Why You're Failing at Pitching Your DealsMay 23, 2022
When pitching your deal, keep in mind that just because an investor wants to meet with you doesn't imply the deal is done. Make sure you've done your research and know exactly what you're asking for before entering the pitch room. Have a firm grasp on your desired investment amount and be prepared to describe how you want to use their capital. It's also critical to understand your rivals and what makes your proposition unique.
Investors will also look for evidence that you have a viable expansion strategy in place. They'll want to know how you intend to expand your firm and produce income. Prepare to answer questions about your team and the market you are serving.
Here are some “pitch-faults” that you want to look out for in your next investor meeting and how to potentially avoid them.
You talk too much.
When meeting with an investor, it is important to remember that they are interested in hearing a concise pitch about your business. Don't try to talk too much instead, focus on being brief and to the point. Pick up on your investor's cues and direct the conversation in a way that will help you make a strong case for your business. By being prepared and knowing when to talk about key aspects of your business, you can increase your chances of acing the deal.
You are not just invested in your idea/pitch.
One of the pitfalls of most is that they tend to doubt their pitch ideas. When doubt starts to seep in, it actually just worsens and adds up to the mixture of fear that will lead you to be not so good at what you are presenting. However, you must also become very careful about OVER-CONFIDENCE in pitching. Don't make the mistake of thinking you have a unique and powerful idea without first doing your research. Knowing the competitive landscape is key to success. Too much passion and not enough knowledge about alternatives will make it difficult to pitch your idea to potential investors. You need to be able to show them that you are not invested in your idea but that you have considered all options and believe that this is the best one. Do your homework and you'll be more likely to succeed.
You don’t come up with a contingency plan.
No matter how great your business idea is, you won't get very far without the backing of investors. And while it may seem like these deep-pocketed individuals are doing you a favor by agreeing to fun your venture, the truth is that they're looking to make a profit just like you are. The key to winning over investors is to show how you're going to make money and to have a solid plan in place for how you're going to pay them back. This means being able to answer tough questions about where your customers are going to come from and how you're going to sustain the ideas of the business. Have backup plans from A-Z if possible when all things don’t go well. Research, knowing the market risks and profit forecasting are very essential.
Have you ever been in a situation where it feels like everything is riding on the success of your pitch? You're not alone. Pitching your deals to investors can feel like a make-or-break moment, but if you take the time to prepare and understand what investors are looking for, you'll be more likely to secure the funding you need.
At M1 Real Capital, we've helped countless entrepreneurs and real estate professionals perfect their pitches and we'd love to help you too. Contact us today to learn more about how we can help you turn your pitch into sales.
The information contained herein is for general guidance on matters of interest only. This information contained herein is not intended to provide you with any advice on financial planning, investment, insurance, legal, accounting, tax or similar matters and should not be relied upon for such purposes. M1 Real Capital Inc, Marcin Drozdz is not a financial, legal or tax adviser. You should assess whether you require such advisers and additional information and, where appropriate, seek independent professional advice. You understand this to be an expression of opinions and not professional advice. You are solely responsible for any actions you take with the content and hold M1 Real Capital Inc, Marcin Drozdz or any of his affiliates harmless in any event or claim.