your password has been reset successfully, Please login again.

How to pitch an idea to an investor?

Being an entrepreneur you never know when the opportunity comes to pitch an investor so it is essential to be prepared in advance.
BY Akshay Arora
Feature Writer, BusinessEx
Nov 22,2017

Every startup or business needs an investor to enhance their operations but the difficult part comes in when an entrepreneur needs to pitch in front of Investors. Pitching is a tricky part, if you know what an investor wants from you then only you can close the deal. In order to prepare a perfect pitch you need to know how to make a pitch but thats another thing, lets find out the essentials on how to pitch an idea to an investor.

  • Be clear and confident in your idea

    The key when pitching your idea is be confident in what you have made and your idea. You dont get chances every day to pitch in front of investors so it is better to do right when you have the opportunity. There is no need to panic just be ready to show them why you are a good investment opportunity.

  • Tell them the problem that your idea will solve

    Start with a small introduction to who you are and what your business is. Then this is the most important part when you need to make them feel the problem that is there in the ecosystem and your idea is the best solution to it. It is important that they understand the need for your business.

  • Create a presentation and video

    Now is the time to win the hearts of interested investors, show your presentation to investors. Make sure that the presentation is not detailed and contains more infographics of your business as well as the industry you are catering to. A presentation could be in video format as well and you can also show the use of your product by someone in the video, this is just a plus point to attract investors. No one likes to read much so it is better that you keep on explain them as well and keep it brief.

  • Show your product

    Once you made them clear about what your product is, then just show them. If your product can be physically shown then whats better to show its uses right there otherwise if online you can always show a prototype of it as well.

  • Stay short while explaining business model

    Its time to explain about your business model while covering all the aspects like what is your go-to-market approach, business plan, manufacturing process, promotion, you want it to be a brand or not, how much funds you need to do all the process, objectives, mission, vision, etc. This will help you analyse whether they are interested or not.

  • Answer the Why you? question

    This is the most important question, as even being a rookie you made some mistakes the answer to this question can bring back the interest of investors in you back again. You need to prepare how your business idea is unique than others and how this is the best solution to the problem existing in the environment.

  • Explain who you are and how you got interested in this idea in form of story

    Its time to get a little personal, start like a story and try to motivate them on how you faced this problem and decided to solve it with your business idea. Keep it short and simple as there is no need to go into the flow and start making up the facts on your own. It is essential that they find you interesting.

  • Show them how their investment will bring a win-win scenario to both parties

    First, tell them whether you want funds or seeking partnership so that there is no doubt about it, then tell them how much funds you need and how you are going to use these funds. Now tell them the possibilities of generating revenue. If you give them an estimate and they like the figure then you have the high chances to close the deal right there.

  • Be ready to handle their questions and obligations

    Dont think that just telling everything will get them ready to invest in you. Its the time when they ask questions and you need to give them the right answers. So start analysing their needs and answer accordingly. To know what kind of questions they ask than read the link below:

7 Questions Investors asks from Entrepreneurs

Please add your Comment
SIMILAR Articles
June 18, 2018
With changing technology, it is now possible to start almost all kind of business from home sooner t ...More
By Sanjana Surbhi
June 15, 2018
One of the many reasons for failure is that the entrepreneur themselves are unaware of the mistakes ...More
By Sanjana Surbhi
June 14, 2018
To manage an effective team, you must encourage your team and help them out with proper solutions ...More
By Sanjana Surbhi
June 14, 2018
Employees are the wheels of all the companies. You need to keep them motivated and for that you have ...More
By Sanjana Surbhi
June 13, 2018
Social media, a source of entertainment and an idea of time pass is now becoming an important tool o ...More
By Sanjana Surbhi
June 12, 2018
India is the third largest startup economy in the world but only 9 percent of the startup founders a ...More
By Sanjana Surbhi
June 12, 2018
Does work-life balance help people to be more productive. Work is definitely your priority but don’t ...More
By Sanjana Surbhi
June 11, 2018
Small businesses need proper guidance and patience to deal with problems. To fix these problems they ...More
By Sanjana Surbhi
June 07, 2018
Running a successful restaurant business is becoming a great challenge for the owners. But hard-work ...More
By Sanjana Surbhi
May 31, 2018
Your location must be on top in your priority list. You need to consider certain factors while findi ...More
By Sanjana Surbhi
May 30, 2018
Small and Medium Enterprises, if they want to survive in the market then they must start using digit ...More
By Sanjana Surbhi
May 28, 2018
After setting up a business, you start to think about the ways to expand it by planning growth strat ...More
By Sanjana Surbhi