Startups are a trendy topic to discuss in this modern Era but extremely trendy when it comes to startups of tech development companies. Does this article also concern a similar topic that is how to pitch to investors? We all are aware of the fact that a key factor to make your startup is by raising capital. In a nutshell, this means maintaining and developing good relationships with your investors. Building a professional relationship with your investors is the main soul of building a successful business. Then it’s time for you to discuss the injections of the capital. And showcase what all you have to offer. In this article, we’ll further learn about how to create a rock-solid relationship and how to develop an A1 business plan and deliver a pitch to investors.
First, we’ll learn a strong business plan and then will move to an engaging pitch that you can show your investors.
Read more :- What are the opportunities for investors in India?
How to Pitch to Investors: Preparation & Execution
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Executive Summary
The key elements of your business should always be summarized in a page or two. The very first thing on the summary should be the list of the problems you’re trying to solve. The next in line should be the reason why your solution is better for solving the following problem. The third point should contain the list of your targeted audience. The name of your competitors and your sustainable competitive advantage comes next. An overview of the team and business model should be written next. And to wind up the list, mention your goals and financial highlights.
2. Company Summary
Just like the Executive Summary, you have to make a list under the company summary as well. This list must contain the concepts of your company that you want your investors to acknowledge.
3. Products and/or services
No other person, I repeat no other person can describe your product better than you. Only you can narrate how you’re developing and selling the product. And describe in detail the problems along with their solutions.
4. Market Analysis
An important section should contain information about your industry, such as target market and competition and how you’re going to make space for your product in the market. For example- competitive analysis, target market, target results, industry description and outlook, and so on.
5. Marketing Strategy
In a nutshell, a marketing strategy means where and how to fit your business right into the market. And further, how will you promote, price, sell your product and services. This whole process depends on the market analysis. Moreover, you need to mention how you want your brand identity to develop in the market.
6. Operations
Your daily operations, for your startup, should include elements such as production, quality control, inventory systems and so on. Plus all the legal elements of your startup.
7. Management and Organization
This section must include the name of your startup. Such as names, job titles, position descriptions, prior experience and qualifications.
8. Startup Expenses and Capitalization
This particular section mainly focuses on the capital you need for starting your business. The content list should consist of startup expenses, product development costs, overheads and so on.
9. Financial plan
One of the most important points is that different accounting have different accounting structures, and companies should respect them. for example- on profit loss statement, balance sheet, cash flow statement etc.
10. Appendices
The final step. Once you’re done with everything, you should move on to creating your pitch deck.
How to create an engaging pitch deck
Your first step is to find investors who have money plus interest in your startup. Design a pitch that is more about raising money, that can entice potential investors. And make sure that your pitch answers two of the main questions: why you? and why now? Another thing that you have to make sure of is that your profile fits better than others. If you want to continue with them, you have to make sure of some points that your pitch needs to have- The last and important point should be delivered with clarity and passion.
Some slides that you can/should mention in your deck-
- Opening title slide
- A summary containing your value proposition
- The problem
- Solution
- Product
- Your business model
- Your go-to-market strategy
- Financials
- Competition/advantage
- Your team
- Funding requests
- Closing slide
Your pitch should be grabbing the interest of your investors just like when the audience hears some interesting story. Even though facts are very important but the main thing is that stories are much more interesting than facts. Last but not the least, Preparation. Wrapping up round involves Preparation which is the key to pitching your investors.
