Careers Business Ownership How Entrepreneurs Can Effectively Pitch Business Ideas to Investors Take the right steps to secure the funding you need Share PINTEREST Email Print PhotoAlto / Getty Images Business Ownership Operations & Success Business Insurance Sustainable Businesses Supply Chain Management Operations & Technology Marketing Market Research Business Law & Taxes Business Finance Accounting Industries Becoming an Owner By Marco Carbajo Marco Carbajo Marco Carbajo is a credit specialist and owner of Business Credit Insiders Circle. His expertise includes guiding businesses and start-ups in securing funding without putting personal assets at risk. Learn about our Editorial Process Updated on 06/25/19 Many entrepreneurs have big ideas that could shake and take the world by storm. However, 99% of them lack business funding and in the long term end up leaving all the ideas to die just like that. This is because there is a very large gap between having a great business idea and implementing it fully. This gap that exists can only be filled by raising funds. There are so many people who might be willing to invest in your small company but can only do so if you prepare a good pitch that excites and inspires potential investors like in the TV show Shark Tank. Securing a financial investment for your companyis more like an interview in the sense that you must convince the investors why they should risk their money and assure them that they will get back their money back plus profits after a certain period. You need a pitch that persuades, excites, inspires and motivates an investor. You need to do thorough research about the products your company will be launching in the market and how unique it is from others. Here is a look at what investors look for in a pitch and use them to gain funds for your business. Choose the Right Audience As an entrepreneur, before airing out your idea to an investor, it is advisable to be keen on what type of investors you are pitching your idea to. It is because different investors can only finance your businesswhen it is at a specific level. It is good to start pitching your ideas to angel investors according to the experts. Your business audience plays a very big role when it comes to the issue of being financed by an investor. After identifying your right audience, it is good to craft your presentation in an appealing manner. Set clearly all your objectives and goals of your business and state the time period as well. Narrate a Story Pitching your ideas to investors in an effective way has never been an easy thing especially to startup companies. The best way to present your idea is narrating a story. This means that all your ideas must stay connected together such that all of them should flow flawlessly. You must not only say how your company is going to take over the world, but you must support it with ways on how to achieve that as well. As an entrepreneur, you must craft your pitch in a very convincing manner. You should not rely much on the current situation of your business, but rather concentrate more on the future. You are the driver, take the wheel and connect the ideas. Make it a page-turner by crafting a plot that is cultivating. Be Courageous To effectively pitch your entrepreneurial idea to investors, you need to show them the part of your business that hasn't been touched and tell them that if the unexplored potential is done, the business will boom. You have to persuade every investor that you meet how the financing is going to shake up the industry and do things in a different manner. When it comes to pitching, you have to convince an investor how the infusion of funds shall help you accomplish the goals. The capital deployment of the investor must be taken care of in your pitch as well. It is because every investor wants the money they use to fund your business to earn returns. Have a Simple Yet Incisive Pitch Many entrepreneurs go wrong in their pitches when it comes to presentation. It is because many tend to think that using difficult language might earn them points. However, this is just a misconception. The purpose of the pitch is to reveal the business objectives and how funding would aid to expand it and how it should be simple to understand. It is therefore good to use simple language while preparing your pitch. Use a language that even a child in your neighborhood can understand. Craft your pitch based on KISS ( Keep It Simple, Stupid) principle. The concept of the business should also be easy to understand and should never be long. Keep it short and straight to the point. Speak Up About the Sales If you are an entrepreneur who has started recording sales, it is good to mention them when pitching to potential investors. Mention the sales and make sure that you lay them out within a timeline. For example, you could say that after only five months, we have made $100,000. After stating that in your pitch, the next challenge is to prepare for questions such as " how are you going to maintain the sales" among many others?". When an investor risks their money into your business, it means that your business will expand. Thus, your pitch should state how the company is going to accelerate the sales when the company grows. Set Strict Timelines In any form of business, an entrepreneur needs to work with deadlines. Set certain objectives that must be met within a specified period of time. When it comes to fundraising, it is also good to set deadlines for investors. It is because setting of deadlines will give investors a reason to think and see the seriousness that you have for your business. The more commitment you have for your business, the more dedication the potential investors will have in helping you out. Thus, it is good to set deadlines for yourself and make potential investors aware of them. If you are a serious entrepreneur therefore who has been looking for funds without success, then the above tips will turn around that whole scenario. It is because the elaborated tips have not just been taken from anybody but rather from CEOs of different companies.