5 Keys to the Perfect Business Pitch
As it pertains to business funding, money is simply flowing like water right now. But that money is getting spread across a wide number of innovative companies, meaning that if you want to get your share, you’ll still need to bring your “A” game.
And that includes delivering a perfect business pitch.
2021 only needed nine months to become the most lucrative year for startup funding ever. Specifically, venture capital data provider Pitchbook says that in the U.S., startups raised $240 billion through Sept. 30 to eclipse the $166 billion raised across the entirety of 2020. Meanwhile, venture capitalists keep on raking in money to find new sources with growth; the PitchBook-NVCA Venture Monitor shows that VCs raised $96 billion through Sept. 30, 2021, versus $85.8 billion for all of 2020.
But that money isn’t going to every small business owner with their hand held out. Investors typically are choosing from a wide spectrum of opportunities, which means a plain, uninspiring and uninformative pitch just won’t stand out.
If you’re preparing to put your small business out there, read on as we lay out a few tips that will help you craft the perfect business pitch.
Advice for Crafting a Perfect Business Pitch
Do Be Mindful of Time
Just how much detail you provide will ultimately hinge on how much time you have to make your business pitch. If you have just five minutes in front of an investor, don’t drown them in numbers. 30 minutes? OK, break out the datasets.
One great approach to crafting a pitch is to make it multi-leveled. Start with a core elevator pitch (literally just 30 seconds) that includes the most pertinent basics. Use that as the foundation of a slightly longer pitch, say five minutes. Then pepper in some additional details, and perhaps a few visuals, to create a more substantial pitch for investors who really want to sit down and hear more about what your small business has to offer.
Don’t Go to Fantasyland
Especially if you’re new to soliciting investors, you might be tempted to slap a little varnish on your business, embellish a tad, exaggerate a skosh. Don’t. For one, this isn’t most investors’ first rodeo, so presenting something too good to be true could just end up being embarrassing for you. But imagine if you get through the front door with a lie – what then?
The perfect business pitch will include an honest outline of your business and prospects.
Do Your Research
Perhaps more specifically, provide an honest and accurate outline of your business and prospects. You want to make it clear that you have a firm grasp on all facets of your business – your product or service, your operational numbers, your competition and your potential market opportunity.
And remember: You might be giving the pitch, but investors will likely have questions for you, too. Be prepared.
Don’t Forget the Journey
Especially in longer pitches, you don’t just want to explain what it is your company does – you want to tell investors how it started and how far along your business has come. Tell them how you got started, explain any key milestones (sales, earnings, other important metrics), important personnel added along the way, and who else has invested in the business if it’s applicable.
Investors aren’t just banking on your product or service – they typically want leadership that already knows how to grow.
Do Show Off the Product If You Can
If you manufacture houses, you won’t be able to get one into an elevator when you make your pitch. But you can at least bring a model or an illustration. Whether it’s an app you can show on a smartphone or a plate of cupcakes from your bakery, one of the best ways to deliver a perfect business pitch is to show investors the quality of your goods.
Don’t Let a Drab Pitch Keep You From Funding
Many small businesses eventually need outside funding to scale up, which means at some point, it’s likely you’re going to need to impress an investor or two, and you can do that with a perfect business pitch.
That’s where professional insights really come in handy.
McManamon & Co. provides a wide array of consulting services for small and midsize businesses, including assistance with strategic planning activities, support with recruiting new corporate banking relationships, tax planning strategies … and we can even help you perfect your pitch.
Give potential investors something to think about! Reach out to us at 440.892.8900 or contact us online today.
Tags: financing, McManamon, small business, small business finances, small business financing | Posted in Financing, McManamon & Co., small business, Small business finances