In the early days of your startup, investors can make or break your business. Failing to bring on new investors can mean pushing back the launch of your service or product, or delaying a major hire or purchase.
That's why it's so important to connect with investors from the start and to pitch your business in the right way. Here, nine Young Entrepreneur Council members share tips for practicing your pitch to potential investors and what to keep in mind before the big day.
When practicing your investor pitch, what's one thing you need to keep in mind? Why?
1. Avoid using industry-specific terms
You're an expert in your space and the investors may not be. Avoid using too many industry-specific terms or acronyms that may inadvertently confuse your audience and create unnecessary questions that throw the pitch off pace. This is one key way to prevent objections ahead of time. —Drew Gurley, Redbird Advisors
2. Make an emotional connection
Make them believe. Challenge them to believe in you. Investors aren't going to run your business. You need to make an emotional connection with the people in the room and build empathy to bring them along on your journey. They want to feel your resolve and passion. Get your investors out of their heads and in touch with their hearts. —Ryan Stoner, Dendro
3. Speak to their interests
When practicing your investor pitch, keep in mind that investors might be looking for a straight-up moneymaker, or they might be interested in the strategic advantage of investing. Maybe the strategic advantage is that your business aligns with another business they’ve invested in and could potentially cross-promote to increase revenue for both businesses. If you've done your research about the investors, then you'll be able to communicate some of these potential upsides. —Nathalie Lussier, AccessAlly
4. Remember to breathe
When people get nervous or feel pressure, the first thing they do is hold their breath. It's hard to get information out of your mouth, let alone project confidence, when you can't get air out of your lungs. So, take a big breath at the start of your investor pitch, and give yourself cues throughout your presentation to keep breathing. It'll relax you and project self-assurance, as well as in your voice. —Nic DeAngelo, We Buy Loans Fast
5. Focus on the investors, not you
Just as we see a table as something to place our laptops or food on, and not as a processed tree log or a group of atoms, the same is also the case with the investors you're going to meet to ask for capital. Your business means nothing until you show them why they should care. It's not about your business; it's about their business. —Samuel Thimothy, OneIMS
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6. Craft a compelling story
Make your story compelling. Mention your achievements and quote the numbers. Highlight the sales you've made and the ROI you've generated. Explain what you expect to generate in the future. These numbers play a big role in making your story stand out because they showcase your potential. —Thomas Griffin, OptinMonster
7. Prepare for critical questions
When practicing your investor pitch, the best tip is to create an arsenal of responses to objections. Being ready does two things for you: it forces you to evaluate possible objections and modify your pitch ahead of time, and it shows investors you are thorough. —Jared Weitz, United Capital Source Inc.
8. Provide solutions
Investors will want to know what solutions your product or service provides to potential customers. If you fail to take this step, you’re unlikely to achieve your ultimate goal. —Andrew Schrage, Money Crashers Personal Finance
9. Be your true self
Investors are looking for someone they can believe in and can make a bet on in hopes of a high rate of return. Usually, people do business with those they like and trust—so be your true self. Share your compassion, your “why,” and what your driving force is for making your dream happen. I also find that being open and vulnerable by putting it all on the line means you'll receive kindness, understanding, and hopefully, the investment you're looking for! —Racquelle Pakutz, Zen Freight Solutions Inc.
RELATED: 15 Key Questions Venture Capitalists Will Ask Before Investing in Your Startup
