I’ve sat on both sides of the pitching table and know what can make the difference
I’ve sat on both sides of the roller-coaster pitching table. These 5 things are what can make a colossal difference.
But first, there is one huge mistake to avoid. And I see people doing this almost daily. Aspiring entrepreneurs have a brilliant idea. They put a shout-out on social media for someone to write their pitch deck, sometimes alongside their entire business plan.
It makes me wonder why they don’t seek someone to run their business for them as well.
At the other extreme, others dedicate every entrepreneurial breath to raising investment, convinced that such a deal is all that is needed in life for riches to flood in.
Undoubtedly, when VCs stepped into the Angel territory of start-ups, as the more established company deals started to dry up, it spawned opportunity.
But it also led to a whole host of misconceptions. One colossal one is that you can shout out on social media, and a success fixer will appear with a magic wand.
Here’s the truth: Successful pitching starts with the founder doing hard work and perfecting the 5 Ps.
Investment is a specialist area. Few founders are experts in it. Many, therefore, mess up their chances of investment at business conception.
They fail to get a specialist solicitor and accountant involved to set up the first balance sheet, articles, sales rights, and the potential for tax relief. It is a small investment at the start and a potential deal-killer later, as these are key things any investor will look at.
Many early-stage founders do not understand the structure of a balance sheet and a company’s capital set-up. Investors are more interested in what money has gone in, the valuations of similar businesses, and the market opportunity than they are in over-enthusiastic projections.
If you have ever watched Shark Tank or Dragons Den, you will know that a wrong valuation is an almost guaranteed route to failure. It is also one of the quickest ways to antagonize a shark — or a dragon.