How to Pitch an Effective Business Idea
One of the abilities that business people must have is the ability to identify consumer needs. This ability is not only for the consumers themselves, but also to attract the attention of other potential consumers, clients and investors.
The important thing in starting a business is determining the solution to a phenomenon amidst consumer needs. After knowing consumer needs, what can be done to attract the attention of these clients or investors?
The pitching process starts with offering products and services to how to market the product. This idea doesn't need to be unique, but it should have the potential to capture a portion of its target market. It cannot be denied that conveying a business idea is one of the most stressful parts, even for professional business people.
Effective Ways to Pitch Business Ideas
Whether you are a business developer, or a startup founder, you will always need ideas to grow your business. It is the concept used to establish a company and drives everything about the company's actions. Here's an effective way to pitch your business idea.
1. Know and recognize potential partners
Given the benefits and high stakes, the more you know about a potential partner, the better. Therefore, before pitching, pay attention to the following things:
Industries that investors invest in
Investors do not invest carelessly. Some companies only focus on certain sectors. It is not uncommon for investors to immediately reject the offer before pitching. This is most likely because the business sector does not match your interests. To avoid this, make sure you know your potential partner. Knowing the types of companies to invest in can help you adjust your pitch and target your targets.
Investor track record
To determine the types of companies they typically fund, dig deeper into the investor's background and history. From there you can assess the suitability of potential investors for your company. If it is suitable then there is a big possibility of establishing a partnership.
You need to remember that investing is more than just receiving money. You will enter into collaborations that are likely to last for a long time, and affect your business. Therefore, know and recognize your potential partners. Make sure you have chosen the right partner.
2. How to present yourself
While ideas and skills are important, your personality is just as important. According to research published in the Harvard Business Review, investor interest in a startup is not seen from a competent company. However, based on their perception and belief in a character. Therefore, build your own character.
Jennifer Fonstad, one of the founders of Aspect Ventures, admitted that in entrepreneurship essentials, investors value the dynamics between teams as very important. Investors want the way the team has worked together before, thinking patterns, complementary skills, and the possibility of accepting different perspectives or ideas.
Apart from that, before pitching, prepare what investors will ask you. Then practice the reactions and answers you will give.
3. Tell about the problem that will be resolved
When explaining your business idea, focus on the problem you are addressing, and the means used to solve it. You can create scenarios or stories about complaints reported by consumers or potential consumers.
After that, show how you and the company will solve the problem. That way you can show investors your potential and business ideas at the same time. Not only that, investors will also know what kind of people and teams they will partner with.
4. Pay attention to important details and information
In general, investors try to see and determine your pitch from the way you think and present opportunities. Therefore, pay attention to several important things that you need to remember when making a presentation, such as:
- market size;
- plans to retain and attract consumers;
- plans to prevent competition;
- the ability to adapt products to the market;
- make a profit; And
- amount of capital investment required.
After making a presentation, create a tagline or closing that summarizes your business idea and company values. Create something that attracts attention, so investors will always remember your business idea.
5. Provide a roadmap
While they support new ideas and change, ultimately investors want to know how they will benefit from the partnership.Therefore, pay attention to the final strategy you are aiming for.
Take a look at some of the options available, such as acquisitions, mergers and Initial Public Offerings (IPO). Even though investors seem to support all options, you need to think about which method is best to use. Apart from investors, also pay attention to the profits your company will get.
Each investor prioritizes different data and information. If you start by selecting the right investors and can match their needs to the proposed market opportunities, your chances of getting pitched will be higher.
To apply business concepts in the form of a real business plan, company executives need to pay attention to all economic aspects including the industrial environment, business and managerial aspects.
Through the Business Development Planning program, company executives can increase their competency in creating comprehensive business plans. Not only limited to pitching, business planning can also be implemented in real life.
