Impressing investors is one of the first steps toward getting your business running and is an important part of the process of raising capital whenever you start expanding. Consequently, having a sound business plan is one of the most vital parts of your pitch to potential investors. However, you are just one possible investment that they will be hearing from, and you need to be certain that you don’t accidentally look unprofessional during the presentation. Avoiding these common mistakes will help your pitch to get accepted.
Don’t Report Rumors
Having detailed information on your industry and your competition shows that you know what you’re doing and have a solid plan. However, bringing up rumors and unsubstantiated claims, especially about other companies in the field, does not instill confidence in investors. Only answer questions or report information that you have confirmed, both to maintain professionalism and to make sure you don’t accidentally say something untrue.
Don’t Overpromise
You probably have confidence in your company and in your ability to deliver. However, you still need to be realistic with that confidence. For example, saying that you can have a product delivered in under a year when most companies need two for similar projects can make investors think you’re naïve or haven’t accounted for every risk. Accounting for unexpected delays or possible cost overruns in your estimates may keep you from being able to make predictions that you want, but they also show that you understand the need to be cautious.
Don’t Focus on Style
Having a big, flashy presentation with attention grabbing gimmicks sounds nice, especially if you want your project to stand out, but all of that takes time and energy that will already be in short supply. Your business plan needs to communicate information clearly and concisely, and few things harm that professional image quite like inadvertently wasting time on things that look nice but don’t say anything. The same advice goes for fancy props and effects during the presentation. They look nice, but they rob valuable time away from making your pitch.
Don’t Overexplain
In contrast to showing too much and saying too little, you also need to avoid saying too much in the initial presentation. The investors are there to hear what you have to say about your business venture, not to listen to every detail about the company. They know the information that they want, and if there are more questions beyond the content, they will ask, and that will be your chance to show off your research.