- Daily Zen
To make a successful pitch for investment, you should have the ability to sell value rather than the product.
Most entrepreneurs need an infusion of capital at some point of their business cycle. It may be just at the beginning if the idea is capital heavy or for expansion, once you have moved on from the home or garage manufacturing mode.
So how do you manage to get future investors interested in your idea?
A short and quick example would be the Shark Tank series where heavyweights are persuaded by people with ideas and businesses to invest with them and in a set amount of time. Now translate this to a 5-minute slot and what all you need to do to pitch your idea to a potential investor or investors.
There are many names given to this kind of pitching: the elevator pitch or the rocket pitch or let us keep it simple and call it the five-minute pitch.
So what all you should cover in these five minutes?
Be clear about what your idea or business opportunity is. Why are you selling it, to whom are your selling and how are you going to go about it? In short, the idea, the customer and the sourcing or manufacturing of your idea.
What is the market scenario? How big is the market, can it accommodate you? What gap or niche you are fulfilling in the space? Is it scalable or duplicable? These are basic concerns. If it is duplicable and a one-time idea with no future vision then you lose your audience.
Be clear about your business model. Your cost of manufacturing and what are you going to charge your customers for it. Do you have the price balance?
The profit it will generate. Your capacity to produce and meet the customer demand is also important. Your customer model, what you have at present and what you intend to build up to has to be clear. If you already are selling on a small scale be clear about putting a valuation on your company. Keep it a viable realistic number based on you selling, customers and market scenario.
Another important aspect of this five-minute pitch for investment is to choose the people you want to sell it to with care. They should be from the industry or related and knowledgeable and somewhat and should have an established interest in investing in new ideas.
After clearly putting down all possible questions that can arise concerning your business, group the questions under 5 possible headings like idea under it how it fills a gap, your uniqueness, any patent requirements, etc; customer/ market; business model under it sourcing, scalability, costing; future plans; valuation.
When you are making a presentation for investment, it means you are asking for money, a certain number. Numbers are very important and impressive in your investment pitch. Do your proper market research. Be clear and factual about what the market size is, what you have invested, or need invested, why you are asking for that particular amount and what you intend to do with it.
Now practice the delivery of this investment pitch in under 5 minutes in front of a mirror and family and friends.
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