Mistakes ThatBeginners Make When

Pitching to Investors

Created by Ethan Dysert

Randomly sending in a business plan

There are plenty of people trying to send intheir business plan to investors online.

Investors won’t take the time to read everysingle plan that they get. Sending in your

business plan doesn’t guarantee you an instantdeal. However, if someone that you know were

to refer your business plan to an investor intheir network then you might actually have a

chance.

Having a 50 page business plan

No one has time or wants to read a 50-page plan.Sell yourself in the quickest and most reasonableway possible. If you have to write your plan in the

form of a paper make it no longer than two orthree pages. What is even better is if you present

your information in a PowerPoint.

Not having data to back you up

If you haven’t done your research then no one willtake you seriously. Investors need to know that youknow exactly what you’re doing and that you’re on

top of everything. There are several metrics thatyou need to include in your pitch such as lifetime

value, churn, and customer acquisition cost.

Failing to identify your target audience

Without knowing who will buy your service orproduct then how will you know if you’ll actuallymake money? Knowing your target audience is

fundamental to running a business. Many peopleplan everything else for their investor presentation

but forget this, one of the most crucial parts of abusiness plan.

Only having the CEO speak in the pitch

The only way that a business will succeed is ifeveryone on the team wants it to. Therefore,

when only the CEO speaks at an investor pitchthen the investors won’t believe that the rest ofthe team is truly dedicated. Let your team speak

for themselves and prove to the investors thatthey are as in it as you are.

Not following up

This is one of the most important things inbusiness relationship. Following up shows the

investors that you really care and want toknow what they think. It keeps the

communication line open for the future andgives them an avenue to respond to you.