The Investor Pitch – Part 2: Big Ideas in Simple Words
A business plan presentation is a make-or-break opportunity.
Investors evaluate the quality of the business idea, the product and market, and the management team based on the business plan pitch.
How You Deliver Your Pitch Is as Important as What You Say
Entrepreneurs receive a level of tolerance, even encouragement for experimentation, mistakes, and sometimes even outright failure. Their investment presentations, however, must be flawless.
These Are Rules—Not Tips
- Begin preparing at least eight months ahead—12 months is even better.
- Script the presentation, slide by slide.
- Rehearse. Rehearse. Rehearse.
- Practice out loud.
- Buzzwords are called that because they buzz—but eventually, they fizzle out. Produce new buzzwords of your own.
- Know the audience. Angels, venture capitalists, partners, and public sector sources of capital have different goals and priorities. Speak to the audience on their own terms.
- Use abbreviated text sparely. Include only simple pictures and graphics.
Deliver Answers Not Drama; Anticipate the “Asks”
- Be 100 percent respectful of the audience’s time and interest.
- Show traction driven by sales and functional competence.
- Trust investors to accept that the product will work; they want to know if the product will sell.
- Every business is based on assumptions; what are yours?
- Answers checklist.
- What problem does the company solve?
- Who is the user, and why would they purchase what you have to sell?
- How do you plan to acquire a customer?
- How much will that cost?
- How will the company protect intellectual property?
- Where do you plan for this business to be in 36 months?
- What is the exit strategy for investors?
Demonstrate That You Are Flinty Eyed about the Risks in Your Business Plan
- What makes you think the management team can execute this business plan?
- What are the assumptions?
- What are your margins?
- What will it take to reach breakeven?
- What are the make-or-break milestones?
- How is the business affected by economic variables?
- What is your intellectual property/how is it protected?
- What must you have to succeed?
- What will cause you to fail fast?
Demonstrate that You Are a “Coachable Entrepreneur”
- Learn when to say, “IDK, but I’ll get back to you.”
- Keep a pen and paper handy and use it.
- A team dossier is a nice leave-behind.
Do Not Ever Speak These Words in a Business Presentation Unless You Want the Meeting to End Early
- “No one else does what we do.”
- “We are chasing billion-dollar markets—and our margins exceed 10 percent.”
- “Our financial projections are conservative.”
- “Big corporations move too slowly to be a threat.”
- “Revenue is not our current focus.”
- “Several large customers are ready to sign—when we get funding.”
- “This is the best deal you will ever see.”
The Goal: To Leave This Impression with Your Audience
- Our founding team has functional and industry experience.
- We are individuals with high integrity.
- We are coachable, complimentary, and doers. We are the best choice for building this company.
- We know how to recognize and develop technology, solutions, and a business plan that will scale.
- Our go-to-market strategy is based on data and is achievable—by us.
- We constantly assess risk and market conditions. If we need to pivot, we will.
- Our cost of acquiring customers is realistic based on research and our traction with early customers.
- To us, business development is real, not buzz.
- The business is powered by directed passion.
In an investor presentation, you have about 60 seconds to capture the audience’s attention and about 14 more minutes to tell the whole story. An effective investor presentation will show your solution, coachability and character, and the founding team’s months of commitment and hard work.
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More Fast Reads on “The Pitch from Rev1’s Toolkit Library:
How to Develop the Perfect Startup Pitch
The Top 10 Things to Never Say in An Investor Pitch
Nailing Your Investor Pitch – Part 1
Nailing Your Investor Pitch – Part 2
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