We have all heard of the amazing show called Shark Tank, and are all aware of how viscous and terrifying investors can be. With your companies future essentially in their hands, pitching a business can be both exhilarating and terrifying. Below are some tips to help you stay alive while in the Shark Tank during your business pitch.
Get To The Point
The first important step is to get to the point. Your investors are eager to find out what their future investment might be in, and you lingering on and on about irrelevant subject will only draw them away from a potential investment. If you are able to get to the point and keep them interested, you have passed the first phase. This type of pitch is often times called the “Elevator Pitch,” meaning that it is short enough to be given during an elevator ride. This means that you do not have much time before you lose the investors interest, so make the pitch as exciting and engaging as possible.
Be able to give as much details as needed during your pitch, the most information you know, the more impressed they will be. Marketing strategy, business model, possible bumps you may hit along the way and your competition are important to include during your pitch. This will show the investors that you know what you are talking about, and are fully committed to letting them understand every aspect of your business. The more open and honest you are with them, even when it comes to your mistakes, the more they will trust you and want to partner up.
Do Your Research
The investors are going to ask you a series of questions. Whether it be how much equity they get, to why they should support you, what you total income and profit has already been, or what your estimated sales are, you should be ready to answer each and everyone of their questions. If you are not knowledgeable about your own business, then the investors will lose all trust and hope in the product you are trying to sell to them.
Source: 24 Slides
When giving your pitch, the investors do not want to see a shy, timid person in front of them. The more confident you are, the better. But do not come off as cocky. This will not go well with your investors. They want to know that you are a good partner for them, and that they can ask you anything they want about your business if needed. If they feel that the relationship is not there, then your pitch is over. But do not be over confident. When giving information, make sure your facts are right. If you say your total profit for the following year is estimated at $4 million, then give proof and facts to back it up. Being overly confident will not get you your estimated $4 million, it might not even get you an investment.
You Are Not The Smartest Person In The Room
When an investor makes a comment or two about why you are doing something wrong, do not fight them. In the end, they have the money that you want and the backing that you desire. You may think you know more about this area because it is of your expertise, but you do not. Do not act as though you know everything, you are not the smartest person in the room. Even if you do not believe so, allow the investor to think that they know better than you, because without them, you will not make it far.
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It takes time. Your business will not suddenly be the most popular one out there all within a few months. Be patient and realistic. Show your investors that you are aware that this will take time and hard work, and you are willing to work extremely had and diligently in order to see progress. Show them that you are aware that the company might not make a profit for a while, and that is okay with you because that is not the sole reason you are doing this.