Pitching to investors isn’t easy. When you make a presentation in front of the people who have the power to help you realize your entrepreneurial ambitions, you need to be able to answer any and all questions, and you need to make a compelling case as to why you deserve their time and money.
Have your paperwork in order
An impressive thunderous presentation can lend way to investors considering making the exceptional rare move of signing a deal right then, but provided you can fill in some details. It’s at this point that you need to present your potential investor with your business plan, revenue projections, operational expenses and cash flow data. This information will show the venture capitalist that you don’t just have a good idea and some promising numbers, but an actual plan for using their capital to grow your business.
Demonstrate your value through social media
Like any serious entrepreneur operating in the Internet Age, you should have a decent-sized social media following on platforms such as Twitter, Facebook and Instagram. Your pitch deck should include information about the size and engagement level of your social circle. You can get an edge on your fellow capital seekers by demonstrating market interest in your product via a successful run on a crowd fundraising site like Kickstarter or Indiegogo. As this Entrepreneur piece notes, investors are always happy to hear that your company has performed well in an asset test.
Know your competition
Unless you’ve cracked the code for cold fusion, you probably have some competition in the marketplace. While you might feel the urge to not acknowledge the existence of your most obvious rival in your presentation, this is a mistake. Venture capitalists aren’t stupid, but they’ll assume that you are if you can’t outline what you have to offer the public that is better than a rival company. Instead, confront the issue head on, show off your intricate knowledge of your business’s strengths and weaknesses and explain how your fleet-footed, digital-first company has the tools and drive to disrupt the current market paradigm.
This article was written by Mario McKellop of Examiner.com for CBS Small Business Pulse.