We are big fans of the web site, Startup Nation. They provide great resources for entrepreneurs and startups to be successful. One of the biggest things you will do when raising money for your business is pitch investors. There are events like venture competitions or showcases that are timed and there are private events like angel dinners that are not tight on time but you better get to your point before they get to dessert or start fiddling with their smartphone.
I personally have had to give venture presentations that were 7 minutes, 5 minutes and 3 minutes long. Different venues but they would cut the mike if you go over. Really never experienced that kind of pressure before and getting ready is similar to a professional sporting competition like the Olympics. Those that make it look easy and effortless have prepared more that you will ever be able to comprehend.
Getting to that great pitch is long process and the hardest and most effective is the elevator pitch. You know the term “tell someone about your company in the time it takes to ride up the elevator”. Here are the 10 steps that Startup Nation has compiled and they are fantastic:
1. What’s the idea?
2. What’s the status of the idea or business?
3. What market or markets does the business address and are there any testimonials or customer feedback?
4. Why do you believe you have the advantage in the marketplace relative to the market needs?
5. What’s the competition in the marketplace?
6. What’s the revenue model (such as “e-commerce,” or “wholesale”)?
7. Who’s the team that’s going to make the business succeed?
8. What’s the longer term vision, the “end-game,” for the business and the projected return on investment for investors? (some examples are: “the business will distribute big profits to investors from cash flow by year X”, or “the business will be acquired by another company for $XYZ”)
9. What’s the total funding required to execute the business plan?
10. What amount of financing are you seeking initially and what are the terms of investment?
