When you are seeking for external funding for your company there are several steps that you have to follow. After writing your business plan and submitting your executive summary to investors and following up on it, you may be selected to go in the pitch. But what experience shows is that most entrepreneurs donΓÇÖt know hoe to deliver a good pitch. There are few common errors that bring investors up to the edge so youΓÇÖd better do your best to avoid them.
Click here to learn about the best venture capital pitch formula <==== Here is a list of common mistakes to be made in a pitch that you should do your best to avoid:
- Lack of clarity and concision. You should practice your speech before going into the pitch in order to see which the problematic parts are. Keep in mind the fact that a pitch should last about 30 minutes, so you should try to gather all the essential information to be presented in this period of time.
- Your attitude should not be arrogant or megalomaniac because this will turn investors away. Think about the fact that you should work with these investors for a long period of time and try to create a connection that will make them want to see you again.
- Do not avoid questions. If investors ask you difficult and uncomfortable questions, try not to avoid answering. They are experienced business men and they can understand the risks entailed by businesses. If you avoid answering their questions you will give them the impression that you are not as professional as to handle a high risk business. You wonΓÇÖt solve anything by denying that your business may encounter bumps on the road, but you will definitely make a good first impression if you acknowledge these risks and find proper solutions for them.
- DonΓÇÖt start saying that you are the opener of a new field of activity and you donΓÇÖt have any competitors on the market. All businesses have competitors. Saying such a thing can make you look na├»ve and unrealistic.
- Make sure to make precise estimations about the market. DonΓÇÖt go in the pitch saying that you need a certain number of customers as to make your business profitable. That will make them understand you have no perspective what so ever concerning the customers you are addressing to. You should state the demographics of your target audience and make investors understand that you know who you are referring to.
- DonΓÇÖt go in a pitch not knowing figures. If you havenΓÇÖt researched the market enough as to know which are the elements that can make your business grow, itΓÇÖs better not to go in the pitch at all. Not knowing what strategies you should use in order to grow your business will make you look unrealistic and childish.
- DonΓÇÖt focus on the technology you will be using instead of the problems your product will solve. Your company should be the result of a need on the market. It doesnΓÇÖt matter how professional you are in a field if you cannot explain which the problems you will provide answers to are.
- Another aspect you should take into consideration is the delivery of your pitch. Do your best in order to deliver a sharp, clear, documented speech that will gain the confidence of investors and will make them understand that you are their best option.
Click here to learn more about the best venture capital pitch formula <== Knowing all these things can help you deliver a better pitch. But donΓÇÖt neglect the help rehearsal can provide. Place yourself in front of some audience and pretend you are confronted with investors. This can definitely help you understand which are the weak parts of your pitch and correct them. Good luck!