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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

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