A compelling business pitch is among the first of many hurdles an entrepreneur may encounter to get their company off the ground. While it’s not necessarily an indicator of future success, a great pitch can bring valuable partnerships to the table, partnerships that may come with valuable financial resources.
Great businesspeople know that the key to success lies in fully understanding customers’ needs and desires and delivering the right solutions at a profit. In the same way, when pitching to potential investors you need to be clear about what they want to know about you and your business and provide the necessary information in a clear and concise way.
Given there will always be some form of competition in any pitch, it has to be right from the start and a business must be realistic on what is achievable.
- Investment highlights – Summarise five key reasons why an investor should invest in you and your business and the point of difference in the market that you offer.
- Business model – Great businesses have great systems and people. Explain your business model. What makes it sustainable or scalable?
- Growth opportunities – The world is not static, so you need to clearly identity the growth options your business presents and its potential into the future.
- Financials – Do not ignore your financials. To do so will reduce your creditability. If uncertain about your financials talk to your accountant or business adviser so that you can be open and clear.
- “The Opportunity” or “What“– Spell out clearly what it is you are asking for. Is it a certain amount of dollars for a percentage of the company or are you looking for more than just money? You may only have one chance. Have the confidence to be clear and transparent.
To summarise, be honest and succinct, come prepared and know your numbers inside and out. Every potential investor may be different, and might have their own opinion or criteria for success, governed by certain sets of principles. The path to success is paved with experience, and every failed pitch adds to your skillset in dealing with different investors and stakeholders.
Margaux Beauchamp, Executive Director – Corporate Finance, BDO
