Have you considered pitching your idea to investors to generate more revenue in your business? Some may feel a little uncomfortable with the thought of presenting their business to big-time investors. Don’t let the fear of failure in your business stop you from giving it your all! Keep in mind that most large companies didn’t get to where they are on their own. They had financial assistance at some point during their journey. Today we’re giving you 6 keys to successfully pitch your business to investors.
You will Learn:
- Be a Painkiller, Not A Vitamin to Investors
- Find Product-Market Fit
- What Investors Actually Care About
- If Your Business Needs to Raise Money
- How to Impress Investors
- How to be Pitch Ready
Pitching Your Idea to Investors
If you are considering pitching your idea to investors, then you’ve come to the right place. We’re giving you all the tea on how to become pitch ready. After sitting down for an interview with Kimberly Lewis the co-founder of CurlMix, a clean beauty brand for curly hair. We discovered what you need to know if you’re deciding to grow your business with the help of investors.
Here is what you should know about Kimberly Lewis.
Kimberly’s innovative take on clean beauty hair products has won her praise from top industry publications such as Refinery 29, Essence Magazine, Ebony Magazine, and ABC TV. With a Bachelor’s degree in Logistics and Marketing from the University of Illinois and a relentless drive, Kim has taken CurlMix to over a million in sales in just a few years.
Today she’s sharing her top 6 tips for pitching your idea to investors.
Be a Painkiller, Not A Vitamin to Investors
Most people know the difference between a painkiller medicine and a vitamin, right? However, have you thought about the role each would play when you are pitching to business investors? Painkillers solve a real pain or problem, whereas a vitamin is a nice to have and don’t necessarily resolve the pain. Investors are attracted to individuals who have found a profitable solution to a problem.
Find Product-Market Fit
Where does your product fit in relation to your competitors? Investors like to know that they are putting money into something that will ultimately have a lasting value. They want assurance that your product can withstand the ebbs and flows of the market.
This is why it is important to determine your avatar. Know who is buying your products and be aware of what your competitors are doing. Research is key when determining where your product stands in the market. Ask yourself if there is a high demand for your product and does it satisfy the needs of the market.
3 Things Investors Actually Care About
A lot of work has to be done before communicating with investors. First impressions are important this is why you need to know what investors care about. Here are three things investors actually care about that you should know:
1. The Investor wants to know if the market you’re in is profitable.
2. Is your company trending upward in growth
3. Is your product different and set apart from others in the market.
Keep these things in mind when doing your market research. Map out your plan and connect with others who have experienced the process.
Does Your Business Need to Raise Money?
Before connecting with investors be sure to have your stats in place. Investors want to know why they should invest in you. Be proactive in your preparation. Create a pitch deck that Includes charts and graphs of money spent in your business and have a reason behind your request.
Be clear and transparent. Let them know how much you are generating and what your projections are.
How to Impress Investors
Create a list of potential investors. For more insight on investors in the market visit https://www.cbinsights.com. This site breaks down what companies the investors are choosing and how much they are putting into the pot.
Get your brand in front of the investors. When attending local pitch competitions and events make sure to research the investors in advance. Do as much as possible to gain exposure. Network and connect with business owners in your market.
You can impress investors by being prepared, knowing your numbers, and having a clear roadmap to how you will use their investment. And whatever you do… don’t tell investors that you are using their money for Facebook Ad’s.
How to be Pitch Ready
Practice makes perfect. Have a trial pitch with someone you trust. Keep in mind that pitching to a crowd for two minutes is very different than pitching to an investor about your business. You should be prepared for both.
Most investors will have more in-depth questions about your business. Their goal is to make sure that you’re ready for such a large investment.
Additional research from Forbes.com:
7 Tips For Pitching Your Entrepreneurial Idea, Whether To Angels Or Sharks
- Let them know who you are.
- Explain your project in less than 5 minutes
- Have a plan starting with day one
- Know your investor. Research who they are and what they do.
- Don’t waste their time
- Negotiate the offer.
- Learn the proper terms to use when pitching
To learn more about Kimberly Lewis and her brand CurlMix visit Curlmix.com
Also make sure you join our FREE Facebook group called Traffic, Sales & Profit with Lamar Tyler if you would like to see the entire interview with Kimberly Lewis.