5 Elements for Successfully Closing Your Next Investor Pitch
We live in an era where the startup culture is overtaking youths and adults. It doesn’t matter if you’re twelve, twenty, or fifty; the world has witnessed entrepreneurs from all walks and phases of life. With hundreds of entrepreneurs and thousands of investors, what are the factors that can help you develop the strongest business pitch ever?
Well, your pitch deck will be a dynamic partner through all stages of your business’s growth. With each milestone of your venture, you will need to tweak your pitch and draft it to perfection. However, there are a few elements that remain constant and can help you win the hearts and pockets of your potential investors!
Have a look at them!
- A Strong Vision
Your vision statement is a lighthouse for the sharks in the corporate sea. It defines your business, shows your targets, and helps draw a roadmap to achieve them.
Let us look at some examples of startups whose vision statements left their investors awestruck –The Start-up that Keeps Babies Toxin Safe – Mamaearth
This statement not only defines the products offered by the venture, but also creates a major impact on the reader. Thus, it is obvious that it intrigued the investors in the blink of an eye and helped Mamaearth raise funds.
Make sure to fabricate your vision in an intriguing manner. You can weave stories around the core idea of your business and develop a strong vision that would instantly captivate your investors.
- SWOT Analysis – Strength, Weakness, Opportunity, Threats
The SWOT analysis helps determine the capacity of an organization to raise funds. It makes the investors aware of each variable element in the venture’s market and allows them to make an informed decision.
Hence, your SWOT analysis can make or break your pitch. It can help establish a niche for your funds. Thus, make sure to highlight the four pillars strategically and develop a competitive edge over other players in the market.
- Business Model – How Will You Generate Money?
The first and most important question of your entire pitch would be after your SWOT Analysis – what is your business model, and how will your venture generate money?
This is perhaps the part where you need to develop a strong selling point for your investors to buy into your pitch. Hence, you can use expert-designed templates and customize data accordingly to draft a flawless presentation.
You also need to be clear about the sources of revenue, which source will be prioritized more, pricing policies, profit margins, and much more.
For instance, let us have a look at Zomato’s business model. The company has three major sources of revenue – restaurant collaborations, subscriptions, and food delivery. Its clear revenue sources have helped it raise more funds and eventually enter the unicorn club!
- A Strong Plan of Action
Your investors want to know your plan of action. This part must include your execution strategies to achieve your vision and goals.
While it is easy to derive big numbers, your investors need a solid plan that would justify your need for funds and make them believe that you can make the most out of it. This can include your product launch plan, expansion strategies, etc.
Let us understand the importance of a great plan of action with the example of Sugar Cosmetics. Though the company is 10 years old and has already raised funds earlier, its recent pitch helped it win an investment of $50 Million. This was a result of its rock-solid plan of action – the company clearly defined its expansion strategies, target audience, and its plans to foray overseas and have an IPO the next year.
Thus, having a crystal clear action plan can be a venture’s biggest asset during an investment pitch.
- Clearly Defined Exit Strategy
One of the most important elements of a successful investor pitch is a well-defined exit strategy. While most people find it unnecessary, your investors often look for it. It is necessary to communicate a plan for what will happen after you establish your business, your plans to move on to the next big project, and the potential investors who would willingly buy the business from you.
Having an exit strategy also reflects strategic planning and makes sure that your investors know about your endgame plan.
While drafting an excellent pitch deck requires patience, skill, and perseverance, you can ease the task by using expert-designed templates for your presentation. From the business’s vision to its exit strategy, you can craft slides at the will of a hat and save much of your precious time by using these templates.
We hope you find this article helpful and wish you all the best for your investment pitch!
Written by Ashish Arora.
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