6 Ways to Create a Successful Business Pitch

Are you the head of a new startup that is preparing to launch? Are you an entrepreneur who has successfully navigated that phase and is now looking to create more growth via second round funding? In any case, you need the backing of investors. This means that you are facing the nerve-wracking prospect of pitching your business to potential investors. Where do you begin? You can start with these 10 great tips.

1. Create a Two-Tiered Pitch

Consider dividing your pitch into two segments. Your opening pitch should be wonderfully short and to the point. It should contain basic information that potential investors will want to know along with a hook. Ideally, that hook will wow them enough that you can move to the second tier. This is where you can begin talking about details such as how you intend to use the funding that you receive. You might be surprised. If your opening pitch is strong enough, you might not even need a closer. If you are not friends with writing you can check some lists of sites for writing help.

2. Show The Barriers to Entry You Have Created

Barriers to entry are the factors that you introduce into the marketplace that make it difficult for other businesses to compete with you. These include patents, exclusive deals with vendors and retailers, meeting difficult regulatory requirements, or simply being the first in a particular niche.

Investors love barriers to entry. It decreases their risk of losing money because your business faces too much competition. If you’ve created a barrier to entry or are working towards that goal, bring that to the table.

3. Make it Short

VC investors are in the business of giving money to entrepreneurs so that they can launch or grow their companies. Those two words, ‘giving money’ mean that these folks have people waiting in line to bend their ears with their own pitches. Don’t waste their time. Practice and streamline your pitch until you can get it out in just a few minutes. If your audience gives you a time limit, think on your feet and change things up so that your pitch is done even faster.

4. Show Don’t Tell

Bring something to the table that is more than just talk. If you have a product, bring it along so that your potential investors can look at it and touch it. If you aren’t quite at that stage, bring along a prototype, or at the very least some plans or schematics. If you are selling a service, bring a video along demonstrating the service. Include a customer testimonial or two if you have them to offer. Remember that the more sense you hit with your pitch, the more memorable it is going to be.

5. Bring Key Team Members With You

Don’t try to deliver your pitch alone. You won’t impress investors with your insistence of tackling this task on your own. Instead, they’ll worry that you don’t have the ability to put together a great team and that you won’t be able to get things done when problems arise.

Don’t go it alone. Share credit when credit is due. Bring your principal team members along with you and let them field questions in their areas of expertise. Your investors will be impressed that you’ve gotten smart and talented people to join you in your venture.

6. Come to The Table Knowing Your Target Customer

First of all, if you don’t know who is going to be most likely to spend money on your products and services, why are you asking for money? Make sure that you are ready to tell investors who your target audience is. Then, be willing to show your work. Investors will want to see your data. Have market research reports or other information that you have gathered that prove that the target customer persona you have created is on the mark. If professional market research is outside of your budget, make sure that you are able to explain your own research methodologies and why you have chosen to target this particular audience.

 

[Dhruv Bindhani]

Are you the head of a new startup that is preparing to launch? Are you an entrepreneur who has successfully navigated that phase and is now looking to create more growth via second round funding? In any case, you need the backing of investors. This means that you are facing the nerve-wracking prospect of pitching your business to potential investors. Where do you begin? You can start with these 10 great tips.

1. Create a Two-Tiered Pitch

Consider dividing your pitch into two segments. Your opening pitch should be wonderfully short and to the point. It should contain basic information that potential investors will want to know along with a hook. Ideally, that hook will wow them enough that you can move to the second tier. This is where you can begin talking about details such as how you intend to use the funding that you receive. You might be surprised. If your opening pitch is strong enough, you might not even need a closer. If you are not friends with writing you can check some lists of sites for writing help.

2. Show The Barriers to Entry You Have Created

Barriers to entry are the factors that you introduce into the marketplace that make it difficult for other businesses to compete with you. These include patents, exclusive deals with vendors and retailers, meeting difficult regulatory requirements, or simply being the first in a particular niche.

Investors love barriers to entry. It decreases their risk of losing money because your business faces too much competition. If you’ve created a barrier to entry or are working towards that goal, bring that to the table.

3. Make it Short

VC investors are in the business of giving money to entrepreneurs so that they can launch or grow their companies. Those two words, ‘giving money’ mean that these folks have people waiting in line to bend their ears with their own pitches. Don’t waste their time. Practice and streamline your pitch until you can get it out in just a few minutes. If your audience gives you a time limit, think on your feet and change things up so that your pitch is done even faster.

4. Show Don’t Tell

Bring something to the table that is more than just talk. If you have a product, bring it along so that your potential investors can look at it and touch it. If you aren’t quite at that stage, bring along a prototype, or at the very least some plans or schematics. If you are selling a service, bring a video along demonstrating the service. Include a customer testimonial or two if you have them to offer. Remember that the more sense you hit with your pitch, the more memorable it is going to be.

5. Bring Key Team Members With You

Don’t try to deliver your pitch alone. You won’t impress investors with your insistence of tackling this task on your own. Instead, they’ll worry that you don’t have the ability to put together a great team and that you won’t be able to get things done when problems arise.

Don’t go it alone. Share credit when credit is due. Bring your principal team members along with you and let them field questions in their areas of expertise. Your investors will be impressed that you’ve gotten smart and talented people to join you in your venture.

6. Come to The Table Knowing Your Target Customer

First of all, if you don’t know who is going to be most likely to spend money on your products and services, why are you asking for money? Make sure that you are ready to tell investors who your target audience is. Then, be willing to show your work. Investors will want to see your data. Have market research reports or other information that you have gathered that prove that the target customer persona you have created is on the mark. If professional market research is outside of your budget, make sure that you are able to explain your own research methodologies and why you have chosen to target this particular audience.

This article from September 6, 2016, offers crucial advice for startups and entrepreneurs on how to effectively pitch their business to potential investors.

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Mastering the Investor Pitch​

The article provides ten key tips for entrepreneurs seeking funding, whether for a new startup launch or growth via second-round funding. The central theme is to create a compelling and efficient pitch that resonates with investors.

Here are the first six tips detailed in the article:

1. Create a Two-Tiered Pitch: Design a short, impactful opening pitch with a compelling "hook" that contains basic information. The goal is to impress investors enough to warrant a second, more detailed segment discussing funding utilization. A strong opening might even negate the need for a long closer.
2. Show the Barriers to Entry You Have Created: Investors are highly attracted to businesses that have established barriers to entry (e.g., patents, exclusive deals, difficult regulatory compliance, first-mover advantage). These barriers reduce competitive risk, making the investment more secure and appealing.
3. Make it Short: Venture Capital (VC) investors are busy and constantly hear pitches. Entrepreneurs should practice and streamline their pitch to deliver it within a few minutes, adapting to even tighter time limits if imposed. Conciseness demonstrates respect for their time.
4. Show Don't Tell: Beyond just talking, entrepreneurs should bring tangible evidence. This includes actual products, prototypes, plans, schematics, or videos demonstrating services. Including customer testimonials can further enhance the pitch's impact and memorability by engaging multiple senses.
5. Bring Key Team Members With You: Avoid pitching alone. Investors want to see a strong, capable team. Bringing principal team members to the pitch allows them to field questions in their areas of expertise, showcasing collective talent and demonstrating the entrepreneur's ability to build an effective team.
6. Come to The Table Knowing Your Target Customer: Entrepreneurs must clearly articulate who their target audience is and provide data-driven proof (e.g., market research reports). If professional research isn't feasible, a clear explanation of personal research methodologies and the rationale behind targeting a specific audience is necessary. Investors need to be convinced that the business understands its potential market.

 

[Simran Rai]

This article is a valuable guide for startup founders preparing to pitch their ideas to investors. It emphasizes clarity, conciseness, and confidence, all of which are crucial when vying for financial backing. By recommending a two-tiered pitch strategy, the article recognizes the importance of making a powerful first impression and being prepared to go deeper only when interest is piqued. Highlighting barriers to entry is especially important—investors are risk-averse and need to know what makes your business defensible. The article also stresses the importance of visual and tangible elements in a pitch, such as prototypes or customer testimonials, which can make an abstract idea feel real and viable. Lastly, bringing key team members and demonstrating deep customer understanding reinforces credibility and shows operational readiness.​