This is part of a series of articles helping you, as a Business Starter, to communicate information, and in particular to improve your chances for success in finding investors. Understanding the necessary elements of a successful pitch deck can help bring you one step closer to securing the funding you need.
I think it is essential to consider these elements when developing your pitch.
Introduce your purpose
Provide a succinct summary of your company and the clear purpose of your pitch in a single declarative sentence.
Highlight an important problem. Convince investors there’s something wrong with the present. Explain what’s wrong with the world right now. Show people what’s unacceptable about “what is” before they’ll get excited about “what could be.”
Present your thoughtful, logical, and fact-based solution to the problem. Prove that you have done your homework and know how your solution will fill the gap in the market.
Many investors, particularly the most aggressive, will not consider an investment in companies targeting a small market segment. Define the broader market size and identify the segment that your specific solution will currently address.
Show knowledge of what other solutions are out there. Why are they failing? Why do they not fill the gap you are proposing to fill. How does your solution fit within the market?
Product or Service (Demo/Prototype)
Include a video link of the Product/Service offering where possible. Include any feasibility studies, or a Customer or User analysis, that you have done.
What is the greatest current challenge you are facing that might benefit from a relationship with your investor? Show you are committed to identifying and overcoming the limitations of your approach.
Business Model (Go to Market strategy)
Acknowledge uncertainty and admit mistakes in the history of your organisational journey and explain how you dealt with them. Which sales channels are you going to focus on and what is your distribution strategy. Why is this a special time to be involved with the business?
Milestones (Past & Future)
Traction is your key focus as CEO. You need to grow sales with efficient use of capital. But sales growth is not always positive. If you are pitching a business with a longer (but uneven) track record, show how you have reconceptualized or recontextualized your business. Find other people to vouch for your idea through evidence collection.
Show how the business has developed with metrics related to revenue, number of customers, team growth, and important events or milestones like capital raising rounds.
What is the experience of your team? Why is it relevant for this specific opportunity? Show confidence in your ability to learn and become even better. What specific skills might you need from your targeted investor to help you build and grow?
Remember, many investors believe a management team is the most important determinant of business success.
Include details of your funding needs & plans. Don’t only include an excerpt of a spreadsheet and a list of items you would like to spend on, but think about how your investor target can become a partner in the business. How much money you’re asking for and what you’re offering in return.
Where is your firm or opportunity domiciled? What is its legal structure?
What else would you like to see?
Remember that investors are looking for you to succeed. They want to hear the best idea they’ve ever heard from you. They are hoping you are providing the solution to a problem that they can be excited about and that they know other people will be excited about too. Give them a great story!
Please advise us of any suggested additions.
What’s your favourite missed opportunity? (the unknown one your firm didn’t invest in that still hasn’t made it into the billions?)
Please comment below?
Contact us if you would like help.
Imagine trying to put together the best football team, but only from people that Alex Ferguson personally knows, or the people that he knows, personally knows. Warm introductions might work at specific points in time, but it’s often best to respectfully pitch your story directly to investors that might be interested.
We can help you with your search. Contact us via info (at) littlesquarecapital.com