A pitch is the way you convince investors that your company is worth funding.
Speaking on Money Moves with Kalilah Reynolds Business Development Consultant, Dr Sheldon Campbell said a pitch is a brief speech telling investors why your business should receive funding.
There are two types of pitches; the elevator pitch and a pitch deck.
The elevator pitch is usually delivered in 30-60 seconds, about the length of time you would be in an elevator. In this time the business owner will have to persuade an investor by describing the business, the problem it solves and the benefits that the business brings.
“You would just try to tell a potential investor four things. Generally, you’d talk about the product, the product name, then you’d want to define a problem during that time, then you want to show the solution. Additionally, name a key benefit or two,” Campbell explained.
“If you can do that in 30-60 seconds, then that’s one elevator pitch.
For example, Campbell used the fictitious company ‘Food Unlocked’.
“Nice to meet you. I have this product called ‘Food Unlocked’. What it does, is that in the middle of the pandemic we deliver food to persons who are quarantined. Some of the key benefits is that people don’t have to worry about finding friends or family to carry groceries to them,” he said.
He said the potential investor should be able to easily understand what your company does and the benefit that its existence adds.
He noted that business owners can convey a lot of information in 30-60 seconds.
However, a pitch deck, while still relatively brief, is a longer, more detailed form of pitch.
Campbell noted that this is the form of pitching typically seen on reality TV shows such as Shark Tank. This pitch can be anywhere from five-10 minutes long and is accompanied by some kind of visual aid.
“It’s some of the aspects of the business plan, but you’re trying to do it in five-10 minutes,” Campbell said.
“You’re really trying to let the investor get a high-level idea of the business. It’s like a business plan because you’re trying to get in all that information; the problem, the solution, your marketing and financials, all of that,” he explained.
He emphasised that a great pitch is key to securing funding for your business.
“Even though you’d think ‘oh, it’s just a couple of minutes’, … investors are looking for you to be robust,” he said.
“You’d want to ensure that you have a strong leadership team, that your marketing is covered so that when they ask questions, you won’t be fumbling,” Campbell said.
He also encouraged business owners to practice their pitches and become comfortable knowing the information as it will instil confidence in the investor.
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