Pitching to potential investor or customers can be nerve-wracking, and we recommend getting as prepared as you can. Start with these 7 essential tips for making a small business pitch.
How to pitch your small business to investors
- Know the key components of your business. You should be able to describe your business model, explain what unique need your small business fills, who your competition is and your marketing and sales plan – to name a few.
- Know your basic financials. You should also have a basic understanding of your business’ financial elements. For example: yearly sales (volume and dollar amount), cash flow projection and net worth.
- Research your potential investor. Familiarize yourself with your prospective investor as much as possible. This will help you accurately address what they’re looking for. You’ll also know what issues may arise or what they might ask.
- Be concise. You might have five minutes to make a pitch, or you might have 30 seconds. Prepare a few pitches of varying lengths that get the point across and still sound compelling.
- Put yourself in your investor’s shoes. If you were being pitched to, what questions would you ask? Make a list of these questions to help you become better prepared.
- Practice. Go through your pitch in front of your business partners, trusted friends or family – or even in front of your mirror. Worry less about memorizing your “speech” and more about pinpointing strengths or missing pieces. Some cities even have networking groups where entrepreneurs can practice their pitches.
- Act natural! Making pitches is a lot like public speaking, but it doesn’t have to be terrifying. Just be professional, friendly and try to relax!
Want more tips for pitching to investors? Check out the 6 common questions investors ask in a pitch.
