Over past several months, we have been diving deeper into what it takes to build a successful start-up. The good, the bad and the ugly. Therefore, when we come across some good advice which resonates with our own past experience, we try and share. This blog, holds true for not only entrepreneurs, but the product managers who are struggling to get their business cases approved.
How To Pitch Your Business case?
Pitching a business to an investor or an executive team is often the most important moment in a professionals life (see how we linked entrepreneur to a product manager in our past blog). In a matter of minutes, or even seconds, an entrepreneur must convince investors that they, and their startup, are a bet worth taking—a tough task within the high-pressure, high-competition arena of venture capital. Th
e value of preparing a good pitch is more than just getting a foot in the door. Follow these three steps to see how to sell your idea and take your business from launch pad to orbit in no time.
Step 1: Show passion
Investors hear many pitches every day and are often pressed for time, so you should seek to pique their curiosity right from the start. The first part of your pitch should be all about your idea. Why do you love it? Why is it worth pursuing? And if the business is up and running, how much traction has it gotten so far? If you can answer these questions, you’ve already gotten past the hardest part, which is capturing an investor’s undivided attention. Now that you’ve cast your lure, it’s time to reel them in.
Step 2: Know your numbers
When making a pitch, numbers are crucial. The most meaningful stats to include are those that show traction: Addressable market, sales figures, profit margins, growth rate, and customer acquisition costs. If one or many of these general financial figures interests the investor, have no doubt, they will ask for more. If that happens, be prepared to discuss in-depth details such as cash flow, inventory management and more.
Step 3: You are your business
Once you have done the work and explained why your business deserves a chance, dedicate the last part speaking about yourself. Investors love entrepreneurs who are able to show a personal dedication to their startup that goes beyond making money, because it shows they will be in it for the long haul. They aren’t just betting on your idea, they’re also betting on your ability to execute it.
By the end of your pitch, your investors should have a complete grasp of what your business is about, what its financials are and who you are as an entrepreneur.
[About Guidunz: We are a full service product management consulting firm who focuses on developing a needs based sustainable growth plan for their clients. We are dynamic results-oriented executives skilled in growing revenue and obtaining productivities across Healthcare, Financial and Telecom Industries. Our strength is providing strategic leadership while developing and managing growth solutions in highly competitive and dynamic B2B and B2C markets. In our 17 years, we have built and managed over 50 cloud based technology products, generating recurring and top line revenue while bringing cost efficiency via process improvement.]