Mistakes That Entrepreneurs Must Avoid When Pitching to Investors

Very few entrepreneurs are given a chance to pitch their businesses to investors. Unfortunately, not everyone who gets a chance to talk with potential source of financial support receives positive response. The reason: they often commit mistakes when pitching their business startups.

Here are some of the most common mistakes that business owners do when pitching their companies to potential investors.

Long elevator pitches

Elevator pitches are called as such because they are expected to be short – around a minute, which is the average length of a person’s ride in an elevator. And despite being called the “elevator pitch,” there are other instances when business owners are required to be brief when introducing their companies to possible investors. These include chance meetings in cocktail parties, meetings, or even introductions between common friends.

Such cases, which often happen in informal settings, are not boardroom meetings. And while investors may be interested in the pitch, talking about it for more than a minute or two is not appropriate. Doing so may put a bad impression on the part of the investor, therefore losing a possible deal.

Business owners must keep in mind that they should save the talk during an actual pitch.

Long presentations

During the actual presentation of the business, PowerPoint presentations are often considered as God-send tools. It provides the people around the room some visual information that could pique their interest on the topic being presented.

However, business owners must keep in mind that PowerPoint presentations are used as support and are not meant to be the star of the show. Therefore, entrepreneurs must be able to limit the length of the PowerPoint presentation so as not to bore potential investors.

These people want business owners to talk about their business startups and not just read from a prepared presentation.

Made-up proposals

Business owners want to impress potential investors. However, putting wrong information on the investment proposal, for instance blowing up the exit figures to impossible proportions, often raise eyebrows of investors.

Entrepreneurs must remember that investors value business owners who present them with the reality more than those who make-up information just to impress them.

Early discussion on valuation

Investors often turn their backs on business owners who start they pitches with valuation. Before doing so, business owners are expected to introduce first the business and its operations. Investors are there to provide money, but they would rather hear about the business first before getting information on the valuation which is, technically, their expertise. There is no need to walk them through on this process.

These are just some of the things that business owners must avoid when pitching their businesses to their potential investors. Following this would make them one step closer to getting some financial support.

 

More detailed information and useful advice can be found at Funded.com Created by Mark Favre, it offers expertise and assistance with developing and funding your concept, including a private forum for queries and discussions. If you need access to investors and funding providers, please do check our website.Funded.com

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10 Replies to “Mistakes That Entrepreneurs Must Avoid When Pitching to Investors”

  1. There are several kinds of investors. It’s wonderful when those getting involved can visualize the long term, as well as growth and the contribution to be awarded. Good investment is in change that will impact humanity with positive involvement. Thank you for your email.

  2. Great tips, my favorite is the #1, I think the presentations should go direct to the point and that the entrepreneurs should show their knowledge and shouldn’t be reading their PowerPoint all the time!

  3. Thanks so much for the interesting and informative post. I would like to mention something that you should always do after meeting with investor…. follow up in writing, regardless of the end result of the meeting.

  4. This is valuable information for all business owners who are looking to get investors interested in working with them. Thank you, this gives us all a way to learn the ropes before making that proposal.

  5. Mark, this is all new to me since I have never tried to seek out investors. Sounds like some great tips if I ever decide to go in this direction. Thanks!

  6. Fantastic article. I have to agree, I tend to glaze over when people start trying to sell me their opportunity. Just tell me what it is and how it will change something in my life.

    Powerpoint presentations is a great reminder. I am doing an event next month and I am to supply a power point presentation. I think I will keep it simple. 🙂

    Always great value to be found on your blog! Thank you.

  7. Very helpful tips! The business owners must honestly feature their businesses to the investors so that there is transparency as well which is also quite important. How long must a presentation last?

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