What Makes a Great Startup Pitch?

Introduction:

There are several startups that pitch to venture capitalists and angel investors. Some of them are okay and a few of them are best. However, there have been plenty of reasons that can hit all the essential aspects of a pitch, only a few of them took up by angel investors and venture capitalists. There are certain qualities that need to be considered while making a great startup speech. The following are some tips to make a good pitch to make a great speech to stand out to investors;

Describe A Real Customer Story:

If possible, it is good to open the pitch by explaining a real real-life story which can help to address the problem of the product or service and accordingly solves the same in the marketplace. It is advisable to use simple language in pitch and avoid technical words and buzzwords.  It is good to keep it realistic and simple as much as possible. In the end, people will always remember the story one tells and will also share the story with other people, thus it is important to have some compelling clients who can share the story with others.

Note Down The Essentials of The Business Model:

There are many entrepreneurs who deliver the pitch as if they are standing in an auction and bidding for their things. It should be as the entrepreneurs are required to address each and every aspect of the business in a single go. However, it sometimes leads them to become anxious, nervous, and tense.

It is always advisable to be relaxed and make sure that while giving the pitch you should not look nervous or tense. It is good to give priority only to the essential things of the business that one wants to share and must stick to only these essential things. Be prepared and confident while giving a pitch.

Outline The Business Model:

The business model itself shows investors how the idea will convert into an economically viable one. It is important to explain and show the business model properly. For example, Euro Cars, its business model can be described as follows;

✅ It is a car- the sharing company with membership.

✅ Customers pay according to the hours of travel

✅ Reservation  can be made online

✅ Reservations traveling long are easy and simple to make

✅ The services cover Delhi and NCR region

Ensure That The Business Model and Ideas are Crystal Clear:

In case someone is not able to understand the business model or grasp what is being explained, then, in that case, it is good to be prepared to provide a good pitch. A bad pitch may be one of the reasons for such unclarity communication. Avoid the use of tech talk, acronyms, etc.

It is advisable to keep the pitch short, and to the point. Practicing of pitch on some people in the organization is also a good thing and also takes feedback from them about the pitch and business model and tells them to ask questions. The process may sometime become an eye-opening exercise.

Explain About Yourself:

It is very important to note that investors invest in people first rather than the idea. In fact, some investors may ask to keep posted about the next business idea as they like to invest in the people and new ventures if they find you reliable and trustworthy.

Thus, it is good to explain to them about yourself and tell them about your achievements in the past and most importantly the recent ones. It is a good practice to tell them how you are a good fit and mention your past experiences with other professional colleagues.

Explain To Them About Your Recent Business Venture:

This simply means sharing success stories of yours. Since the inception of your business, what have you achieved so far, and how have you achieved this. Sometimes, entrepreneurs left out this aspect in their pitches.

Investors mainly want to know about the choices of the customers and also about other investments of the company, lettered letter of intent to partner, key media placement, key hires, product and customer milestones, etc. As the founder of the company, it is expected that you are well aware of all this information and this will show the investor that you every aspect of the business and that you can sell his or her company to them.

Address Competitors in The Market:

First of all, it is advisable not to say that you do not have any competitors. This is a really stupid mistake to say this. However, most of the time young and new entrepreneurs do this. It is to be noted that every business has competitors and that it may be direct or indirect competition.  Thus, it is recommended that you need to address the competitors.

Give The Numbers That You are Expecting in The Upcoming Years:

It is important not to provide an exact figure that you are expecting your business to cross within a particular period of time. For example, it is not good to say that the turnover of your business will be the in the next three years as investors will not rely on or believe in it until and unless you have done this with another investor in the past. Rather, you should share the assumptions about the business model. For example, if you are into the software business, you should provide details something like the following in c

✅ The average site traffic and base of customers

✅ 200,000 guest visits per month on our network of online websites

✅ 1% average conversion rate

✅ 2000 new leads can be captured every monthly

✅ The monthly churn rate is 6%

✅ The average lifetime value of a customer is 30 Months

✅  The average revenue per user is $160

✅  Customer Acquisition Cost  is $12.50

While providing the aforesaid information, you must see if the investors are noting down the information and calculating the same as well. In case you see it, then it’s a good sign as it suggests that they really wanted to know your thought process and see if it matches the requirement.

Finally, Show The Product:

 In most of the pitches, entrepreneurs do not show their actual product. For some businesses, it is not easy to show a product, however, most entrepreneurs pitch their product for funding to investors. In case the product is not built, then it is recommended to show the dummy product.

For more information about Startups that can really help you, Click here- What are The Startup Funding Options in India