Appealing to people can be quite difficult. You need to be strategic, affable and easy going – it’s exactly how pitching for a business works. Getting the investors to buy your idea comes with tact and skills, your confidence and persuasion level must be unrivaled.
So, you already got a chance (or several chances) to show how profitable your business can be, but are you aware there are certain mistakes you need to avoid?
This short list of recurrent mistakes can help you avoid the next pitfall while pitching for a business.
“When you pitch to an investor, don’t sound desperate.” Says Raul Davis, CEO of Ascendant Group.
“People like to invest and be connected to winning projects. If you come off as though this investment is the only way for your business to move forward, it seems needy and unattractive to many investors, and can set you up to be taken advantage of. You’ll end up giving away more equity then you should.”
Pitching To The Wrong Investors
Before you decide on meeting these people, you at least know their importance. They need to be important and capable enough to help you realize your business idea or save your business. You should take out time to find out what type of investments they make and what interests them. Knowing this would help you save time and adjust your presentation to suit their taste.
Talking Down On Competitors
This is a clear sign of incompetence. The first mistake is stating that the business has no weakness and no competition. Investors usually know that young businesses are vulnerable so stating the otherwise isn’t advisable. It shows you don’t know your niche well enough or you’re just plain dishonest.
Failure To Have a Structure
“When pitching an investor, you’re not just pitching your great idea.” Your personality has a whole lot to do with your idea. “A relationship with an investor goes beyond the ROI and it’s important to focus on selling yourself as well as your business plan.” – Raul Pla, CEO & Founder of SimpleWifi.
Investors are most likely to be very strict on time. If an investor is constantly checking the time while your presentation is going on, then there’s a problem. Providing excessive information and not moving to the end quickly only jeopardizes your chances of winning. Focus on the key points and don’t try to over-impress.
Getting Mad Over Criticism
Serious investors will definitely ask questions, questions that may sometimes hurt your emotions. The fact that they ask questions means that they’re thinking about your offer and want to know how best it could work for both parties.
You don’t have to take the questions or feedback personal, provide polite answers and if you can’t, walking away might be your best option.
Again, their criticism might be a good one. They may have thought about your idea critically and highlight loopholes you didn’t notice. This gives you an opportunity to rectify your mistakes until you get another investor (or the same one).
Pitching Without Direction & Long-Term Strategy
It’s not enough to have a plan for the now, they also need to know what they should expect a year from now. The investors want to know your expectations, what your company is aiming at, and how you plan on getting there from now up until 3-10 years.
Messing Up an Impromptu Pitch
You never know who you can run into in the elevator, at a restaurant, a get-together, or in your office. Some investors might just show interest when you least expect and give you 10 minutes to blow their minds.
Make sure you’re always ready!
One major mistake entrepreneurs make while pitching for a business is letting rejection stop them. Not everyone will be interested in what you have, it’s a room for improvement and even a better offer if you’re lucky.
However, there are other overlooked mistakes you need to avoid. Pitch Skills can help you with 30 mistakes to avoid.