As an entrepreneur, it is self-defeating if you pitch your business or solution without preparing for it. Before pitching, the entrepreneur must take into consideration several etiquettes to not look stupid in the eyes of investors.
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As a startup advisor, I often tell entrepreneurs that having a nice pitch is not the only thing they should consider when seeking to scale up the business ladder through the help of an investor. It is not enough to send a cold mail or slide into a prospective investor’s LinkedIn or WhatsApp DM.
It is better to always do your due diligence before pitching anything to anybody. Your pitch can be utterly irrelevant when you pitch to the wrong people, or the way or in a wrong period. In this article, we shall discuss five things to consider before pitching anybody about anything.
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Note The Prospect’s Niche
Investor experts have identified industry mismatch among pitchers as one of the pitfalls of getting the needed investment in businesses. This is why I noted this problem first. Understanding the investor’s niche is very important and can be considered the most important. For example, it is wrong to pitch your FinTech ideas or related services to someone whose niche or interest is solely on education and academics, and is a greenhorn in FinTech and financial services.
Some investors if wrongly pitched to might find it very offensive. To them, you simply didn’t do your research. They might see you as lazy, and some sort of joke. As an entrepreneur who wants to be invested in, ensure you get specific details about your prospects.
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Know The Best Place To Pitch Them
This is super important for entrepreneurs who need investment more than anything else. Some investors hate to be pitched to through several mediums. Experts have warned that it is unprofessional to pitch investors through WhatsApp and telephone calls. This is because these mediums are for intimate purposes. Many people make the mistake of sending a voice note to investors.
This is very unprofessional. It might be convenient for you, but it might not be for your prospects. Other experts have advised that entrepreneurs can reach prospective investors through cold emailing or direct messages on LinkedIn. However, it is important to know where investors spend most of their time. Some are always on either LinkedIn, Twitter or Facebook. But you must detect where they spend most of their time, connect with them and build a relationship before approaching them. There are cases where investors give out their emails publicly and expect to be pitched there. Finally, know your audience.
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Research On Their Pitch Preference
Whether you are seeking financial or social investment, it is important to know how an investor or journalist wants to be pitched. There are cases where investors prefer that you attach a press release to your email or simply send a direct email without any attachment. Some investors prefer to receive a pitch with a deck attached or they prefer a personal e-mail first and only after, want to see a deck.
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Endeavour To Get A Warm Intro
Getting a forward from someone who the investor has invested in, in the past, might just be the big break you need. Having the investor’s associate, alumni, partner or protege introducing you to the investor can give you all the soft landing you need. Therefore, a great step towards getting an investor’s investment is by being friendly with those who can open the gates and grant you access to the investor.
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Don’t Feel Entitled, But Begin By Asking
The big truth is this: no investor owes you his money no matter how good your ideas and numbers are. Many entrepreneurs make the mistake of being entitled, that they demand opportunities rather than request or appeal for them. When you appeal to investors, you stand the chance of being listened to. This is not to say you should sound beggarly, but to confidently ask for support. For example, this is a bad way to pitch:
“Hi Emeka, my name is Alexis and I have a FinTech startup. I’d love you to write about us. Here is some more info.”
The above statement is super wrong.
On the other hand, this is a better way to do it:
“Hi Mr Emeka, I have an early-stage startup and I was wondering if perhaps we can jump on a call for some marketing advice. Here is some more info.”
This can compel respect from your prospects, because you’re not all about what you want, but what they want too. The second example gave the impression that you understand that investors are busy professionals and you are giving them the option of finding the right time to engage in any conversation.
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