Preparing to Pitch Investors

You believe in your business 100 percent — and have done the groundwork to understand its goals, operations, and projections. Now the challenge is figuring out how to persuade others to get on board, namely investors capable of signing off on the funding your company needs to launch, run, and grow.

Securing the funding you need through some combination of personal savings, business loans, and outside investments — from friends/family or firms — can mean the difference between thriving and failing. Lack of cash flow is a major reason why small businesses shut down. According to Fundera, more than one-fourth of businesses (27 percent) reported that they were not able to secure the business funding required to sustain or grow their business.

Are you getting ready to make your case in front of investors, whether they are people you know or a company that may be interested in backing your business? Here are some tips for preparing to pitch investors.

Tips for Putting Together a Winning Pitch

Investment pitches themselves may be relatively short meetings. After all, investors tend to be pretty busy people. The amount of prep work it takes to craft a successful pitch tends to be much longer than the actual event itself.

Keep these suggestions in mind as you’re doing the important behind-the-scenes work of creating your pitch.

Start with Your Business Plan

First and foremost, financing a small business requires you to define exactly how much your company needs and for which specific purposes. The foundation of your pitch begins with your business plan — think of the pitch as a more audience-friendly, abbreviated version of the key points contained within your business plan. Your goal, then, is to bring the most important parts of your business plan to life, taking them from the page to the presentation.

Your business plan will cover important topics investors will inevitably ask about, such as:

• What makes your company unique from the competition?
• What are the conditions of the market you will be entering?
• What qualifications and skillsets do your team members have?
• How do you plan to market and sell your products/services?

From your business plan, you can then put together an engaging pitch deck containing the most vital information for investors to know. You can hand out copies of your business plan, or at least an executive summary, to potential investors at the end — allowing them to digest this document at their own convenience.

Don’t Just Tell — Show Your Products

Telling someone about a product may pique their interest but allowing them to see it in action — or perhaps even hold or try it themselves — can convert them into believers. Plan to include a demonstration of at least one product or service during your pitch.

Product demonstrations go beyond merely proving the functionality of the item(s) in question — your goal is actually to demonstrate the value your products provide to their target customer base. Many experts recommend identify two or three key value propositions, also known as the way in which your products address genuine pain points for customers or add measurable value into their lives.

If you’ve ever seen an episode of Shark Tank, then you’re familiar with the idea of not only giving the investors a sample of what you’re selling — or letting them experience the product for themselves in some fitting way — but also the importance of explaining exactly why your product will be what customers need in their life compared to what is already available on the market.

Narrative > Numbers

Your business plan and pitch will contain plenty of tables, graphs, and numbers. However, these figures are most effectively utilized to back up the story of your company. Why? Because numbers — while important for demonstrating past, present, and future performance — do not evoke an emotional reaction within us.

Numbers are made more powerful when they are presented as part of an overarching narrative. Your business is more than just a collection of cash flow statements, revenue charts, and profit margins; it’s a dynamic organization with goals, values, and real-world impacts.

Dig deep to figure out your company’s story. Why should people remember your brand? Why should they care about what you’re doing? Then weave key metrics into your story to strengthen the narrative you are sharing with investors.

As one expert writes for Forbes, a good place to create tension in your story is by outlining what your business currently is vs. what it could be — with the right funding in place, which is where your investors come in. This angle can compel them to want to help, as they’ll walk away understanding your vision and how they can play a part in bringing it to life, allowing everyone to win.

Another compelling aspect of your narrative involves your own involvement in your business. What inspired you to start this particular company? Why are you passionate about this product or service? Where do you see yourself in the future? You’re asking investors to get involved not just with your business, but with you as an individual. You want to sell them not just on your offerings and operations, but also on you as a leader.

Practice as Much as Possible

It’s only human to feel some nerves before launching into your pitch. The best way to assuage your anxieties — and make sure your pitch is optimized for peak impact — is to practice. You can start in the mirror or video but be sure to also practice in front of as many people or groups as possible.

Ask for honest feedback in areas like length, story arc, delivery, Q&A session, etc. This will help you identify your weakest links so you can address them before the real showtime starts. While you don’t have to incorporate every piece of feedback you receive, you can at least evaluate whether there is some merit to people’s suggestions.

Preparing to pitch investors takes more time and effort than actually getting up and doing the presentation. These tips should help you get started putting together an airtight pitch session.