There are many features that any self-respecting startup owner should have. A very important one is whether the founder knows how to pitch an idea effectively.
This is extremely important because of the very nature of what a startup is. All startups rely on angel investors to succeed. And if you can’t attract investors to put money into your idea, you rather start thinking about doing something else. If you are not that good at business pitch, you can always learn and train yourself. Here is a set of best practices that will help you improve.
Everyone loves a good story
A good pitch is made both of cold hard facts, numbers, and graphs as well as emotions. Your investors will react better if you get closer to their human side by making your pitch tell your startup story. Make sure its a story about constant developing, learning and moving forward. If you talk about failure, do it from the point of view that values the insight obtained from experimental efforts.
Make sure you master the numbers
Your pitch should be about telling a story, yes, but it also needs hard figures and facts to make it compelling to the businessmen you are presenting it to. Numbers are important, but make sure you include only what’s essential:
- The amount of investment capital you are trying to raise.
- How much you currently have.
- Include the metrics that represent the point at which you are going to start being profitable (When will the investment return and why?)
- Present a timeline that convinces your investors you have a solid roadmap to success.
If you add numbers that are not essential you are at risk of making your pitch weaker. Tread with care.
Create an investor pitch deck
A pitch deck is usually a well-designed PowerPoint presentation that consists in 15 to 20 slides. A good one usually includes elements that will remind your investors of your pitch such as soundbites, and animated elements. Think of a presentation but amped up and with the best quality possible. It should empower you and speak of you, the quality of your work and your product. Make it a memorable one.
Your startup pitch shouldn’t be too complex
Keep it simple. Your investors do not need to know every single detail about your business model. The goal of your presentation should be convincing them that you have a sound idea in your hands, and that you know to implement. Anything that’s not essential to that purpose is unnecessary complexity and will make your pitch weaker and less likely to attract capital.
Your investors want to hear about your sales
Make sure to talk about your current sales. Investors love to see ideas that are already proving to be good and profitable. Talk about your sales figures but also what you are doing to get them. For example, if I was the owner of SpeedyPaper.com I could talk about what kind of benefits the implementation of discount code SpeedyPaper gets.
You are a startup, make sure you sound like one
Don’t feel pressured about demonstrating profits at this point. You don’t have to. The kind of investors that you want are the ones that understand that they are not looking at a fully developed idea, but rather, a promising one. Typically, profits are not something a startup is great at in its early stages. So, given that you have very limited time to present your pitch, focus on what you do best, such as the potential benefits.
Throw in some testimonials from your current users
Don’t be afraid to pull some of the best testimonials your offer have given you, and throw in a couple of fo them during your pitch. Your investors will love to see what real end-users think about your product. Speedy Paper reviews talk excellent things about that service, if I was the owner, I would choose the ones that I know would appeal the most to my investors during a pitch.
