Many young startups pitch their valuable ideas to business angels to gain some finance to their companies. But many just forget what really needs to be pitched to the investor. Due to this reason we can see that out of every hundred pitching actions made only about 10 succeed. It is like 10% of the people who pitch to the investors or the angels only pitch it the right way.
There are 8 silly mistakes that people make when they pitch to the angels to finance their business.
1.lack of simplicity in content
We as humans always believe that the more we elaborate on something convinces a person more and same goes to convincing an angel. But in reality what we don't know is that this time has passed. The modern business environment is an environment which keeps everything simple. So it is really important for the applicants to keep their content simple to the maximum possible level.
2.lack of sharpness
As you all are startups you need to be very much focused on the sharpness in your convincing activities. Rather than misleading the investor the it is better to always be sharp and clear cut with your product or service. The angels always believe in the fact that if you can't pitch this to them accurately how could you even afford to convince the customers.
3. Using the "wrong mode"
It is always better to use the correct mode to convince the angel investor. It would generally be good if you use a physically visible mode. That is rather better than pitching over the phone. It is always better for you take chances to make appointments with your investor. This would depict the urge you posses to win your product. This would also develop that trust which is really essential for being approved by him/her.
4. Safety first approach
A startup becomes successful if he doesn't want just himself to earn but he wants his business to grow. When investors see that you are more or less trying to secure your self over cash they tend to think whether you are the right person to invest on. Initial stages of a business need an exponential growth. If you show up your personal finance interest the investors tend to lose trust on you.
5. Blinding the investors
When you as a person seeking finance start hiding up the difficulties that would come to your business in the future, the angels who see them from their insight lose trust on you. They tempt themselves to believe that you either "don't know" or that you are just trying to "trick" them. So it is better that you explain to them the potential issues to your business in future.
6. Missing out the topic of "team"
As a business is a team game, no angel would want to invest in a solo player. Solo players appear far more riskier to the investors than team players. So it would be important to put up a topic of your team. This would generally convince them more because they will believe that you possess leadership skills and that their money is not put in to high risk as a team controls adverse behaviors.
7. Missing "What they want" part
The what they want part is in reality the customers. They need to know who their real customers are. Most people show up sheets of profits and other documents to convince their investor. But they don't show the angel who their true final customers are. Identifying the customers is really important as it otherwise appears like a scam.
8.Not prioritizing the "END"
The end is what matters most in terms of communication. It is what keeps the other party interested in you even after it is done. Most people just close off silently and vaguely but this doesn't make the angel want anything more from you. If the end is "hot" he will feel curious and even would change his mind to give it a try.
If you avoid these silly mistakes it is for sure that you are going to get your angel to invest in you.
Written by: Bclique Staff Writer
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