About to pitch your business? Here are 4 common mistakes to avoid when pitching investors.
Having a limited understanding of your Business scope
The worst moment to realize the flaws in your business model is during a pitch meeting. No matter how great your idea sounds in theory, the moment when an investor realizes you don’t know your product or the market, they will lose interest. Not doing your research comes across as unprofessional and lazy and raises red flags – especially if you don’t have prior experience. So, know your audience, know your product and your competitors because you will 100% be asked about these things and, it will help you deliver a perfect pitch.
Not bringing enough materials
Even if your pitch is short and sweet, the investor will still need documents to back up your claims, provide a roadmap of business development, and expand on aspects that couldn’t be addressed in the meeting. Even if the investor did not request anything specifically, you should still bring with you your Business plan, Executive summary, Revenue forecast, cash flow, and operational expenses and Resumes for members of the upper management, detailing their experience in the field.
Avoiding the Hard questions
Pitch meetings aren’t a one-way street. The investor won’t give you a yes or a no after you delivered a monologue. On the contrary, expect lots of questions and don’t panic if they insist. What makes your idea so special? Why should they pick you out of all people? Can you guarantee that customers want your product? It’s just a way for them to check that you know what you are talking about and clarify some of the things they should know before going into business with you. And, when the questions inevitably get tough and touch on vulnerable points (after all, no business is immune), don’t react negatively.
Making the pitch without a demo
You can’t make a demo for every business idea under the sun but, if your business model allows it, then creating a demo, even a rough one, can make your pitch more persuasive – especially if it’s technology-focused. First of all, a demo helps investors visualize concepts that may sound difficult in theory. And secondly, it shows that you already have a
