A few months ago, I had a lovely couple who was trying to pitch me a new venture. One thing I knew for sure they weren’t prepared or had the right pitch. I asked them to provide me with an executive summary, but unfortunately they weren’t prepared with a business plan and expected me to fund their company?
Verbose presentations and lengthy explanations will not impress investors, and most likely will turn them off. Present your business in a manner that’s short, sweet and to the point. Investors need to be confident that your business will attract and retain customers. So how are you going to perfect your pitch and engage your investor?
I suggest you execute, execute, execute. Inspire confidence with facts, not fiction. Most investors seek out low-risk businesses with proven managers that are as close to guarantees as possible. Find ways to test your business’s viability on a shoestring budget, and turn your idea into a functional business before you seek investment.
Excite investors about your big picture, but be reasonable and responsible. Show investors that you have a grasp on reality with three versions of financial projections: best case, moderate case and worst case. Base each of these models on facts, past and present performance data, industry and competitor analyses and a series of well-thought-out, defendable assumptions.
My company Market America was not built overnight nor was Rome. Before asking for millions of dollars to fund 50 divisions and hundreds of product lines, prove how well you can create, manage and fulfill demand for a single product. Demonstrate that your business can crawl before you say it can walk. Perfect your marketing tactics, sales strategies and operational procedures. Investors appreciate companies with sustainable step-and-repeat business models that are poised for exponential growth. Remember, even Google’s success is based on a single product.
Choose not to be the smartest person in the room. Know what you know, know what you don’t know and find the people who know what you don’t know. Build a team of credible experts. The smartest leaders in the world are those who surround themselves with smarter people, learn from them and take this knowledge and apply it to your company.
Are you an inspiring entrepreneur send me a tweet if you need more advice @lorenridinger
