One of the hardest presentations to make is the Entrepreneurial projects. You have a great idea for a business and you want someone to give you money to make it happen. The problem lies in the fact that venture capitalists and angel investors, and even rich uncles have a great readiness against you. Why? Because 99% of the pitches they hear sound like a sure-fire recipes to lose money!
If you pay investors to give you money for a new project, you must subscribe to the following rules:
1. Explain exactly what your business is within the first thirty seconds. Many entrepreneurs waste valuable time giving amounts of data, are left background and other information, all the while investors scratching their heads thinking, “What does this really work?”
2. Tell your audience that your customers will be. Paint a vivid picture of those specific people.
3. Explain why customers going to give you a hard-earned money.
4. Explain who your competitors. (And if you say you have no competitors, and this is a sure sign you are naive and well worth any amount of money to invest!)
5. Explain why you are the one to make this happen.
6. Deliver your presentation with confidence and enthusiasm. Investors want a founder / chairman of the Board of Directors to be the head of a salesperson, but want to see that you can convince the world of your dreams, and not only them.
7. Explain what the star, you can hitch a ride. And Best Buy or Radio Shack agreed to distribute the new product? Investors feel more comfortable knowing that you have established player willing to distribute your wares.
8. Ask for a specific amount of money. If all you have to do is ask for money, you can not complain if the investor gives you $ 3.25 for a cup of Starbucks coffee.
9. Tell prospects exactly what you’re going to spend money on (hint: a trip to Maui for you and your friends do not impress)
10. Dress well, act confident, and put on the air that you do not really need the money, but would be willing to accept it if they bring enough to the table to be a strategic partner for you. Sad but true about human nature, but people are more likely to give you money if they feel that you do not really need it much.
Finally, make every pitch as a focus group for your next. When one group of investors asks you a series of questions after the pitch, and write down all those questions and make sure most of them are answered in your next pitch so as not to be the next team to ask them. Keep pitching and keep improving the stadium and in the end you might get funded.