10 Ways to Get Investors to Listen to Your Business Pitch Wooing investors is a challenge even for entrepreneurs who're enthusiastic about their business. Here are ten tips on how to craft your investor pitch.

By Carol Tice

entrepreneur daily

Opinions expressed by Entrepreneur contributors are their own.

10 Ways to Get Investors to Listen to Your Business PitchIf there's one thing I've learned from a couple decades of talking to small-business owners, it's that entrepreneurs are always excited about their business. But translating that enthusiasm into a pitch that makes investors plunk down their money is a whole different ballgame.

Appealing to investors is a skill unto itself, but it can be learned. Here are ten tips on how to craft your investor pitch:

1. Keep it short. You should be able to quickly describe what your company does and why it's innovative in 30 to 60 seconds. Be engaging and let your enthusiasm show.

2. Pitch the right investor. Most venture-capital firms and angel investors have an industry they know well and they make most of their investments there. Concentrate on finding an investor who knows your business and can offer expertise, not just cash.

3. Know the competition. Be prepared to describe the size of your market, who the major players are, their market share and how your offering will be different and make customers want to switch.

4. Have your numbers ready. How many customers do you have? What's your customer-acquisition cost? What are your revenue projections? How much free cash flow is the business generating? If you can't supply these basic financial metrics, you're in trouble. Or as Shark Tank's Kevin O'Leary likes to say to entrepreneurs who stumble on their figures: "You're dead to me."

5. Pitch your experience. Many investors want to see that you have prior experience that will help keep you from making newbie mistakes with their money. Previous leadership at a startup that successfully went public is ideal. Though, if you don't have that, pitch your team's collective attributes. For instance, experience in the industry, experience in business management at a bigger company or at a previous startup can also look attractive.

6. Don't sit on your assets. If your company has valuable intellectual property -- a patent, trademark or proprietary piece of software, for instance -- play that up. Investors like a company with a hard asset that could be sold off if the business doesn't make it on its own.

7. Mention your own investment. Investors like owners to have "skin in the game" – that is, their own money on the line. When you invest in your own company, outside investors know you're committed to your idea. The pitch "I have a great idea but no money, why don't you give me yours?" doesn't usually get very far.

8. Make realistic projections. Investors are often skeptical about hockey-stick shaped growth charts. Be ready to explain your forecasting methods and why you're confident sales will rise.

9. Know what you'll do with the money. How will this funding help your company grow? Provide a precise answer, as in, "With this money, we'll hire 50 new sales reps in new territories."

10. Make an "ask." Have a precise figure in mind, and close by asking for it.

What pitching tips you would add to this list? Let us know in the comments section.

Carol Tice

Owner of Make a Living Writing

Longtime Seattle business writer Carol Tice has written for Entrepreneur, Forbes, Delta Sky and many more. She writes the award-winning Make a Living Writing blog. Her new ebook for Oberlo is Crowdfunding for Entrepreneurs.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Related Topics

Social Media

With This LinkedIn Algorithm Change, Your Best Posts Could Reach New Readers for Years

It's one of many new features rolling out on the platform in 2024.


Save Big on Airfare with a Dollar Flight Club Subscription for Less Than $60

This discounted Dollar Flight Club subscription can turn dream trips into reality.


The CEO of Catholic Prayer and Meditation App Hallow Says Founders Need to Be Part of Something Bigger Than Themselves

On this episode of "The CEO Series," learn about the soulful journey of Hallow's CEO and founder Alex Jones.

Growing a Business

5 AI Hacks You Need to Know About in 2024

Despite its vast potential, the key to leveraging AI effectively lies in balancing automation with human oversight to avoid pitfalls and ensure that creativity and decision-making remain human-driven.

Money & Finance

How to Know If Your Business Is Profitable This Very Second

It's important to periodically take stock of your business status, but don't wait until the end of the quarter or Tax Day to know. Too many decisions you need to make depend on your profitability. Here are things you should be doing regularly so that when you need to know where you stand, you know.

Side Hustle

20 Side Hustle Ideas for Summer 2024: Part One

Instead of spending money this summer, prepare now to make extra cash through the following side hustles while still enjoying your free time.