Common Mistakes to Avoid When Pitching to Investors
You must do the right thing when pitching to potential investors. You don’t want to turn them off because you didn’t hit the right spots during your presentation. The future of your business depends on their decision. Here are the common mistakes to avoid when pitching to investors.
Not knowing what to pitch about
You can’t enter the room when you don’t know what to say. Research every detail and know your business proposal well. You should also include research results or other relevant data as part of your presentation. You can’t convince the experts in the room with your great communication style if you have nothing to back your words up. Again, you’re dealing with business experts. They’ve been in the industry for so long and you can’t fool them with an appearance of excellence when the content doesn’t match it.
Failure to prepare for potential questions
Apart from the prepared part of the pitch, you must also prepare for possible questions. You can’t get by the prepared presentation alone. You should also look at what these people might ask you. Most questions are focused on the business proposal and its details. You will also be asked questions based on what you’ve already said to test your consistency. Make sure you’re confident in responding to these questions and go back to the data to support your answer. If you don’t know the answer yet, be honest about it. No one expects you to know everything. These questions are meant to determine how sincere you are and your capability to stand under pressure.
Not knowing the competition
You should also know the people you’re going to compete against. If a similar business already exists, you’re expected to say how yours will be different. If you can’t prove it, you won’t give these investors a reason to believe in you. It also shows your diligence in researching your competitors. Your business proposal shouldn’t only stand based on what you think will work, but how it will fare against existing businesses.
Lack of control during the meeting
You must be in control of the meeting. It doesn’t mean you will dominate the people in the room. The goal is to show that you’re a capable leader. When the investors see that you don’t have the capacity to command the room, they will change their minds about working with you.
Not understanding the people who will decide
It helps to dig deeper into the people who will make the decision. They will determine your fate. If you can’t impress these investors, they will walk away from you. Research about their previous investments. If you can interview their business partners or top employees, you will have a peak into their leadership style. You will also know who they are as entrepreneurs. You will impress them based on what you know.
By avoiding these mistakes, there’s an excellent chance you will get what you deserve.
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