Avoid Investment Pitching Pitfalls

It’s very rare to find a business that can start up and get running with zero investment and 99% of those that can, would grow much faster if they had one.

Guest Blogger Jason Crispin told iHubbub how to avoid the pitfalls that many people fall into when pitching their businesses to investors with 4 simple things to remember.

Jason said: I have worked with many start-up businesses in London, UK, sharing advice and supporting them through the initial stages of their businesses and thought I would share four of the biggest mistakes a founder can make when seeking investment.

Screw-up # 1. - Leave The Past Behind!

We are proud people and we are proud of what we have achieved over the years but do you think ‘Mr Investor’ really cares? Of course not, who cares what you read in universityhow to . Investors want to know what you are doing now and what you are going to be doing in the future. Of course add value to yourself, state why you deserve to be standing in front of them but move on quickly and talk about what is coming.

Screw-up # 2 – Answer Them

It’s all too easy to have your script and rehearse that baby until you know it front and back but when you are pitching an investor they will have questions as you pitch and you need to be able to digress and effectively attend to those. The problem people have is they want to stick to their pitch and avoid the questions. If you expect someone to put their hands in their pockets and give you their money you can bet they are going to want to be clear in what they are putting their money into.

Screw-up # 3 – Don’t Get Desperate

You are going to face criticism. Learn to deal with it! Don’t get defensive when an investor questions something you say. And when you feel like the conversation isn’t going your way don’t beg, there is nothing more that will turn off an investor than the sight of a business owner crumbling and begging for help. Instead you should remain professional and confident, justify your statements and reassure your investor why you are the person that can do the job.

Screw-up # 4 – Make Sure Your Demo Works

If you have a product to demonstrate or a system to show off then please make sure it works and you know how to use it. We have all watched an episode on shark tank or dragons den where we see a great idea that can’t be executed. Would you buy a broken TV? Of course not, you only want to spend your money on something that works and the investors are the same. Just make sure it works when it needs to!

Don’t be your own worst enemy when seeking an investment. Know your facts, know your business and present yourself and your company well. I have seen it too many times before where someone walks into a room looking for investment without doing their research first. Of course there is much more you will need to do in order to properly surprise an investor but as long as you pay attention to these 4 points you wont make a fool of yourself.

Author Bio:

Jason Crispin is the founder of Rising Power and Editor of Rising Power’s Blog, a business focused on helping small businesses exceed their potentials. Follow them on Facebook and Twitter to learn more.