One of the biggest challenges of small business owners is capitalization. Although the general business structure and organizational management are more straightforward, business expansion does not always come immediately. Often, the hurdle is the lack of funds necessary for such business growth. More aggressive entrepreneurs could consider looking for investors to infuse the much needed capital into their business.
There are different ways through which this capital can be infused. Prospective investors may or may not want to be involved in the company in exchange for the money that he puts in. Regardless of what the arrangement is, the fact remains that the business owner will have to come up with a convincing pitch that will be attractive enough for the potential investors. You have to nail your investor pitch and gain the confidence of your potential investor.
You already know what’s in the deal for you, more capital. Your potential investor would naturally want to know what’s in it for him. If he is totally uninterested in what your business is all about, he will be less likely to want to let you use his money for your business goals. This means that you have to make your potential investor interested in what you are offering. Oftentimes, you only have a short period within which to do this. The most common advice given by communication and marketing experts is to keep the pitch simple yet exciting. For a 3-minute sales pitch presentation, you have to show your prospective investor that you have a business model that is worthy of his investment and that your business expansion plans can deliver great return on his investment.
An effective investor sales pitch requires a lot of preparation. You need to be clear about what your plans are and you have to be accurate in your business projections. It is easy to paint a picture of a profitable future. Keen investors will be able to tell whether you are bluffing your way into getting the capital infusion that you need. You do not necessarily have to go in detail about what your business expansion plans are during your investor pitch. However, you need to be ready with these details when your potential investor asks questions after your pitch. In all likelihood, your potential investor will ask for a copy of your detailed business plan. If he is convinced about your proposal, he will most likely want to discuss the specifics about your investor deal.
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