The time has come for you to make your pitch to your angel investor. Everything you have invested into your business start-up rides on this moment, and it is up to you to make the best impression possible. While it can be easy to get bogged down in the details of your presentation, you need to consider what is needed to pique the interest of your seed investor and not bore them into submission.
Think about what makes you stand out as a business startup and use your assets to your advantage. Sure, the numbers are important in your pitch, but they should be used judicially. Your private investor is investing in you as much as your business plan, and your performance will set the stage for that all-important funding.
Keep these tips in mind when you are developing the perfect pitch for your angel investor and be sure to keep it light, entertaining, and above all interesting. You only have a few minutes to garner their nod, and you want to make the most of this opportunity.
Because an angel investor is buying into you as much as the products and services you are looking to market, you need to sell yourself first. Allow them to see inside your world with antidotes that they can relate to. A good story can connect you to your angel investor and allow you to be a reliable source that they wouldn’t mind working with.
Keep It Simple
You may be immersed in the industry and the lingo that it uses, but your seed investor will feel alienated by your use of jargon if they don’t understand. Simplify the message and teach them along the way. Don’t use acronyms and be sure to avoid technical specs if they aren’t necessary.
The images that you choose to showcase to your business startup are crucial to helping your private investor see your vision. Most people are visual and need the help of visual aids to get the message across. Keep your images simple and make sure they properly represent your products and services. A typical power point presentation uses 12 slides, nothing more, nothing less.
Invite the Team
You have no doubt selected the best people in the business to work with you. Your angel investor needs to see the whole team to know how valuable they are to your business startup and how they, along with you, can propel the company forward. Invite them to the pitch and introduce them and their strengths.
Show Them How It Works
Let your angel investor see your products up close and personal. Be sure to show them how it works. Provide them customized samples that are geared toward their likes. It’s even better if your product can solve a problem they have right now. They’ll be able to see the merits immediately and invite you into the fold. If it’s a service that you offer, let your angel investor try it out. Make this part of your pitches hands-on and personal as possible, so you stand out.
Tell Them About The Money
Money talks and you need to show your current revenue stream and the impact the new funding will make on your business. If new start up, show the capital disbursements in how the Angel Investors funds will be used. Be ready to provide details on your sales revenue year-to-year as well as all your costs. You should have these numbers memorized, so you look prepared. Also, don’t forget to announce any large orders you have secured that will be coming in the next month or year. The more you can show your private investor that you have the goods to make this work, the more opportunity you have to secure that funding for your business start-up.
Use A Realistic Valuation
When it comes time to provide your valuation, it is key that you are as realistic as possible. A valuation that is too high can show your inexperience while one that is too low can predict your demise. This is the most common error that business startups make, turning off investors before they have even seen the product.
Let Your Passion Shine
You certainly should show your passionate side when it comes to expressing why you need funding from your angel investor. If they see the motivation and excitement you have, they will be more willing to fund you as they know you will give it your all to succeed.
Propose An Exit Strategy
During your pitch, you need to show your investor how they will recoup the funding that they are offering up. Remember they don’t want to be a lifetime partner. They want to earn as much as they can and get out. Propose a payback strategy as well as an estimated timeline. This will allow them to see the ROI of funding your startup business and the potential for their investment.
Don’t Forget The Follow-Up
Once you have privately pitched an investor. You still need to seal the deal and ask for the sale. Follow up with persistence to get your funding as your investor may move quickly to a new startup opportunity. You’ll also have to hammer out the details through negotiations that could be tedious to agree on. Get the process going immediately so your startup business can move forward too.
More detailed information and useful advice can be found at Funded.com. If you need to access our network of angel investors or a business plan for start-up funding visit Funded.com