As a venture capital firm, we are constantly approached by would-be entrepreneurs. In dealing with these individuals we have over 20 practical tips we have gathered over the years and included in The Idea Guide. Here are six tips below:
1. Have a quick summary ready to open your pitch
In a movie, a good script presents the plot right at the beginning so the audience knows what the next 2 hours will be focused on solving. Nothing frustrates an investor more than an entrepreneur who is well into their presentation and still has not clearly communicated how their business solves a problem. Pretend you are at a cocktail party and need a short summary of what you do, who you do it for, and why. Start with the problem you see in the industry, and make slide two your solution to that problem in a clear, concise manner. Now your audience has context for everything that follows.
2. Emphasize your experience in the industry
Entrepreneurs with direct experience in an industry with a business idea that rethinks a product, service, or process in that industry are considered “credible insiders” and their value proposition worth the time and effort for an investor. This can be done by way of work experience, volunteering, training, networking, etc.
3. Focus on real results
Better to start something on a shoestring to demonstrate potential, than repeatedly pitch an untested business plan. Real results, however small, are better than theory.
4. Your own investment matters
Why should an investor participate if you are afraid to put in your own money, or that of your friends and family? Many investors refuse to play if this financial commitment is not demonstrated because it makes it too easy for you as the entrepreneur to walk away.
5. Be ready to go off script
Rarely does a pitch happen slide by slide without interruptions for questions. Questions are excellent opportunities to show your knowledge, so don’t be afraid to address the question by flipping to another slide to explain. You may not have a slide ready, so just answer it calmly and resume.
6. Have several examples of real customers facing the problem
It is amazing how many pitch meetings require an investor to proactively ask “Can you give us an example of how this would work”. Have ready examples, even if they are made up. Communicate specific examples of the product or service in use and how it can solve a particular client’s problem. This will allow you to highlight the “before” (problem) and “after”(solution impact) of your product or service.