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4 Tips on Pitching Your Idea to an Investor

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4 Tips on Pitching Your Idea to an Investor

By Startup Valley (508 words)
Posted in Entrepreneurs on August 31, 2012

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You’ve got an idea that’s revolutionary. You’ve come to the conclusion that the pros of starting your own business outweigh the cons, and you’re ready to put your idea into motion. You’ve decided to take the road to entrepreneurship – this project is your passion and you’re willing to take financial risks to make it happen. However, when determining the overhead costs, or how much money it would take to simply operate your business, you’ve realized that you may not be able to manage the payments needed. You’re going to need an investor or two to secure the funds needed to execute your project.

Whether you’re looking to pitch your idea to a venture capitalist (VC), an angel investor or a crowdfunding source, you’re going to need to know the best way to get these investors interested in your idea. Here are four helpful tips to keep in mind when pitching:

K.I.S.S. (Keep It Simple, Stupid!)

You’ve heard this acronym many times before, but I can assure you this: It’s much more than an overused cliché. Although, initially, investors are the only ones that need to understand your idea, the world will eventually have to understand your idea. Stay away from too much technical jargon and simplify your idea so that it’s easiest to understand. Also, stop for questions and allow investors to make sense of your idea if they haven’t already.

Support your outrageous predictions

Come into the presentation ready to back up any outlandish statement you might make. Your business will have over 100,000 members by the end of Q2? That’s fantastic. Investors WILL ask how? The truth is, anyone can say he/she will take over the world, but with no elaborate plan of action to show them how, you’re not going to convince people (in this case, investors) that you will in fact do so. Make sure your details and plan of actions are both solid, and confidently explain them to the people you’re asking to give you money.

The problem first, then the solution

If you haven’t already, you must identify the problem. Make this the first thing you do. Explain what the problem is, then transition into how you can solve that problem. You must make investors feel that the problem is so great, that the average consumer will purchase your product or utilize your service out of need. Also, if investors don’t believe that there’s a big enough market, they most likely won’t be investing. Make sure you spend some time focusing on the problem first, before you jump right into how your business is the solution.

Have a personality

Although most people tend to be dull and serious when asking for money, it’s easier for investors to get behind your idea (and stay engaged) if you have some sort of personality. Lighten up a little. Investors see too many boring presentations – how will yours be different? Just be yourself and engage investors by encouraging them to ask questions.

Make sure you keep checking our blog for other entrepreneurial articles!

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