When you pitch your startup idea to an investor for the first time, you want to try your best to make them understand why your idea is a better investment as compared to the tons of ideas he has already heard. You are principally selling yourself (and your team) and trying to make him feel as confident about your idea as you are. So without further delay, here are the most important 7 tips that can help you up your game! Read along…
- Passion is the Key
Think about it, your startup idea is your brainchild, and if you are not passionate about it, the investor won’t perceive you as a promising investment. Don’t go over the top, though; it is one thing being passionate about something, and completely another thing to let emotions get better of you.
- Time is The Essence
Whether you are talking to your potential investor in person or on Skype/FaceTime, your listener will tune out if you don’t come to the point quickly. Investors aren’t short of brilliant minds trying to pitch their ideas, but they are almost always on a short leash when it comes to time. If they don’t have your attention in the first 20 seconds, you need to do your homework again.
- Stay away from the Obvious
They know you have an idea, and they know you need their money. What they don’t know is why they should trust you, and what makes you a promising investment. So tell them what matters the most, and leave the obvious where it belongs: out of the discussion.
- Don’t Beat Around the Bush
Mention the most crucial points in the beginning. If you don’t come to the point soon, you’ll lose the 20-second window we mentioned earlier. Use this opportunity to tell everything that grabs their attention in the first go. Ask them for their advice when you need it. Mention any potential risk you see, chances are investors have already seen the plot-hole, and they are waiting for you to speak about it, or realize that there is a plot-hole.
- Analogies are Good
Use relevant product references when talking to your investors. You can’t say, “We are Rocky Balboa of the Digital Marketing”, but you can probably say, “We are the Jedi of the Virtual World”. Remember the person sitting in front of you is serious about his money, and he wants to see you as a serious person as well. Figure out the thin line between deadly serious and a witty-and-wise entrepreneur. You know which one you want to be.
- Don’t act like a Thesaurus
So you got a good vocabulary? Good. And you want to flaunt it while talking to your investor? Not a good idea. The beauty of communication lies in its simplicity. Steer clear of the jargons, and use simple yet effective words.
- Make Reasonable Comparisons
Everybody can find a loophole in the biggest firms; after all, it’s in human nature to pinpoint faults in others. Doing so won’t help you in making your investor believe in you. What you need to do is tell them how you are better than your real competitors, and again, make correct references to make a logical and rational point.
You are selling a vision, and your audience should feel the same enthusiasm when listening to you as you have while talking about it. When you believe in your dream, and you know you can do it, they will listen to you, like you, and choose you.