Entrepreneurship is a risky business. This is what makes it that exciting, isn’t it? Entrepreneurs, who believe that starting and growing a business will be a smooth ride, are up for a huge disappointment. The whole journey is like a crazy roller coaster ride with exciting ups and terrifying downs.
To cope with such an uncertain environment, the entrepreneurs must embrace risk. If you want to get where you want to be, forget to play it safe. The dangers of playing it too safe are as big as the dangers of taking uncalculated risks. To get ahead, you need to make some wise yet bold moves, especially when you need to raise capital.
Getting the right investors on board is a critical element of the growth of starting companies. Playing it safe during pitch competitions is one of the most unfruitful decisions an entrepreneur can take. Don’t settle for the mediocre when you can be the star of the show.
Evaluate your pitch to make sure you are not delivering less than you should. If you have not included in your pitch deck the following four sections, you are playing it too safe!
Challenges
Investors know that running a company is challenging. They are aware that you will face many setbacks. Don’t try to convince them that the sky is clear of clouds. Better show them your capability and determination to survive the storm!
Competition
Entrepreneurs often avoid speaking about the competition. It makes them uncomfortable, especially if the competitors are doing well enough. But passing on information about the other players in the niche market shows that you don’t see your company as a strong competitor for them. Mention your rivals, don’t hide them. Just make sure you note how you are better than them and what is your strategy to overrun them and you are good to go.
Numbers
Including your revenue model in the pitch is essential. The investors want to know how you are making money in order to understand how they will make money. If your numbers are not good enough, don’t try to hide it. If you don’t include that information, the investors will ask you afterwards. By trying to hide that information, you are just losing their trust.
Exit
Many entrepreneurs are too obsessed with their products to find the time to think about the development of strong exit strategy. The investors want to know what your end game is; an IPO or an acquisition may be? Including this information in your pitch is a great sign that you are not focused only on short-term goals. The lack of it is a sign that may be you are not having a clear plan for the future of the company. If the investors don’t see the perspective, they won’t be interested.
Of course, you want to present your business in the best possible way to make it more attractive to the investors. But you need to be honest. You must have a realistic overview of your company and to give adequate information to the investors. There are no shortcuts to success, enjoy the excitement of the journey!
