Before you prepare your startup pitch
You are ready with an amazing startup idea. But you do not have the capital and you want to approach an investor. One of the key factors in this process is your startup pitch or the presentation that you prepare to woo the investors.
So what do you need to keep in mind while preparing your pitch? There are several factors that the investors look into. The importance of these factors vary from investor to investor. However, there are some common points that make your pitch more effective.
1. Keep your startup pitch simple
The investors are looking for a business proposal and no beating about the bush. No verbose or roundabout way of expression. Rather, keep it simple and straight. Get to the point of explaining what problem does your startup idea seek to solve and how instead of dramatic suspense.
2. The duration of your pitch
Carefully plan your pitch so that it makes the most of the allotted time. Do not bore the investors with irrelevant or vague information. The investors are there to see a solid business and not to enjoy a speech. Plan the pitch in a way so that it covers important information and also keep in mind the time allotted for questions.
3. What is your startup story
Tell your startup story in a simple yet effective way. The human angle in the story helps people remember it. Tell the investors your motivation behind your startup idea. That helps in understanding your conviction. Try to incorporate data into your story.
4. Don’t lose focus while telling your story
Don’t get carried away while telling your startup story. Don’t forget that your objective is to gain confidence of the investors.
5. The problem that your product or service solves
What problem does your startup idea solve? How big is the problem? How relevant is it? Will people pay to solve that problem? And how are you going to solve it? These are the key factors investors will look into.
6. What is the uniqueness of your product or service
Why should your investor take interest in your product or service? Why is it different from anything else available on the market. You need to be able to address these questions in your pitch. If you have a license or patent you should definitely highlight.
7. Who is your target customer?
Tell the investor which segment of the market are you going to target. They must be convinced about your target customers specifically in terms of age, geography etc. This helps in boosting confidence your startup.
8. Numbers, numbers, numbers
Vague speculations do not help. While pitching for investment you must be ready with your numbers. How much money your startup needs to raise, your current overhead, break-even etc. Bur do not clutter too many numbers in your presentation. Put some key numbers in the pitch and keep other data handy so you can present them on inquiry. Displaying how good you are with numbers also show how well you understand your industry.
9. YOU & YOUR TEAM
Before committing investment, the investors would like to know about your and your team’s details. Who are you ( you and your team)? What qualification do you have to solve the problem? What is track record? And most importantly do all the members of the team gel together to achieve a common goal or are a bunch of people at perpetual conflict with one another.
10. Show your enthusiasm about your startup
The investors need to see the passion and enthusiasm. Don’t fake it but try to express your inner enthusiasm. Many people feel shy to express their emotions yet in certain times it is very important to do so.
