Pitching Your Idea
One of the many skills I have learned over the years how to pitch and idea and win over a potential investor. Without a doubt, there are many aspects that decide the success or failure of your pitch. Among these aspects are whether the investor believes in you, and the fit between their industry expertise and your own. You cannot control all these aspects, but it is worth learning how to pitch your idea.
A pitch needs not be long; they can be as short as three minutes. Your pitch should focus on your core opportunity, and convey why your business idea is better than those of your competitors. It is difficult to know the other ideas your potential investors are looking at, so ensure you do the best possible job when covering the following items.
Your pitch should describe the opportunity you have recognised, why it is important, and how your opportunity will benefit consumers. Ask yourself the following:
- What opportunity have you identified?
- What problems do you plan to address?
- What is your business vision, and why is it important?
If you can show your investor that you have a very real opportunity, your next step is to present a convincing case that your opportunity is worthwhile. Do so addressing the following:
- Who is your ideal customer?
- What is the size of your potential market and is it growing?
- Who is your competition and how will you compete?
Finally, explain to your potential investor how your business plans to make income. This does not involve an explanation of how you will generate sales, but rather, clarify the costs of running your business and what profit you expect to generate. This involves answering:
- How much will you charge and why will customers pay this price?
- What are the costs of your business and what profit will it produce?
- Why will customers convert and how many will there be?
This pitch is unlikely to answer every question your potential investor may have, but if you do it correctly, the investor will want to learn more about your idea. Ensure that you are disciplined and only pitch your idea to those experienced in your industry. The more you practice pitching your idea, and making revisions where necessary, the more prepared you will be to explain it to a potential investor.