How to pitch for growth finance
Potential investors have seen your business plan and are
interested in finding out more about you and your business. A
face-to-face meeting will be arranged: this is your chance to pitch
and secure the growth finance you need. This guide will help you
understand what you need to do and say to investors to encourage
them to part with their money.
Who should attend
- A team of three is ideal for the pitch: the owner,
the sales director and the finance director.
- You should all participate in the pitch because
investors will be keen to see the quality of your management team
and gauge their industry expertise and experience
How to prepare for the pitch
- Put aside a lot of time to prepare
- Research the investors you are pitching to; meet them before
the pitch if possible; and determine their interests
- You need to think of the reservations an investor will have
about spending their money on your business: have a clear business
strategy and know how to address their concerns
- You have to show the investor why and how they will benefit
from investing
- Set out your terms. Include:
- what is expected of each party
- the kind of exit strategy available to investors
- growth targets
- any warranties and indemnities
- The investors will want a question and answer session at the
end: think carefully beforehand about what these questions could be
and prepare to answer them
- Consult with a financial adviser or specialist accountant
before your meeting.
- You are also well advised to speak with a legal expert.
- Plan well. This way, you will not feel so intimidated when you
pitch
What the pitch should include
- Prepare a one-page executive summary with updates on anything
relevant which has happened to the business since they saw your
business plan
- Your SWOT analysis detailing your company's strengths and
weaknesses and the opportunities and threats available that apply,
is at the core of the pitch
- Market opportunities should be identified, as should a list of
your customers
- You need to be able to tell them what your USP is
- You need to provide detail on your size, procedures, products,
services and suppliers
- Give the investors historical and forecasted details on your
finances: prepare
- balance sheets
- cashflow
- profitability over a set period
- You need to keep financial targets about your growth potential
realistic
- Provide them with a holistic evaluation of the company and be
clear about why you need investment
- Don't be afraid to point out risks as well as benefits
Getting the delivery right
- The pitch should last between 30 minutes and an hour
- You need to engage your audience and give them plenty of
relevant information
- Present in a professional manner
- If you are using Powerpoint, don't clutter up the screen with
too much information
- In case the technology fails, make sure to have paper copies on
hand to give out
- You have to show your enthusiasm, commitment and passion for
your business and its future prospects
- But be realistic about your goals
- Your conclusion should re-cover all of the important
points
- At the end, find out when the investors expect to get back to
you with a decision
Checklist
- Put aside a lot of time to prepare, research and perfect your
pitch - at least a couple of weeks
- Consult with a financial adviser or specialist accountant
before the meeting
- Speak with a legal expert before deciding your terms
- Have all of your information ready: forecasts, cashflow,
profitability and SWOT analysis
- Prepare a professional presentation - and be realistic and
enthusiastic about your business's growth prospects
FAQ
What are the most common pitching mistakes: what should I
avoid?
Make your pitch short, compelling and snappy, and avoid any
technical jargon or verbose, complicated theory. Keep it to around
half an hour, and don't overrun. Base it on real figures rather
than hypotheticals, and make it real to the investors: give
examples. Get them thinking about how your business could do
something for them. Try not to rely too much on visual tools like
Powerpoint, and instead use the pitch as a platform to present your
team's skills along with the business's promise.
Resources
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