It was all working too well! How to Pitch a Business Idea!
We had the whole plan chalked out, all metrics discussed and we thought of making over a $10k by pitching a business idea in front of investors.
We actually thought we had been entrepreneurial geniuses. But the fundamental question remained there.
Everybody is working on a startup idea of his own without knowing it. As a matter of fact, none of us had any knowledge of it!
Result: Absolute Failure
How to Pitch a Business Idea / Master’s Approach:
But yes! I learnt one thing.
It was “How to pitch a business idea”
Remember the following key tips while you are preparing a pitch:
Always establish relations in all your facts and proposals. It won’t work if one minute you would be telling about your idea’s feasibility and in the other minute you end up ignorant of the question about it.
Always start with a problem. If the investors like the problem in your pitch, they definitely will look forward to finding its solution.
Be honest about the chances of failures and how they will occur. Because if an investor is interested then he would definitely devise a method to overcome the chance of failure.
Keep everything organized. Don’t try to present points haphazardly without any sequence.
Now there are unlimited answers to this question,” How to pitch an idea?” You can try any one of them.
But there are a few very fundamental ones. You try to go with them, you end up with higher chances of success while pitching your idea.
How to Pitch a Business Idea / The First Impression:
As soon as you walk in the conference room and get ready for pitching your idea, a stumble or signs of nervousness show that you are not confident enough about your idea.
Take into account these tips to make your first impression an impressive one:
- Never try to hold both your hands or never ever tap fingers of one hand on the other.
- Don’t move too much. Avoid fidgeting and remain as much composed as possible.
- If you are carrying any files, just place them on the desk in an organized fashion and while showing the documents don’t mix them up.
- Be well dressed. I am not talking of an Armani suit for pitching your idea but I am talking about an adequate dress according to the event.
- Don’t play with your pen or anything in your hand.
- “SIMPLICITY” It is the best answer to “How to pitch a business idea”.
- I have seen entrepreneurs walk into a room and end up in less than 10 minutes while just precisely explaining in the simplest manner their idea and emerging triumphant.
- Don’t try to be over smart. You aren’t the smartest in the room. Just be simple enough with your pitch. The more complexity you put in the more chances of rejection. This is because it may be your first pitch but it’s not so for the investors.
Context and Relativity:
Always be relative while pitching your idea.
Propose a problem that is genuine and also common. Devise a solution and show how it will work. Chalk out the financial metrics and just pitch your idea.
Remember, all relative.
For instance, the problem is people are too sad to look and prepare for funeral arrangements at the sudden death of a relative.
The solution, a company that works out everything for the customers for a reasonable price.
How it will work?
It will work by connections with the concerned. Graveyards, ambulances, the priests, the mortgage plans etc.
The investors won’t appreciate it if you would start telling him about the number of deaths or people with life insurance or those who don’t have anyone as heirs. He would just be annoyed at such pitching.
How to Pitch a Business Idea / Precision is The “GOLDEN KEY”:
Precision is the golden key while pitching an idea. Just because an investor has no time to listen to you for hours and in the end reject it.
He would prefer accepting it in just 10-20 minutes if its precise and well presented.
Just follow the 3P pitching an ideal approach:
- Present a problem.
- Propose a solution.
- Predict the outcomes.
Oer Ambitiousness Kills:
I once saw an entrepreneur pitching an idea that was cheap enough and manageable in 3 to 5 million dollars and guess what?
He pitched for 10 million dollars.
The moment he pitched the costs one investor left by saying,” We end up here boy”.
One of the other two bashed at him by asking rapid questions.
He tried to be confident and said.
“It can’t be done with any lesser”
The investors said,” O really? Thank you gentleman”.
It was the end.
Lesson? Never try to get more than required. Settle for less and you have much higher chances of success.
Try to get a big salary? or a huge amount?
You end up cutting a sorry figure.
Now the investors won’t like you to present graphs of over 100% return rate in 5 years or propose massive sales of all the products in a short time.
Once you do it, they sense you are being unrealistic.
However, they would prefer a lesser profit than seems justified to a businessman.
So be in your limits while pitching your idea because overdoing will get you nowhere.
Build a Prototype:
Now you can’t go and pitch an idea at a large scale of 20 million dollars when you haven’t earned 20 dollars from it.
The investor won’t like it. It doesn’t matter how good your plan is but they are definitely looking to invest in a setup that has got something.
So before you pitch, try to set up the idea yourselves at a smaller scale and earn from it. Such a prototype will convince them of moving it on to a larger scale.
You Are Ready To Go!
But remember! Keep into account the business casual dress code.
The question “How to pitch a business idea” is a question no more!