If you’re an entrepreneur with a startup, then you know that pitching your business to investors is essential for securing the funding you need to grow. However, making a good impression on potential investors is easier said than done. And if you make any of these common pitch deck and presentation mistakes, you could very well lose their interest before you’ve even had a chance to explain your business.
1) Not Understanding The Investor.
You can’t impress someone if you don’t even understand what they are looking for before you present your business idea to them. Take time to do some research on each investor that you want to pitch to. This will not only help you understand what they are looking for, but it’ll also show the investor that you have a genuine interest in talking to them.
2) Showing Weakness On Your Team.
While a startup is founded by a group of people, one person should stand out as being at least somewhat experienced because it’s typically that one person who will be making the major decisions. Investors know that a startup is risky and could fail, so they look for people who have been there before and understand what the grind is like.
3) Being Difficult To Get In Touch With.
Since you may not always be available when an investor wants to contact you, it’s important to have a professional-looking website with your contact info listed. When an investor does want to get in touch with you, being difficult to get in touch with will definitely turn them off.
4) Not Having Financial Reports Ready To Go.
Before meeting up with an investor, be sure that you’ve got your financial reports in order because it shows that you are organized. And when presenting your business plan, make sure to fill the investor in on any progress updates since your last meeting, including any milestones reached by employees or temporary issues.
5) Making Major Changes To Your Business Plan After You Pitch It.
Once you’ve pitched your business plan to an investor, it is important not to make major changes to your plan unless you’ve run them by the investor beforehand. Why? Because if they are investing in your company, then they have a say in what happens with your business.
6) Not Having An Exit Strategy In Place.
An exit strategy is when you think about how you will sell your company if it gets to that point. This is important because once you start making profits, investors will start wanting to cash out their investments which means figuring out how the company will be sold.
7) Arguing With The Investor.
Whether you agree with them or not, don’t let your emotions cloud your judgment when they do not agree with you. It’s always best to remain calm and educate them on why they are wrong and then try and find a way that both of you can be happy with your business plan.
8) Not Being Prepared To Answer Questions.
What happens when the investor asks you a question about what makes your business different from your competitors? Or what makes your product better than the others on the market? Be prepared to give them an answer because you don’t want to seem unprepared.
9) Expecting Big Things To Happen Quickly.
While it would be nice for investors to hand over a large sum of money and watch you succeed, that’s not always the case. Some investors are happy to give multiple rounds of funding in order for your company to grow at a steady pace. So, don’t expect to be handed over one lump sum unless you’ve proven yourself worthy.
10) You Have Unrealistic Expectations For Your Business.
While it may be your dream business, if you aren’t realistic with the stage of your business at this point in time, then you are probably not ready to pitch it to an investor. Make sure that you only pitch the idea when you know it’s something that is actually doable and has a high probability of success. Otherwise, you risk losing an investor before you even start.
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Although pitching to an investor can be intimidating, it may seem a little easier with these tips. Remember that your startup is only as good as the investors who believe in it so you have to show them why they should keep believing in you. If you’re ready to make the best pitch presentation for your investors, click here.