Don't Contact

Here are 10 mistakes every small business owner should avoid when pitching to investors:

1. Don't Contact Every Investor you Know 

When looking for an investor, do your research. Not all investors are interested in every type of business, and not all investors are willing to invest the same amount of money. Talk to your friends, your connections, industry association, local Chamber of Commerce, accountant and lawyer.  Ask them for recommendations of investors and then find out everything you can about them.  Find out what types of companies they have invested in previously and at what stage of business. Generally this type of information can be found by the investor’s website, but you can also make use of social media platforms like LinkedIn and Twitter to see who they are talking about and who they are talking to.  

 

Once you have completed this research, target the one or two investors who you think best fit your business. This research will save you time from pitching to investors who are not interested, and will help to demonstrate that you have done your due diligence. 

2. Don't Cause Death by PowerPoint 

Find the right balance between providing enough information to interest investors, but not so much so that the investors get bored and have little time for questions. If you’vebeen given an hour to present to an investor, create enough slides to take you up to the 30 minute point and then 30 minutes for questions and answers. This should be approximately 12 to 15 slides.

 

And it’s not just about the number of slides. Make the slides visual as well as factual.  Include results from surveys, product tests and provide any client quotes or insights you have gained. If you have a product or prototype, make sure it’s fully charged and ready to demonstrate to the investor. If you can hand out samples, do it, everyone likes free stuff.

3. Don't Get Thrown Off by Questions 

Before attending the meeting, put yourself in the investors place. Think about the questions you would want ask: how large is your target market, who are your competitors, why is your product better than your competitors, how much money have you made, what are you growth plans? Also be prepared to supply alternate strategies.  If an investor doesn’t agree, for example, with your marketing strategy, have another answer on the back burner.