When it comes to running a successful business, funding can be key. However, securing a deal can be complex. For many new entrepreneurs the beginning of any venture is a meticulous business plan but it is the investment behind this business plan that brings an idea to life. Getting the funding that you need will help to bridge the gap between your idea and the building of a business that is successful.
A business pitch means that you need to be able to put your ideas to a stranger in order to get them to part with thousands of pounds. It is little wonder therefore that many people get flustered during this process. It might be daunting but with the right preparation and planning there are ways in which you can make your pitch easier.
Pitch your SME personally
It can be tempting to send a generic e-mail to everyone however this is less effective. With so many entrepreneurs vying for capital you need to ensure that you stand out from the crowd. By far the best way of making contact with any potential investor is via their network, if you have this type of contact.
When this is not possible, the next best option is to create a personal connection and potentially build a relationship with an investor. Do your research and make sure that your initial pitch “speaks” to them.
Most investors and fund managers will receive huge amounts emails from entrepreneurs every week looking for funding. Those who stand out from the crowd those who are persistent and don’t give up straight away. Be aware however that there is a very fine line between being persistent and harassing. It is important that you do not cross this line.
Offer a story
Whilst pitches might be all about spreadsheets charts and key information, they don’t tell an investor about you and about your company. This is where you can create a better engagement with your audience. Make your business memorable by telling the story, talk to your investor about your history, where you see your business going and what inspired you to start your business. This will help to show the person behind the pitch.
Always be honest with potential investors. This can involve talking about any failures you have had as well as any experiences this will show experience and lessons learnt.
An investor will be putting their trust in you and hoping that your business venture will be fruitful. Be honest about everything you tell them and ensure that your figures are correct.
Know your sector
Find out as much information about your sector as possible. Your investor will want to know that you understand your industry. This could be things like market size, your competitors and even what your audience looks like. All of these are important questions that you should find out the answer to. When it comes to your industry you need to be the expert in the room.
Be realistic that this means you will need to do your research about how much money you actually need. Do not overestimate how much money you will need or underestimate neither of these strategies is likely to get you the investment you need.