Date: 11 May, 2021
For independent writers, putting thoughts and ideas into words and images can be fun and fascinating. But for a startup, the game changes significantly. Pitches can be the most daunting, nerve-racking experience for many, as the discerning investors consider each pitch like an audition with a cost attached to it. They put their money very carefully and only when completely satisfied. So it’s necessary for you to not just hone your skills regularly to build powerful narratives, but also master the process of pitching, in order to tell your story in the most hard-hitting manner.
Many a times, even the most sought after entrepreneurs get intimidated by certain questions posed to them. So here we’ve discussed some essential and very sensible questions that can be pondered over to ace your next pitch. You also need to ensure that your pitch deck is short and sweet that takes the point home for investors. So, all that you have is the initial 60 seconds to grab the attention and engage them with your proposition. Okay, let’s dive in now:
Who is your ideal customer?
This is a core question for high-concept pitches when you seek funding to start your business. Therefore, you need to have a very clear picture about who you are selling your product or service to. In a nutshell, who is your customer? If you are not well-prepared for this question, then you won’t be able to market your business. This question involves your strengths and weaknesses, and also the comparison of your product or service with your competitors’ and much more.
Why now & how long will this last?
Falling second in the queue is this question- How long will this last? Investors ask this because a lot of startups experience a sudden growth spurt on their way and sometimes, the absence of a long-term strategic plan to maintain sales levels or scale the business further, causes them to crash land.
Therefore, preemptive thinking is a must for every startup because in this fast-paced system, one loophole is enough for your competitor to overtake you and lead forever. That’s why strategic planning in advance is a must to ensure the sustainability of your business.
These questions are asked by investors because the timing of entering the arena is a huge factor that decides the future and fortune of a startup. Leaders feel that time & market scenarios either allow your company to grow or prevent it from thriving. Therefore, your need to answer the question very clearly and succinctly like an astute, knowledgeable observer.
What is your Vision?
Answer this accurately because your response is going to be a great deciding factor for your success or failure. Investors do care about your idea and vision but they also need to know about you, your teams, and your plans. Tell them, make them visualize how your creative idea will work wonders. For investors, it’s simply about making money with your ideas. Therefore, this question is on the mind of every investor and they will ask you in order to know more about your vision and eventually foresee if you can take them higher than ever. Answering the question with direction and specificity will increase your chances to get funded. To answer it sensibly, you need to prove your competencies to win in the market and indulge them in your mission. This will excite them if done correctly.
What is your response to Crisis?
An entrepreneur gives her heart & soul to the business while crafting passionate ideas but what if sudden crisis forces her to let go the dream? Investors do ask such questions to entrepreneurs to let them know the practicalities and hard facts of the world they wish to live in. Through this question, investors get to know your understanding of unforeseeable events and how you would work your way out with minimum damage. Having an effective answer to this can lead to better planning and encourage entrepreneurs to make a foolproof plan that will protect their idea during tough times.
Why should I invest in you?
You will surely encounter this question in more ways than one. An investor invests not just in your business model but also the overall idea of intelligence, work ethic, passion, determination, morals and values. So you need to be someone who eats, sleeps and breathes the business.
At Rockstud Capital, we screen value creator companies with huge addressable market and scalable business models on the basis of the aforementioned parameters. We identify investment opportunity at early stage, which enables us to create large value / multi-baggers for our investors. To know more about us, visit: https://www.rockstudcap.com/
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