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7/27/2019 10 pitching mistakes to avoid answers.pdf
http://slidepdf.com/reader/full/10-pitching-mistakes-to-avoid-answerspdf 1/2
10 Mistakes to Avoid When Seeking Investment
The art of the perfect pitch is to know what you are sellingand to sell it well.
Looking for investment can be stressful and timeconsuming; but the more prepared you are, the quicker and
more easily a deal can be done.Here are 10 mistakes every small business owner should
avoid when pitching to investors
1. Don't contact every investor you know
!o your research. "ot all investors are interested in everytype of business, and not all investors are willing to invest
the same amount of money.#ind out what types of companies they have invested in
previously and at what stage of business.$enerally this type of information can be found on the
investor%s website, but you can also make use of socialmedia platforms like Linked&n and 'witter to see who they
are talking about and who they are talking to.(nce you have completed this research, target the one or
two investors who you think best fit your business. 'hisresearch will save you time from pitching to investors who
are not interested, and will help to demonstrate that youhave done your due diligence.
2. Beware death by PowerPoint
)trike a balance between providing enough information to
interest investors, but not so much that the investors get bored or have little time for questions.
&f you have an hour to present, create enough slides to present for *0 minutes and then *0 minutes for questions
and answers. 'his should be appro+imately 1 to 1- slides.ake the slides visual as well as factual. &nclude results
from surveys, product tests and provide any client quotesor insights you have gained.
&f you have a product or prototype, make sure it%s fullycharged and ready to demonstrate to the investor. &f you
can hand out samples, do it, everyone likes free stuff.
3. Be ready for questions
'hink beforehand about the questions you would ask how
large is your target market, who are your competitors, why
is your product better than your competitors, how muchmoney have you made, what are you growth plans/
lso be prepared to supply alternative strategies, if aninvestor doesnt agree with your plans.
nswer questions in a calm and collected manner andmake answers as complete as possible. 2our relationship
with this person is likely to be long3term; therefore yourcommunication will be important.
4. Don't proise the oon
4e realistic and tell the investor how they are going to earn
their money back and more, and in what time frame.
dd credibility to these facts by identifying your rivalsand e+plaining your competitive strategy.
!. "ook at the bi# picture
!on%t think about getting 5ust enough cash to get youthrough the ne+t 1 to 6 months, think about your long
term plans.7lan achievable goals and aim for them. &t%s better to
raise more money than you need than too little. nd it willmake the investment feel more attractive.
$. Don%t #et carried away ta&kin# about the product
4oth you and the investor are there for one thing. oney.4y agreeing to meet with you the investor is assuming
that your business is viable. (f course you should e+plainthe product or service that you supply, but your meeting
should be focussed on the financial opportunity.'alk about how much money you are seeking, the
percentage of the business equity that will represent and
specifically what you intend to spend it on. n interestedinvestor will ask more about the product if they need to.
. Think about your appearance
8hen presenting your pitch, make sure you look the part.'his doesn%t have to mean a suit; but it does mean a clean
professional outfit and groomed hair.&t also means you have to be aware of your body
language. ake sure you maintain eye contact. !on%twring your hands or put them in your pockets.
'he investor will make allowances for nerves, but fidgettoo much and you look like you%re hiding something.
(. Don%t use abbreviations and don%t read a script
2our presentation should be clear and concise. !on%t use
acronyms the investor may not have heard of. !on%t use bad language.
&nstead present yourself as passionate and enthusiastic.
9ommunicate what your idea is, why you think it%s great,and why it will be a financial success. :emember though,
there%s a fine line between being enthusiastic and coming
across as a slick salesman. #ind the right balance.
). Provide an out
)how the investor how they%re going to make money.7rovide figures for pro5ected turnover and net profit over
the ne+t three years. &nvestors don%t want to be your
partner for life; they want to make their money and get out.8hether that%s selling to another company, going public orletting you stand on your own two feet.
1*. +ea& the dea&
)o the pitch went well, you felt you connected well with
the investor; now you need to close the deal.#ollow up with a phone call after the pitch. sk the
investor if they have any further questions or concerns youcan help with. sk outright if they are looking to invest. &f
they are, schedule a second meeting. 4e prepared to discuss the details quickly and efficiently.
'he longer you take to respond to questions or requests for
information, the less likely the deal will be completed.:emember investors are looking at other businesses, and
if one of those is quicker or smarter in supplying details,
your deal will be replaced by one from someone else.
7/27/2019 10 pitching mistakes to avoid answers.pdf
http://slidepdf.com/reader/full/10-pitching-mistakes-to-avoid-answerspdf 2/2
A. Read the article and choose the correctheadline for each section:
• 4e ready for questions
• 4eware death by 7ower7oint
• !ont contact every investor you know
• !on%t get carried away talking about the
product• !ont promise the moon
• !on%t use abbreviations and don%t read a
script
• Look at the big picture
• 7rovide an out
• )eal the deal
• 'hink about your appearance
B. Discuss the following words and phrases fromthe text. What do you think they mean?
C. ook at the highlighted words and phrases inthe text and match them to their definitions!elow:
strategy a planned series of actions for achieving
something.
turnover the total value of income received<revenue= or sales over a given period.
due diligence the care a reasonable person should take
before entering into an agreement or atransaction with another party.
goals something you hope to achieve in the future
salesman someone employed to sell goods or services.
net profit the amount of money a company receives
after paying for operating e+penses, ta+es
and all other and costs.
prototype the test form that a new design of a product
of it, which is used to test the design.
equity the part of a business that someone owns.
growth e+pansion of a business or pro5ect.
D. Are the statements !elow true or false?
1. &f you present your pitch well enough,
any e+perienced investor will be
interested. #,-ot a&& investors are interested in every type
of business and not a&& investors are wi&&in# to
invest the sae aount of oney./
. 2ou should allow 1031- minutes at the
end for questions. #
,0f you have an hour to present create enou#h
s&ides to present for 3* inutes and then 3*
inutes for questions and answers./
*. 2our pitch must always show ma+imum
ambition to e+cite investors. #
,Be rea&istic and te&& the investor how they are
#oin# to earn their oney back and ore and
in what tie frae. ,
6. &nvestors you meet will presume that
your business can work. '
,By a#reein# to eet with you the investor is
assuin# that your business is viab&e./
-. 2ou should never talk about selling your
business. #
>&nvestors don%t want to be your partner for life;
they want to make their money and get out.?
@. 2ou should always follow up the meeting
to ask for a decision. ',o&&ow up with a phone ca&& after the pitch.
sk the investor if they have any further
questions or concerns you can he&p with. sk
outri#ht if they are &ookin# to invest./
survey a set of questions that you ask a
large number of people in order to
find out about their opinions or
behaviour
viab&e capable of working successfully
proected e+pected or predicted, based on
evidence
tar#et arket the main customers you are
trying to sell to
riva&s people or businesses who are
competing with your businessacronys abbreviations that can be read as
short words, e.g "'(