea.

3. Highlight your business acumen

You don’t need to be Bill Gates to get money for your startup. However, you should show potential investors that you’re serious, and have considered key variables related to your idea. For example, if your startup has a lot of extra expenses, it might be wise to factor those in to your general business model. You can estimate costs of office space, or include general liability insurance quotes. Your business model may very well change over time. Still, it’s important for investors to see that you’ve thought about potential expenses, as that’s a key component to reaching profitability.

4. Be concise

You’re going to lose investors’ attention if you ramble on and on about the minutia of your startup idea. Make your presentation short—around ten or 15 minutes. You can fit all the most important information into that amount of time if you move at a reasonable pace. Investors will be turned off if they feel that you’re wasting their time. Definitely don’t go on for longer than you promise them. Additionally, by fitting your proposal into a condensed time frame, you will inherently have to do a better job of relaying on the most relevant information.

5. Sell yourself

Like it or not, you are part of your product. Investors want to see someone who is extremely excited about their ideas. Make sure you convey enthusiasm when you’re pitching your startup to people. It’s also a good idea to present yourself in a professional manner when working with potential investors. They want to see someone who will be a good product ambassador. You will lose a lot of investors if you don’t come off as likeable, or aren’t dressed up to expectations. While you want your idea to be the thing that sells, remember that you are also part of your product.

Pitching a startup is an intimidating process for people who have never done it before. However, there are a few key things you can do to immediately give you and your proposal a greater sense of legitimacy. If you can, try to pick the brain of someone who has successfully gotten startup funding. This can provide you with some additional, specific insights.

About Business Woman Media

Our women don’t want to settle for anything but the best. They understand that success is a journey involving personal growth, savvy optimism and the tenacity to be the best.We believe in pragmatism, having fun, hard-work and sharing inspiration. LinkedIn

Recommended for you

What Do You Think?

Your email address will not be published. Required fields are marked *