Charlie Brock wrote an article for the Tennessean recently about pitching your startup business to investors. There is good information in his article for anyone who has the opportunity to pitch their business, whether to investors or others. My summary of Charlie’s article follows.

Be Prepared  If your lack of preparation creates havoc or delays the process, people move on whether they politely stay in their seats or not.  They check out mentally if you aren’t ready when it’s your turn.

Know Your Competition  If you say you don’t have competition, you haven’t done your research.  Every business has competition even if they address the same market or problem from a different perspective.

Avoid Top Down Forecasting  When asked about your business’ projected growth, don’t say your business is in a $2 billion market and you are working to get 1% to generate $20 million in revenue.  Show how many customers you expect to sell to, how much they will pay per unit and how that will grow over time.  Tell how you will reach those customers through direct sales, line marketing, distribution partners, etc.  and how much these customer acquisition methods will cost.  You will be wrong.  All forecasts are off base.  You’ll be much more credible if you have gone through the process from the bottom up.

Attitude  People take a huge risk investing in early-stage companies.  Many startups fail.  If you are still a startup, explain why your company will defy the odds and be successful.  Manage the fine line between confidence and arrogance.  Confidence is attractive in a business owner.  Arrogance is a red flag that you may not be coachable.  This is a characteristic that repels potential employees, customers, partners and others.

Funding  If you are asking for an investment, be clear on how you will use the money – which must be legitimate and for the future.  Requested funds should never be used to clean up prior debt.  Use the funds for product enhancement, market validation and business development – things that help your business grow.

What to Say  No one cares much about your lengthy business plan – except bankers.  A one-to-two page executive summary and a short presentation deck is what people are looking for these days.  Don’t just talk about the idea and the product.  Talk about the strength of your background and that of your team.  Tell your story.  Talk about how you are going to execute your plan.

Ask for More  Not everyone is going to invest in your company or become your customer.  Ask the people you are speaking to for connections they might be able to help you with, strategy ideas, and relationship development.  Leverage their expertise.  Ask for their help.

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Are you ready to talk about your business or business concept when the opportunity presents itself?   If not, we can help. Call for an appointment and we’ll work on your pitch so that you’re ready, your message is clear, and you ask for what it is that can help you the most. 931-456-4910

This fall we will have a formal Pitch Night…be sure you’re ready!