Angels Den, a UK based angel and equity crowdfunding platform, has shared some of their insight into creating a powerful pitch. The platform has listed their top five tactics for making that impact with investors to get your business funded. We all know that started a business is tough stuff. Long hours and sleepless nights. It’s always good to know there are many others out their sharing your startup path – not just to commiserate but to share their knowledge. Angels Den has been successfully matching entrepreneurs with investors for six years now – so they know their stuff.
To quote Angels Den:
Preparation: There’s nothing more frustrating to investors than an unprepared pitch. If you don’t know your numbers and how to sum up your business quickly and concisely to investors, you’re not going to get very far. Preparation is key. Practise in front of the mirror or friends and family. Create prompt cards to refer to. Know your facts and figures so you can manage your nerves.
Angel Investors Not Dragons: Entrepreneurs often seem to fear pitching to investors, worrying that they will be dragons, ready to snap and breathe fire at them at any moment. This is certainly not the case. Investors will have come, sometimes from very far afield, to hear your pitch. It is therefore in their best interest to make sure that if your idea has merit, even if you are struggling with your pitch, they draw the information they need from you.
Honesty is the best policy: An angel investor is a shrewd individual with enough disposable wealth to be able to offer your business a substantial financial boost, not to mention all the expertise and valuable contacts they can bring to the table. As successful businessmen and women, investors are adept at sniffing out the fibs in any presentation. If you are caught in the act you will instantly lose all respect and your chances of investment.
Know your facts and figures: If you have ever watched popular TV shows such as Dragons Den or Shark Tank, you’ll have seen many a nervous entrepreneur publically humiliated for not knowing their facts and figures. While a little extreme, this does push home a very valid point: to not know your current accounts and financial projections could be devastating to your presentation. Investors will always be looking at whether they believe your business will make a profit and whether you have the skills and knowledge to achieve their and your expectations. Your financial awareness is a major factor in their investment decision.
Have a Business Plan: To appreciate how your business has developed to date and what its plans are for the future are fundamental to the success of your venture and your presentation. The formation of a comprehensive business plan is a subject of much nervousness for many new to business, but it is simply the past present and future story of your business in summary, so that anyone looking at it can appreciate its potential. If you have structured your business plan correctly, it should hold the answers to any questions the Angels might throw at you.