Getting Funding For Your Business: The Pitch

Getting Funding For Your Business: The Pitch
  • Opening Intro -

    So you have figured out who your niche market is, what their problem is and how your product or service is the perfect solution.

    But, just how do you get funding for your business?

    Some of the common sources of startup capital may include banks, family, friends or even investors.

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The first three sources – banks, family, friends – may not be as receptive as compared to investors. Simple reason being – that’s what they do. They invest in businesses that have potential for growth and profitability. This does not mean it will be easy to get funding from investors, you will still need to work hard to impress them.

In this post, I will tell you how to present your business idea to an investor and what aspects investors will be looking for in your presentation before deciding to invest in you.

Presenting/ Pitching your business to an investor.

Before you present your pitch, you need to prepare thoroughly and have the pitch in your fingertips.

  1. You need to put yourself in the investors’ place; would you fund the business on the basis of the presentation. Optimism just isn’t enough; you need to have a clear, substantiated business plan.
  2. Make your presentation as clear and concise aa possible. Do not cover all points but be ready to answer questions. A pitch can be inform of a presentation or an elevator pitch, depending on investors’ time. It is thus necessary to be ready to communicate a short summary of your business touching only the key points within a short period of time. A perfect pitch will communicate: who you are, what you offer, what problem you seek to solve, what contributions you will make and a call to action for investors.
  3. You will need to provide clearreasons why you need the funding, stating what the funds will be used for. Make sure the reason clearly matches the amount and duration for which you will use the funds. Do not undervalue or overvalue, rather, present realistic figures. Undervaluing makes you look incompetent and overvaluing makes you look greedy.
  4. Be enthusiastic – inform the investor of your future projection for the business. Make him/ her feel as part of the future. Dont be afraid to present pessimistic financial projections. The investor needs to know themaximum support s/he will have to give incase.

What the Investor will look for in the presentation

In short, the investor will be looking for the RADAR: Reason why you want the investment and what for, Amount you need as investment, Duration (an investment is a loan thus you should provide time), Assets also known as security (If any), and Repayment terms (remember all investors want a return on their investment).

Investors also need to feel that you understand budgeting. And that the investment funds delivered will be managed accordingly.

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Having done all this, you can be sure to secure funds from investors. The key is confidence, proper knowledge of the business and a great presentation. So lets not be selfish, share this information with your friends and especially your team. This way, you will be on the same page and you never know, maybe an investor is waiting for you to reach out.

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Categories: Business Financing

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