LET’S GET YOU THAT INVESTMENT!
A QUICK GUIDE TO EFFECTIVE PITCHING FOR INVESTMENT.
You come up with an idea or product that you feel is the next best thing after toast bread. The balance on your savings account screams ‘help!’ and you very well know that if you’re going to get your idea off the ground, you’ll need capital. You figure you need an investor to pour funds into your company. Below is a list of some of the important things you need to have in check as you get ready to pitch.
- Have a good grasp of your product/service. Make sure that you can easily (in a comprehensible manner) explain and demonstrate what the product does or how it works. If possible, always have a physical representation of the product. It is important to an investor to know and have a feel of the product/service. They need to engage with the product so have a prototype.
- State your offer at the beginning of the pitch. State the amount you need and the percentage/stake of equity you intend to give (where applicable).
- Make your pitch brief but concise. No one wants to sit and listen to a long pitch (except your parentsJ) Try to make sure that you talk about the fundamental aspects of the business without going into too much detail. If the investors need to know or clarify something, they’ll ask. A long pitch may reflect that you don’t really understand your product. Remember, simplicity is the ultimate sophistication.
- Have the necessary numbers/figures at your fingertips. Numbers such as your valuation of the company, your gross, direct cost of sales , net worth and your yearly projections are necessary .Make sure that you can back up your valuation and projections.
- If you’re already in production and have retailed your products, be prepared for questions such as ‘What does it cost you to make the product?’ How much have you sold so far?’ ‘Have you got back your initial investment in the business?
- Make sure you illustrate to the investor how they’ll make a return from your business and your projections on how long it will take to get a return on their investment. Remember, most times investors are all about the money!
By Rachel Nderitu