5 must-haves in your business plan when pitching to an investor
Believe us, we’ve been there.
Creating a successful pitch, a thorough business plan and running the business at the same time is a task akin to that of Sisyphus’. A lot of research, blood and sweat goes into assessing and articulating what makes your business valuable and worth investing in, before pitching it to someone to help you scale. It is very common for founders and entrepreneurs to go through their business pitch as if they’re auctioning a piece of ancient value that is fragile without the support of an investor, anxiously translating something they should ideally be confident of.
All eyes on you
It is easy to feel flustered when all the spotlights are on you, but it is important to remember that in a pitch, less is more. You are wondering if they’ll like you, your idea and most importantly if they’ll choose to fund you. So, you try to cover all aspects in one big swoop! Our advice — don’t.
It will not help your investor understand what you need from them, and the value that your business brings to the table will be left lost in a flurry of points or slides if you may. Prioritising the most important points within the first few slides and weaving your pitch around them is a great hack to follow. And remember, despite humans being visual creatures, beautiful visuals alone will not win you the funds required. So, on that note, relax.
Are you ready to walk in with the best pitch of your life? Here are 5 must-haves in your pitch that we know (from experience) investors will have their eyes popped and ears piqued for.
Say 10 minutes and own those 10 minutes!
Time is money, and investors aren’t oblivious to it. Often when pitching, one may say they are there for 10 minutes but continue to stay for far more than that. Avoid going back on your word at all costs. Take time to practice, simplify and keep only the things that you need to build your business. Look at your material with an editor’s lens and splice everything that is not easy to understand for everyone and anyone.
Your story is your hero!
Relate to them; the person in front of you has gone through similar life and business experiences. Their entrepreneurial endeavors, previous investments, even particular interests should give you a fair idea of how to personalise your pitch. Do your research on the investor and see if you can tailor your podium performance accordingly. Create snapshots of your business, mentioning not only where you’re coming from but also where you are and need to go. Show them a clear roadmap with milestones and pepper in their involvement in making it happen for you. This not only gives them the inception idea but also tells them about your customers and how other investments have played out so far. If you don’t have a working prototype yet, make sure there are mock-ups that fuel your investors’ imagination.
Showing your vision in the physical form can make your pitch exponentially effective. Your business needs to come to life with a prototype and act as a great insight-finding experiment, as you listen to your investors interact with you as customers as well. It opens their mind and helps you build a relationship with your investors beyond funding rounds. It also shows your position on willingness to learn and being open to ideas. Remember, you’re being evaluated for everything along with your pitch.
The A-team, always!
For most investors people come first, so make sure you talk about your team that is breaking the concepts of night and day to help you achieve your vision. At the same time, talk about the reinforcements you need to fill a need gap in the positions. Talk about the key talent you’re on the lookout for. Ensure that if the investors want to know more about your business, they have questions for you that you can answer.
How are you going to make money?
Now that you’ve told them what you want to do, your product, it is time to tell them that the market is waiting for something like this. Reflect on your revenue model which is the most important part of your pitch, and back it up with numbers. You’ll know how invested they are if they whip out their calculators and hit the keys to see how to make your life easier. As the founder of the company, it is your job to show the investors that you know you can steady the mast in case of a storm. Clearly map out how much you need, why you need it and the intended outcome you’re assuming. Your audience, skeptical by nature, will be more inclined to trust you when you assert your pitch. Investors play matchmakers of sorts, helping you in identifying the right fit even if they themselves don’t think it’s the right time for them, but only when you have clear foresight.
Exit strategy talks
Your investors will always have an eye out for the end game. So show them that you’ve done your due diligence. Tell them what your immediate plans are for your company. They’ll be able to mould their ideas according to your goals five years down the lane. The transparency you practice will help you cultivate a network you can leverage at a later stage.
Irrespective of what happens after the pitch, the feedback that you will receive during it will be the golden rule for your eventual success. In the words of King Khan ‘Shayad yeh tumhare zindagi ke sab se khaas (sattar) minute hai. Aaj tum aacha khelo ya bura khelo, yeh (sattar) minute tumhe zindagi bhar yaad rahenge.’ (Maybe these minutes will be the most crucial minutes of your life. So, whether you play a good game or a bad one, you will always remember this time).
Go on, it is your time!
