Mildly put, there are two kinds of investors you may have to pitch to as an entrepreneur:
1. The “judges” investors.
These people are not actual investors since they do not invest their personal money into business. The host provides the money to be invested.
They merely listen to business pitches in order to help their host select qualified candidates and investible entrepreneurs.
You can see these judges in shows like The Pitch Nigeria, The Next Titan, YouWin, and others.
Pitching in front of these judges may not be as rigorous and brutal as pitching in front of say, Angel Investors.
2. Angel Investors.
Angel investors are more brutal, ruthless and very keen on picking not just the right candidate but the right business.
Since their money is at stake they can be very picky and unpredictable in many cases.
You could loss investment because the investor does not know much about your industry, or the investor is asking for more equity than you’re willing to spare.
You could see such investors in Shark Tank, Dragons Den, Elevator Pitch…
I’m not sure if we have a program that allows investors to invest their own money into the entrepreneur’s business in Nigeria.
This kind of pitch requires that you leave no stones unturned.
Before you attend any of these pitches, you MUST ensure that:
1. Your business has a unique value proposition.
2. You’ve gained traction and proven that there’s a market for your business.
3. Your business has a proven revenue model.
4. Your business has a high profit margin (especially for angel investors… Judges may invest in a business just to support a dream. Angels rarely do that)
5. You have mastered the art of effective communication, self confidence and personal presence.
6. You know your target market, the market size and the future of your business.
7. Your business is sustainable and scalable. Angel investors hardly invest in a self owned and managed businesses. Those are often seen as “Service” not a real “business”.
8. You must be clear on how much you want and what you intend to do with the money.
9. You must KNOW YOUR NUMBERS.
You must know your startup capital, working expenses, cost of production, cost of customer acquisition, sales and revenue, future projections, break even analysis, marketing expenses, etc.
10. You need to know the investors you’re pitching to. This will help you to know who and who you need to work with and why. Investment is not always about capital… It’s also about getting someone who can give your business a boost.
I will be organizing a zoom webinar on THE PITCH MASTER CLASS where I basically show you how to increase your chances of winning a deal by helping you improve your presentation skills.
Does this sound interesting to you?
Talk to me in the comment.