Undoubtedly, failure is inevitable part of success. This does not mean that entrepreneurs should seek failure. Failure itself is useless if there is no lesson learned. From the beginning of their startup venture, all entrepreneurs in one way or another have to pitch their businesses. And this is the place where they start making mistakes. There are different reasons why these mistakes are made – no experience, under performing or over performing, lack of confidence – the list goes on and on.
By knowing, which are the most common mistakes entrepreneurs make when they pitch investors, every entrepreneur can prepare better for their next presentation. Here you can find a list of seven common mistakes, which entrepreneurs make while pitching, and try to avoid them at your next pitching event.
Pitch to the wrong investors
Many entrepreneurs think that it is good idea to pitch their businesses to all investors they meet. By making efforts to increase their opportunities, many startup owners waste their time and the time of the investors by pitching to people, who are not interested in investing in their niche. Before you meet with the investors – do your research!
Give unnecessarily detailed presentation
Most investors that you are going to pitch in front of are experienced and know exactly what they are looking for. Make sure that you give them the right information, which can convince them that your company is the right company to invest in. Avoid providing so much information – this can easily backfire, especially if your pitching time is limited.
Showing that your business has no weak sides and no competition
Early stage businesses are vulnerable and investors know that. By presenting the idea that you have no weak sides in your startup, no competition or no important problems to solve can give the wrong message – or you don’t know what is going on in your business, in your niche and market, or you chose not to be honest about it. Both are not working in your favor.
Pitch like the startup is a one man show
Many entrepreneurs forget to include information about their team in their pitches. Investors want to know the people behind your product and your whole company, so they can make clearer decision. Team strength wins investment more often than you can imagine!
Lack of direction and long – term strategy
The lack of clear strategy for the future or presenting unrealistic expectations can be taken as a big disadvantage by most investors. The investors need to know your expectations: where your company is going, how it is going to grow and where it will be in 5 – 10 years.
Giving unclear answers
It is very likely to be asked some questions by investors before, during and after your pitch. The last thing that an investor wants to hear is an unclear, confusing or even bad answer. Stay focused and make sure that you understand the question right before you start replying. If you have problem with understanding the question, do not hesitate to ask – this is not a problem, the problem comes if you reply incoherently.
Don’t answer the question: How is your product or service better than the rest?
Investors want to know what they put their money into, so make sure that you give them the information they need to have. What makes your product better than the rest? How are you different from the competition? Make sure that you have good response to these questions, because they are truly important. Investors are looking for fresh and unique companies, which have innovative products and services.