The journey here is going to be the most challenging because selling your idea does not only require a good idea but the way one chooses to present it. The key words in this article would be: short, concise, easy, interesting, and convincing. So let’s start away step by step in order to get you ready for the big show!
PITCHING: To get you a real kick start in your presentation, the coming point is really important. Yes! Rehearsing. Rehearsing your presentation does not only boost your confidence but leaves a great impression on your investors as it makes them believe that you are not confused regarding your plan and company. And the first person to have faith on your business plan is no one else but YOU. So a powerful seeding is a must in building a strong pitch if your intention is to get the ball in your court in the very start of your presentation because usually the decision is made by the investors in the first few minutes of the presentations only.
Some ways to build a powerful pitch
· Recite your tale: This needs you tell the story which explains the problems that you see existing in the current scenario. Try if you can get an example to which the audience can connect to.
· Offer your product: This is the time for you to be the hero and solve the problem narrated in the last scene with your product. Show them how your product is the ultimate savior of this problem and unique in its nature.
· Your trump card: In the start, you begin with establishing a decent rapport with your audience. The best way to sound convincing is to flaunt a bit about your company. Its background (from where, when and how it all started), sales, contracts, key hires, products launch etc. to let them know about what you and your company have achieved so far.
NOTE: AVOID USING ANY JARGONS UNLESS YOUR INVESTORS ARE FROM THE SAME TECHNICAL FIELD.
· Target Market: Tell them about your target audience for the service or goods that you are selling. The best way is to divide your into TAM (Total Addressable Market), SAM (Segmented Addressable Market), SOM (your Share of Market). Identifying them requires some market research but this way you would have a better knowledge of the percentage that coincides with each area. It will be a great help even for you too other than the audience in order to know your roll-out plan better!
· Your forte: To convince them, it is not only important but a MUST to address how you are better from your competitors. Why should they invest their time and money in you and not others? You can do it by having a chart that compares your company with others in your competition showing where they lag and how your forte became advantageous for you.
· Customer acquisition: One of the most skipped things in this field which is very essential to deliver in your slides. This requires you to calculate your customer acquisition cost by putting some light on your financials as it should easily allow you to do that. Tell them about your plans to reach your customers, the cost it would intake and essentially that how you measure your success actually.
· REVENUE MODEL (in caps because your investors look forward to this one the most): Try to be very particular about the pricing of your product or service because this is where you going to get profit from. So how you going to make out a hundred from one depends solely on your pricing and the worth. Hence, do mention how the market is waiting for your product.
· ‘SHOW’ what you tell: Explain your claims that you’re projecting in the revenue slide (per product) to next 3 to 5 years. Remember that a claim looks more convincing when supported with numerical figures. Do backup your plans with numbers. The moment you project your assumption, be ready to see investors cross check it in front of you. So keep a backup of numbers with your revenue assumptions. And don’t forget to tell the ‘how’ of your chart.
· Investment history and future: Be exact and truthful to them about how much money has already been invested in your company, who invested it and how much more money you want your investors to support you with. Do tell them about your plans as to where you are going to put their money, what are your expected outcomes, and how your team would be capable of managing the investor’s money in growth because the investors are actually not investing in your idea but the way you EXECUTE it which will depend on your team. Don’t forget to tell them about your capabilities AND the incapability too. Also inform about the type of investment you’re seeking (a convertible note, equity round etc.).
· Exit strategy: If you’re seeking a large investment capital, then the investors would want to know about your exit strategy too. Tell them if you’re planning on getting acquired, going public or something else. Hence, be ready to show that you’re careful with the exit strategy too and have done some work on it plus how that would make sense in future too.
Ideas are cheap, execution is everything. So, I hope now you’re all set to nail it on your big day. And Remember! WE BELIEVE IN YOU, GOOD LUCK!
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JaZaa Business Services provides end to end solutions to start-ups including business plan formulation for investors, investor presentations, financial forecasting, marketing plan, budgeting, strategic plan, regulatory registrations, social media marketing plan, obtaining licenses, e-commerce launch and fundraising consultancy. We are business plan consultant and strategic advisor to some of the fastest growing start-ups around the world.