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Whether you're seeking
funds from Angels Investors, Venture Capital firms, Strategic
Investors, Banks, or the SBA, you are going to need to create
a pitch which gives potential investors an understanding of your
business.
Target your
meeting length for 60 to 90 minutes, with 30 to 40 minutes used
for your presentation and the remainder of the time used for questions.
Make sure your presentation is well organized and is clear, concise,
and to the point. Remember, this is the first (and maybe the only)
chance for the audience to evaluate you and your business. The
more porfessional you are, the better your ideas will be received.
First, discuss
the market you intend to serve and the product(s) you intend to
introduce into that marketplace. Describe what is driving the
growth in your market and the value proposition of your product
(i.e. why customers would choose your product over the competition).
Discuss how far along you are in the development of your product
and list the customer you have signed up so far or those customers
that are sampling your product (Back in 1998 and 1999, you could
actually get financing by pitching a technology with or without
having customer interest. Now, funding is alot tighter and investors
will be looking for customer interest as a way of validating the
importance of your product into the marketplace.
Second, give the audience an overview of your management
team, and the experience they bring to your company. Needless
to say, the more the experience, the better your likelyhood for
success in executing to your business plan.
Third, present your finance plan, giving your audience
and idea of how much money you will need to launch your product(s),
and how long it will take for your business to be self-sustaining.
Many observers say investors pay little attention to a company's
financial numbers during a "pitch"; they prefer to run
their own numbers. Still, you need to have this section of your
presentation well organized and easy to understand. Prepare for
alot of questions on the assumptions you used to build your plan.
After the
Q&A portion of your presentation, ask your audience for feedback
on your presentation. Constantly look for ways to improve your
pitch.
After your
meeting, be prepared to deveote alot of energy to following-up.
Investors have very busy schedules and are sometimes slow to get
back to you. Show determination, keep calling until they give
you an answer: Yes, let's have a second meeting, or No, we'll
pass.
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