As I mentioned in part 1, your pitch should address 'where, when, why and how' of your business. This is imperative when pitching to investors. Here are 5 more tips to improve your chances of closing the deal.
6. Confusing/Bad answers to questions
Workout your pitch with advisers or friends so that you can give precise answers to questions shot at you. Investors will occasionally shoot hard questions at you. They want you to think on your feet, instead of carrying your answers forward in the presentation. If they ask questions, it means they are engaged. So prepare for those questions.
7. Using cliches in your speech
Using cliches in your pitch communicates a lack of creativity and stale vision to your potential investors. Unless you have proof of your claims, try not to make broad and vague declarations of what your product can achieve. Most entrepreneurs think it's fashionable to use these terms but investors want realistic answers. Anything considered cliche would be vague.
8. Lack of knowledge about the investor and their portfolio
An investor expects you to be aware of what they have. It facilitates conversation, plus it shows that you were prepared enough for the meeting. Conduct some background research on who will be interviewing you.
9. Not understanding the potential risks of your business
As an entrepreneur, you're tasked with the burden of understanding all the potential risks of your business venture. You have to know the key risks of your business, legal risks, technological risks etc. Then you have to know your mitigation plans for those risks.
10. You cannot tell how you will invest capital and return duration
If you cannot answer this question, it is a guarantee that you'll fail. In an investment venture, there has to be capital and returns interplaying. You must show them a realistic way their investment capital will be used, plus how long it will take to pay them back.
In conclusion, as a serious entrepreneur, you will need to be smart when answering questions. It can be difficult to secure investment capital from investors. Qualifying for an interview is not easy, but it shows that you're headed towards the right direction. With these tips, you can be prepared for the challenge. So, are you confident enough to face the task ahead of you?