5 Keys for the Entrepreneur Pitching to an Investor

You’re running a business and now feel ready for an investor to come in and provide capital, partnership or mentorship. On Thursday of last week, Centonomy’s Entrepreneurship Program Manager, Cate Njoki, was on a panel of investors during USIU’s Entrepreneurship Week with NEVA. Other panelists were: renowned Kenyan businessman Manu Chandaria, NaiLab’s Sam Gichuru, ihub’s Executive Director Josiah Mugambi, Resolution Health’s Peter Nduati, Entrepreneur Boot Camp’s Eric Kinoti, Barclays’ Marketing Executive and KCB’s director.

During this session dubbed ‘Shark Tank Relations‘, ten entrepreneurial USIU students had the opportunity to pitch their products and services to the investors. As you prepare your own pitch, there are lessons to learn from this experience, and here are some of the things that investors will be looking to hear from you:

     1. Potential for Growth
A great business idea is dynamic, not static. It has the potential to start small and then blow up. (Click here to Tweet). As you prepare your pitch, consider the question, “Is it possible for me to go from making sh.100 with this product to sh.100,000, sh. 1 million and beyond?”

Take your time, grab a pen and paper, and write it down. For your business to go from sh.100 to sh. 100,000 what course is best?

2. Know its ins and outs
For an investor to put time and money into your business, they need to be completely confident that you are a good investment. The way to demonstrate this is to demonstrate that you know what you’re talking about.

Some questions that you’re going to asked include:

• What have your sales been over the past year, quarter or month?
• Of these sales, how much is the profit?
• What is the future forecast for your product or service?
• Who are your supplies?
• Why have you chosen these suppliers?
• How can you reduce your current cost of running your business?

3. Understand your Competition
Many entrepreneurs go into business with the mind-set of becoming like their competition. This is a flawed mind-set because if you all look alike and offer the exact same thing, there’s no reason for the consumer to choose you. You want consumers to consciously and deliberately choose you (Click here to Tweet). During your pitch, answer the questions:

• What is your Unique Selling Proposition? This is what sets you apart from another business that provides the same exact product or service.
• How are you reaching your market? How do you get people to know about your product or service, and buy into it?

4. Own your Idea!!
If the investor gets even a hint that you have no confidence in your business, they will not buy into you. Buy into yourself first. Believe in your product or service first. Be your business’ biggest fan. When you are your product’s biggest advocate, it is easier for people to buy into your natural enthusiasm and trust. They will trust your product because they trust you, and you trust your product.

5. Know what you want from the Investor
Before you get up to deliver your pitch, have an end-game in mind. For instance, are you looking for a mentor, a partner, an investor or business incubation? The panelists are going to ask you, “So, what are you looking for today?” Consider your ideal outcome and consider too, what you are prepared to give the investor in return.

Smile 🙂 , deliver your pitch naturally and conversationally, be informative and show your business’ best side.

Let’s chat: As an entrepreneur, have you ever had to stand infront of a group and talk about your business? If so, what would you do differently if you were to do it all over again? Comment in the section below, and let’s also continue this chat on Facebook and Twitter using the tag: #CentonomyEntrepreneurChats.

Waceke Nduati-Omanga runs programs on Personal Finance Management and Entrepreneurship. 

Find her at waceken@centonomy.com| twitter @CekeNduati| Facebook.com/CekeNduati