With more and more people taking the bold step to become entrepreneurs, there is a greater demand for useful advice and information about starting a business. As a budding entrepreneur, the more preparation you put into launching your business, the greater your chances of success. One of the most important steps in gaining financial support for your business is The Pitch. The pitch is a presentation of your ideas to a potential investor or financier. Below are a few pointers that will help in perfecting your pitch.
Do Market Research
Market research involves gathering information from your potential market i.e. the likely customers for your goods or services. It includes studying your potential target consumers and understanding their likes and dislikes, whilst observing distinctive trends and patterns in the market. Diligent research will give you better insight into your target market and make you more confident about achieving your goals. By presenting detailed evidence that you have conducted thorough research, this will demonstrate to potential investors that you have a good understanding of the market and reassure them that you know what you are talking about.
Prepare detailed financial projections
Investors will also want to see detailed figures regarding the income-generating potential of your business. They will expect to see comprehensive projections of all costs, revenue and cash flows. They would also want to know what is in it for them, when will the business realize a profit, and what will be the return on their investment. It is important to be honest about start-up costs and your ability to deliver. Requesting large sums of money without indicating the purpose for which those funds are intended could be a turn off to your potential investor. On the other hand, if you understate the amount of money you need to try and make your pitch more attractive your business could later run into cash-flow problems and eventually fail.
Perfect your presentation
Even with an excellent business plan and a product or service that you have confidence in, presenting your idea can be a nerve-wracking experience. Here are a few pointers to keep in mind on the big day.Practice makes perfect. Go over your pitch with family and friends. Practice it in front of your mirror.
Organize your talking points. Prepare flash cards with your main points so that you can refer to them during the presentation. Your delivery should be thorough but as succinct as possible.
Body language is important. Practice maintaining good posture and tone. Even if you feel nervous, it is important to maintain an appearance of confidence.
Anticipate questions. Have answers prepared in advance for questions that are likely to arise. Prepare backup documents and data to support those answers.
Following these guidelines will take you several steps closer to realizing your dream of a successful business. It cannot be overstated how important it is to do your market research thoroughly, and to be fully prepared with detailed financial information in your presentation if you want to land an investor. Remember, you need to ensure that you come across as knowledgeable and confident on the big day. Good luck!
