By Paul Lewis
1. Be brief, be bright, and be gone. Get to the point quickly and get out. Use a prototype or other visual aid to get the meaning of your product across quickly. All you are trying to do
during the first pitch is get an opportunity to discuss your product in more detail. If the potential investor is not interested, do not be a pest. Instead, chalk it up as a “no” and try to figure out where the train fell off the tracks so you can do better on your next pitch.
2. Do not tout top line revenue numbers. Instead, clearly state how you are going to make a profit and what those margins will look like on your bottom line. An investor is really only interested in ROI (return on investment). If you state you will build a $50M company but have no idea about profit margins, you are missing an essential part of the financial equation.
3. Keep the discussion to the product, market, and opportunity. Unfortunately, the potential angel investor isn’t interested in your personal life (at least not at this time). Don’t say things like, “I have poor credit and cannot get a loan on my own,” or, “My mother is sick and I really need to make this work.” Stick to the product, the market, and the opportunity.
4. Discuss what competition exists and why your product is better. NEVER say you do not have any competitors! This is a big turn off to an investor. Do you research and know your market.
5. Keep it REAL – Do not make up ANYTHING! Never say something just because you think that is what the angel wants to hear. You may get a second meeting, but the deal will crumble there. Save your time and energy by staying true to yourself from the very beginning.
Top 5 Tips for the Pitch - Summary
1. Be brief, be bright, and be gone.
2. Talk about the bottom line.
3. Keep the discussion to the product, market, and opportunity.
4. Do your research and know the competition.
5. Keep it REAL.