The Second Pitch

One of the most important days in your life will be the first time you pitch your idea to investors.  And I will tell you right now that you will fail, with out a doubt.  First of all they know more than you about new businesses because they've invested in more successful companies then you've created.  They will poke more holes in your business strategy and "big idea" with in the first five minutes then a block of swiss cheese.  

But once that's over and done with you will know what to expect so I wanted to present a couple of ideas about how to go about your second pitch to investor's so it doesn't turn out like the first blood bath.  

First things first, sit down with your business partners and write down all the questions that you weren't able to answer decisively in the first meeting and answer them.  However, don't work them into your presentation.  Just be informed and know your company in and out.  When the questions start flowing you'll be comfortable this time.

Second, scrap that Power Point presentation with a 56 slide deck that put the investor's to sleep. Practice using slideshows with strictly visuals or animations.  A great way to do this would be to create a visual info graphic that is designed to match your brand and reports important information.  According to Zabisco 90% of information transmitted to the brain is visual and visuals are processed 60,00 times faster in the brain then text.  This will help get your idea across to the investors.  Most of the time investors won't invest in a company because they claim they don't understand the concept when in reality it wasn't explained properly or effectively.

Next, bring a prototype and include the investor in the pitch.  Let him or her hold something and play with it. This will do a couple of things according to Kimberly D Elsbach from the Harvard Business Review.  They will respond better if they feel they are participating in the presentation and it will present the idea to the investors that you are a collaborator.  This will also lighten the mood and level the playing field.  

Finally, keep it short and sweet and just know your company and your margins.  As long as you know the answers to tough questions you are almost better suited leaving them for the investors to ask.  By answering with confidence it will be more impressive then just giving them the answer up front.  Use the presentation to tell a story to your audience and engage them.  This is far more important then going over projections on investment return.  Trust me, that'll be the first question they ask.