- You need to be knowledgeable. With your business idea in mind, it’s time to sit down and learn. …
- Describe your product and services. …
- Discuss how you intend to attract customers. …
- Prepare a compelling visual presentation. …
- Manage your time well.
The business world is taken over by the startup movement. You have heard about unicorns, angels, sharks, VCs, accelerators, hockey sticks, and burn rates for a number of years. To thoroughly cover all of these topics, a book would be required. For now, all we need to know is that startups are young companies that frequently use investor money to experience rapid growth.
How to Pitch your Startup in 3 Minutes
What is a business pitch?
A presentation made by an individual or group to potential investors about a business idea is known as a business pitch. They give this presentation in order to obtain funding or other resources that will enable them to materialize their business concept or expand their operation. This presentation typically consists of a verbal pitch supported by a slide deck that provides more specific information about the company. An effective pitch is brief, concentrated on the objective, and provides enough details to capture the audience’s interest and, ideally, win their support.
How to pitch business ideas
The steps listed below can serve as a guide when presenting business ideas:
1. Develop your elevator pitch
You can draft an elevator pitch to make sure your message is understood during your pitch. This pitch should explain your business idea and why it is special in just 30 seconds. You can be sure that you have a clear understanding of your business idea and the objective you want to achieve by having a succinct elevator pitch. You can maintain your focus throughout the presentation by using this idea. It also helps ensure you know everything about your business. You can even use your elevator speech as a captivating introduction to the audience.
2. Know your audience
Your business pitch may be delivered to a variety of audiences, so you must adjust it accordingly. Spend some time learning about your audience’s history and interests. These perceptions can inform you of what your target market already understands or what may require further explanation. Additionally, by being aware of their particular interests, you can make sure that they are engaged by your presentation. You should also make sure you select the appropriate audience, which will depend on your requirements. You might concentrate on the financial resources they can offer or their sector knowledge, which you can use as direction as you develop your business.
3. Tailor your pitch
With a better understanding of your audience, you can start considering how to adapt your pitch to appeal to their needs, interests, and motivations. Think beyond the features of your business concept when pitching it. Focus your pitch on how your business idea can address the issues that your audience is facing after determining what they are. Because it shows how it can affect them, making a personal connection between your audience and your idea can increase interest. For instance, you might want to concentrate more on your e-commerce strategies or performance to engage or catch the attention of a potential investor with a background in e-commerce.
4. Create your pitch deck
You must create a pitch deck to help with your presentation. A series of slides representing your business idea are represented by this tool. Your pitch deck should be used in conjunction with your oral pitch to capture the audience’s interest and offer them information that will help them decide whether to support your idea. You might think about creating two decks: a concise one for your presentation and a more comprehensive one you can give the audience for additional reading. The more comprehensive version might contain more specific information or data that you did not have enough time to discuss during the presentation.
5. Tell a story
You can frame your pitch with a story to captivate your audience. You can show a problem that exists through your story and show how your business idea can solve it. Alternately, you could describe a difficulty you encountered that inspired you to create this business concept. Developing this narrative engages your audience more than reading a list of the advantages or features of your business idea would. A story can illustrate how your concept actually benefits people, which will resonant with the audience and create a strong connection to your company. They may be more willing to back you up if they can relate to the story.
6. Demonstrate your solution
You identify the issue you hope to address when narrating the history of your company. Next in your pitch, explain how your company or idea resolves that issue. Give three reasons why your product, service, or solution is the best choice for your target market. Think of this component as your value proposition.
7. Identify your target market
When creating your company, you should choose a target market that embodies the clients you hope to attract. Share this target market with your audience during your pitch to show them who you think will want to support your business. Create a profile of your target market before attempting to determine this market’s size. Total Addressable/Available Market, Serviceable Available Market, and Service Obtainable Market are a few terms you should be familiar with. By identifying these markets, it can demonstrate your strategic thinking.
8. Describe your business model
A business model depicts the organizational structure of your company and shows how it makes money and adds value. It might, for instance, contain details regarding the business’ operations and the manner in which it provides its offerings to clients. For investors to decide whether they want to invest in your business, they need to know this information. They must make sure that you have a viable business plan that will profit both you and them.
9. Show why you are better than competitors
Investors frequently want to know if you have rivals with similar ideas or offerings. By showcasing how your company stands out and has a competitive advantage, you can get ready for these inquiries or worries. Making a chart that contrasts the advantages and features of your business with those of your competitors is one way to show why you are better than them. This chart, when properly used, shows that you provide more than your rivals, which can help you stand out to your target market.
10. Showcase your successes and traction
When it’s possible, show your credibility by highlighting the accomplishments your business idea has already made. Select the metrics that best reflect the interests of your investors. These accomplishments could include strong sales figures or agreements you’ve made. If you set objectives for the company early on, show how your team has been able to achieve them so far. This information provides concrete evidence of your abilities and business value.
11. Provide financial projections
Projecting the revenue you anticipate generating over a specific time frame in the future is one way to further attract investors’ attention. Remember, you must have accurate data to support these claims. You might, for instance, base your projects on upcoming sales and marketing initiatives.
12. Explain the customer acquisition process
Earlier in the pitch, you identified your target market. You must now elaborate on your strategy for obtaining those clients. You can discuss your current or upcoming marketing plans based on your company. Describe your strategy for reaching those consumers, including the specific advertising channels you’ll use and any messaging examples you’ll use. For more information, you can also discuss your customer acquisition costs.
13. Introduce your team
When people invest in a company, they also invest in its employees. Introduce a few team members and the skills they offer to help establish a personal connection with potential investors. When they can interact with the people they might be working with, it can make them feel more confident about their choice. Additionally, it can give them a clearer understanding of the atmosphere or culture you have cultivated within the company. Having an experienced team can also help your business idea appear more credible.
14. Declare your funding needs
Your pitch’s conclusion should be clear about what you want from investors, such as money or a business partnership. Provide details on current investments and the company’s ownership stakes when requesting funding. Such details can help investors gain a better understanding of the company’s situation and financial management. It also demonstrates what type of role they would play. Some people might decide they need a larger stake in the company in order to perform their expected duties.
15. Answer the audiences questions
Your audience may have questions during the pitch, but you can reserve some time at the end for more inquiries. Try to create a list of questions your audience is likely to ask as you get ready to pitch. By doing this, you may feel more prepared for this part of the pitch. This preparation can also make an impression on your audience because it demonstrates your initiative and business sense. As you make more pitches, you’ll gain a better understanding of the audience’s questions and be able to incorporate them into your pitches. Consider your business idea from the audience’s perspective as you get ready to pitch. Make a list of some inquiries you anticipate them to have about your offering.
16. Prepare for objections
Along with queries, your audience may object or have concerns about your business idea. It’s crucial that you maintain composure and avoid displaying defensive behavior in this circumstance. Similar to questions, try to get ready by making a list of potential objections or difficulties you anticipate encountering. Then you can prepare answers for each one. Taking this action can make you feel more at ease and ready. You might not, however, always be able to foresee what your audience will say. Take a deep breath and admit your uncertainty when you are unsure of how to respond to something. Tell them you’ll investigate their issue and will send a reply-only follow-up email.
17. Ask for feedback
You want to keep looking for ways to make your pitch better as you go through the pitching process. If at all possible, follow up with your audience after the pitch to get their thoughts. It can highlight the aspects of your pitch that are effective and highlight areas for improvement. Although you might not always get it, be grateful to those who take the time to give you advice by expressing your gratitude. If these professionals regularly hear pitches, their advice can be a helpful tool.
18. Practice your pitch
Continue to practice and perfect your pitch. Practice all aspects of your presentations, including your verbal pitch and any questions you anticipate needing to answer, in advance of each one. Try to involve your team in practice sessions if you have one to make sure everyone is at ease on the field. Additionally, they can give you performance feedback and insight into your body language or speaking voice. To evaluate the tone and flow of your speech, you can also record yourself as you practice. You will feel more at ease performing your pitch in real life the more you practice it.
How do you pitch a business idea example?
- Be Concise and to the Point. …
- Create an Elevator Pitch. …
- Practice Your Timing. …
- Pay Attention to Details. …
- Understand Your Audience. …
- Address a Real Customer Experience. …
- Outline Your Business Model. …
- Talk About Your Team.
Where do I go to pitch a business idea?
- I am (planning/started/growing) company (fill in your company name)
- Which is a (website? …
- For (fill in your target audience here).
- The company seeks to (state the purpose of the business or what it does for the target market)
What are good ideas to pitch?
To pitch your idea to an angel investor, investment network, or group, you can also get in touch with them directly. Although it might appear to be the simplest method to find an angel investor, it’s also the least productive.