Four Key Considerations for Your Investor Pitch
— Michael Toney, Founder – Conquest Training Systems, Inc
As I have coached entrepreneurs in preparing for presenting their concepts and companies to investors in order to try to raise capital, I’ve seen time and again that they all suffer from the same disease. They want to share too much information in too short a period of time. Many people want to tell the prospective investors everything cool about the technology and what it does. Most don’t realize that is not what the investor needs.
Instead, here are a few good things to focus on to engage the investor.
Know how investors listen:
Investors hear millions of pitches a year. They have a built-in B.S. detector, designed not so much to detect lies but rather to weed out dead ideas that might waste their time. They will try to get rid of you first, so you need to get past the B.S. detector or it’s over.
Answer this first: What problem do you solve better than ANYONE else?
This is a tough question to answer, but if you take the time to figure this out yourself, the investor can start understanding much faster. Notice it is not about the technology and what you do; it is about why you do what you do.
Don’t be afraid to be emotional about it!
Facts are good, such as: “There are 533 children diagnosed with this defect per month.” Emotions are better, as in: “We eliminate the suffering, disruption and chaos of the 533 children, parents and families affected by this disease every month!”
Design the outcome of every conversation to have a next step.
Whether you are pitching a room full of investors or having a one-on-one conversation, what do you want the next step to be? Have a reason to get the investor to meet with you to get the answer he wants, in your next meeting.
Remember, if you give all the information they need to disqualify you, they will – and it will be over for you. STOP TALKING SO MUCH! It is more likely to say something negative that the investor will zero in on, than some chance you say everything perfectly and he falls in love with you.
You want to have the investor wanting you, so don’t be hungry or needy. Leave meat on the bone for every conversation. Design your pitch well and get a coach. It only takes one investment to launch a company, but it only takes one moment to lose the investor.
Michael Toney, founder of Conquest Training Systems, Inc., is considered one of the most experienced and effective sales trainers in the nation. With a process using the technology and strategy from proven training institutions like The Sandler Sales Institute, Toney gives sales professionals and business owners an edge when it came to selling and service to customers. Toney has an incredible portfolio of sales experience and successful clients he has helped exceed sales goals and projections through his successful, nurturing communication formula.
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