Six points on the perfect investment pitch:
- There is capital out there, so what is in it for an Angel Investor?
Your investment proposal must sound like it can generate profits by creating a convincing proposition with clear guidelines in terms of ROI (return on investment). Regardless of what you are seeing in the press and in the media about the recession and shrinking GDP – there will always be capital out there for businesses. So, your investment proposal must always emphasise this important point.
- Keep it simple
We have seen it too many times. An entrepreneur submits a really good opportunity, but it turns out to be too darn complicated! Yes agreed, it is important to show a potential angel investor that you know your stuff – but keep your investment proposal simple and concise.
- What sector are you in?
Another major point that entrepreneurs overlook is what industry sector their business is in! Let me give you an example: ‘What industry sector is Google in?’ Think about it for one second. Immediate responses will inevitably always be: Computer technology, Software, AI, Internet. No! It’s Online Advertising! Why? Because 96% of Google’s revenue comes from advertising! So, your investment summary proposal would nominate the industry sector as Online Advertising. You do not want to lose potential investors because you chose Computers or Software instead of Advertising or Media!
- What is the Capital needed for?
Talk about your funding requirements with no shame! How do you wish to use the money that you raise? What will you purchase – and why is it needed? These are all very valuable questions, and they must be addressed in your investment proposal.
- Your career backgrounds
Include your background/experience information ONLY if it is relevant to your business or investment proposal. Do you have complementary skills that will assist you in running your business and turning it into a success? If so, talk about this. If not, does your management team have the necessary skills? Talk about this! If not, then skip it for now.
- Scalability
Does your business have global appeal? Make sure you include this if it does! Facebook, Google are scalable globally. If you would like further in-depth analysis into the terms listed above, we have written entire articles about each aspect of your investment proposal.
- Do you need help?
Do you also want to write a Perfect Investment Proposal? Do you need our help? You too can take a step forward. Contact us for more information.