The art to the perfect pitch is to know what you’re selling and to sell it well. Looking for business investment can be stressful and time consuming, but the more prepared you are, the quicker and more easily a deal can be done.
To avoid regrets, it is essential to do a bit of research before choosing from the wide range of investment opportunities at your disposal. Here are a few mistakes every small business owner should avoid when pitching to investors.
Don’t Reach Out to Every Investor You Know
While searching around for an investor, be sure to do your research. Not all investors are interested in every type of business, and not all investors are ready to invest the same amount of money. Have a word with your friends, your connections, industry associate, and lawyer.
Take this as the opportune time to ask them for recommendations of investors and the figure out everything you can about them. Determine what types of companies they have invested in previously and at what stage of business. Once you do your homework, target the one or two investors who you think best fit your small business.
Being Thrown Off by Questions
Before attending the meeting, it is ideal that you put yourself in the investors place. Think about the most likely questions you would want to ask; how large is your target market, who are your competitors, why is your product better than your competitors? You should also be ready to supply alternate strategies.
When an investor asks questions, ensure you answer them in a calm and collected manner. If the questions are asked during the presentation, you need to answer it as completely as possible.
While it is tempting to brush through the answer to stay on track with your pitch, it is important to remember that your relationship with this person is likely to be long-term. No wonder communication will be important.
Reading the door for mistakes open could certainly lead to costly business investment mistakes. That’s the last thing you want for your small business.