Best Tips for an Effective Startup Pitch
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Once you have a great business idea and have put in all the effort for drafting an effective business plan, the next step for you is to pitch your idea to investors and get your first bite of business capital. This can be a rather stressful experience, though. On this page, we will help you make your next startup pitch a complete knockout success.
Our 10 Best Tips for an Effective Startup Pitch
To put things plainly, investors tend to look for a consistent set of things in a startup pitch. For starters, remember that investors will only invest if they are convinced that they will profit because of your business. Even if you have the best idea in the world, you need to relate it back to the investors and show them how they will profit.
Here are 10 of best tips for an effective startup pitch:
1. Let Your Passion and Confidence Do Most the Work
Confidence and passion is something which just naturally shines. You either have it or you don’t. These are also something which investors will immediately look for and notice. If you are not passionate about your business idea, how will you expect your investors to jump on board?
Your level of confidence should not only be present in your tone of voice, but also how you project your idea. If you are confident that your idea will lead to results, it will be evident in your tone of voice. If you are confident in your idea, it is much easier for others to also see things your way.
2. Draw Interest in the First Minute
People tend to have short attention spans. Especially when it comes to business matters which they don’t believe are relevant to them. This is why you need to focus most of your startup pitch on the first minute. Even better, the first 30 seconds.
Your first impression means a lot. Many people even judge you and make a long-lasting opinion of you within their first seconds of meeting you. Make the first minute of your pitch count!
3. Compare Yourself to Successful Startups
You probably came up with your business idea as a result of inspiration from others. You might even base your startup idea around the failures of other similar businesses. Make the inspiration of your startup idea clear. This is a great strategy for helping your investors understand who you are and what your startup hopes to accomplish.
4. Be Unique and Original
Every single startup pitch in existence has used a power point presentation and an regurgitated overly-rehearsed speech. Well, not every single pitch, but you get the idea! Don’t create your pitch using the boring same old same old. Be unique and original.
This isn’t a college class. You didn’t come to lecture students on a business pitch. You came to make legitimate connections and to find investors. Act like it!
5. Explain How Your Product Will Make them Money
As we briefly mentioned, the absolute most important thing in the back of the investors’ mind is the profit. How your startup will make money, how much money you will make, if you can generate a ROI, and so on.
Once you have drawn in some interest, you need to bring up the money. This is what investors want to hear about. They won’t invest in your startup if they aren’t convinced that they will benefit from it.
6. Show Them Your Target Customers
In order to convince investors that your startup will be profitable, they need to know who will be interested in it! Show them the demand that exists in the market. Demonstrate the value your startup provides to the market. If investors aren’t convinced that you have a large range of potential target customers, they will absolutely not invest!
7. Explain How You Will Market Your Product
Having the valuable product or service is one thing. Then, you need to have the customers ready to buy. In order to get the customers, though, you will need to do some marketing! Even the most successful in the world needed to start from somewhere!
Once you have your business up and running, you need to make it so that potential customers will find you. If you don’t have a marketing plan, then it will be hard to get your startup out of the sandbox. Investors will also immediately lose interest if they see that you don’t have a marketing plan.
8. Dress Up
How you dress should be a reflection of how serious you are about yourself and your startup! If you show up raggedy worn down clothes, investors will immediately notice. In fact, this will show that you are desperate and needy.
You need to project yourself as an entrepreneur with your head on straight. Even if you are poor, invest in some nice formal clothes. With just one successful pitch, you will make back the money you invested on new clothes.
9. Keep Any Prior Promises You Make
Investors tend to get a little frustrated by those who fail to uphold their commitments. If you promised to start your pitch at 8:15AM, arrive at 8:00AM. Go above and beyond. Take some initiative and make sure that any prior commitment you made is upheld, and then some.
Show investors a little bit about your character when you do your pitch. Show them that you are trustworthy and honorable. This is something which means a lot. Especially for investors who want to understand the face behind the brand before investing.
10. Don’t Go Longer than 10 Minutes
As the saying goes, time is money. When you do your startup pitch, you will be dealing with people who treat time as an asset. If you drag on and on during a startup pitch, potential investors tend to get a little irritated. This won’t help you with your pitch. Not even in the slightest.
Even the most innovative and unique business idea should be able to be explained in less then 10 minutes. After all, you should also have a detailed business plan ready to hand out, which explains much more precise details for those who are actually interested.
All Set for Your Upcoming Startup Pitch?
Once you finally get the capital for getting your startup off the ground, you will need a trustworthy financial institution to help you out on the banking and expense tracking portion of your business. Here at Penta, we pride ourselves on offering a less-bureaucratic and startup-based banking service with our customers at the center of our focus.
Penta accounts can be opened up within one day after submitting your application. We offer corporate cards for all employees, benefits based just for startup owners, and assistance with bookkeeping. Check out what a Penta Business Account can offer today!