Five Common Mistakes When Pitching to a Potential Investor


It’s not often that business owners get the chance to pitching their startups to potential investors. Unfortunately, rare as the chances were, many owners fail to grab the opportunity that was given to them by committing serious mistakes that drive the investors away.

Here are the five common flaws committed by owners when pitching to potential investor:

Answering the wrong questions

Most of the time, the bulk of the discussion between the entrepreneur and the potential investor are centered on the description of the business and its operations. Unfortunately, most investors are not primarily interested with the “what” and the “how” of the business. Rather, they are more interested in hearing the answer to questions such as, “What will they get once they invest in your business?”

Failing to know more about the investor

Business owners who are desperate for financial support tend to grab every opportunity that they see. This is a very wrong thing to do. Sometimes, investors only provide support to businesses working on a particular field. By learning more about your potential investors, you will avoid wasting your time explaining your business to those who have no interest in helping you out in the first place.

Using jargons

Business owners are passionate about their businesses. Unfortunately, this passion often manifests on the way they talk about their business to other people. And while using jargons shows your knowledge and expertise on your chosen field, doing so in front of a potential investor is a big no-no. How will they support you if they don’t understand a thing about your business?

You, not them

When talking to a potential investor, keep in mind that your conversation is about them giving you something that you can use for your business. Stop talking about yourself and your interests. Instead, talk about the things that your potential investors would get if they decide to help you out.

More and more explanations

Finally, keep in mind that potential investors do not like long conversations that lead to nowhere. Be direct to the point. Tell them what you need, and explain to them what they will get once they are on board.

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