Mistakes to Avoid When Pitching to Investors

Getting investors on board with your business idea is a great way to advance your dream to the next phase of becoming reality. But a critical mistake or two can be all the difference between coming out of your pitch meeting with excited investors at your heels and having to go back to the drawing board.  

Know your audience  

Knowing who you’re selling to is crucial for success, and that includes potential investors. One of your first moves after landing a meeting should be to do your homework.  

Look into the individuals and learn things like what they’ve invested in before, how much they tend to invest, and whether they’re part of a larger group of investors. Once you have a handle on these facts, you can tailor your pitch to better appeal to each individual.  

Sell yourself  

An investment meeting is a bit like a job interview. While selling investors on your product or service may be enough to secure funding, you also need to sell yourself.  

Investors aren’t just looking to see if you have a strong idea. They’ll also be looking at you to determine whether you have the drive to make it work and create revenue. Carrying yourself confidently, managing the meeting well and being prepared with tools like a business plan show that you’re a person of action and initiative.  

Always go into an investor meeting equipped with the right tools. Perform analyses of your target markets and competition, have an effective marketing strategy in place, and be ready to explain how you intend to use the investment. This level of preparedness shows investors that they can trust you to do the work when it is time to get down to business. 

Keep it short  

There’s no doubt that you’re passionate about your business or idea, so you may feel that the best way to get that across is to prepare a long, expansive presentation. However, a concise pitch is often more effective, and limiting your presentation to about 20 minutes can help keep investors engaged.  

What’s more, you should be able to boil your pitch down to its barest essence so that you can get the idea across in as little as a minute. This is what’s called an elevator pitch. If you can sum up your business to someone and get them interested enough to invest in it in the time it takes to ride from the first floor to the 15th, you’ll be in good shape.  

Consider starting your pitch meeting by asking how much time your investors have to listen. If they give you more or less time than you expected, you can adjust your pitch accordingly and adapt to the situation.  

It’s easy to go into a business pitch with butterflies in your stomach whether it’s your first or your 50th. If you have any peers who have successfully pitched to investors before, seek them out for advice and recommendations on what to do. With practice, focus, and vision, you can come out of your next pitch meeting with your head held high. 

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