How to Throw the Perfect Pitch

You have an idea for an interesting new business that you believe will make waves in your industry and beyond. You have checked out your prospective competition, drawn up a business plan and assembled a team – you’re ready to take the leap.

At this point, securing investment for a venture is a hurdle almost all entrepreneurs face, and often with some trepidation. It involves spreading the word about your idea, connecting with prospective investors, and then defending your argument – often from people with far more experience in your industry.

This is one of the most difficult stages for any entrepreneur. So much rides on these meetings – how to get it right? There is no “one-size-fits-all” formula when you are preparing a pitch for potential investors, but here are a few tips that I have picked up over the years.

One of my first presentations did not go well. Investors had asked to see me about Student magazine, which my friends and I launched as teenagers. Flushed by our early success, I talked at (not with) our potential backers, telling them about my ideas for extending the Student brand beyond publishing to travel, hotels and music â(euro) [ and scared them off. They did not invest in our magazine.

Twenty years later, when I was hoping to launch Virgin Atlantic, I was much more aware of my audience as I pitched the idea to my fellow directors at Virgin, and then to a Boeing executive. Though our group had no experience in the airline business, by then I had learned the valuable “KISS” strategy: “Keep it simple, stupid.” It is important to present a clear plan that investors can easily understand and repeat to their own colleagues and advisers – avoid baffling people with jargon or complicated presentations.

I described our plan for taking business from the established airlines with flights tailored to the needs of business-class passengers, and also by offering an affordable service that would attract vacationers. Our focus on improving service, bringing fun and glamour back to air travel, and our record of success in the music industry and other businesses must have impressed the Boeing executive. He soon agreed to lease us a 747. My colleagues took a little longer to became enthusiastic.

The most important difference between those two presentations was that I put myself in my audience’s shoes. Before you meet an investor, do your research: Has he or the company he represents made similar investments? Does he understand your sector or have experience with companies similar to the business you are in? Tailoring your presentation to that person’s knowledge of your industry will keep him interested.

Attention to detail is critical. Long before the day of the presentation, make sure you go over every claim, statistic and projection in your business plan, check them over thoroughly, and commit them to memory. Know the markets you are going to target, your competition and how you plan to make your mark, and be prepared to defend your argument. What are its weaknesses?

Before you pitch, it is best to do a practice run with trusted colleagues and advisers so that they can provide feedback. Get each person to play devil’s advocate and point out the issues you haven’t thought of and problems not yet on your radar. Try to make sure your colleagues aren’t telling you what you want to hear, but are telling you what you need to know. Were your listeners persuaded? What did they find memorable? Could they repeat your message back to you? Consider their advice and suggestions carefully.

If you’re preparing for a short meeting, pick three key points that will stick with potential investors. These should be things like: What makes your product or service different? Will it improve your customers’ lives? Why would people buy it? Write these points down on a piece of paper or even your shirt cuff, and then be sure to keep your message focused. With luck, your potential backer will be intrigued enough to call you back for a second meeting.

Dress to make a good first impression. The success of companies like Google, Facebook and Twitter means that not every prospective investor expects – or would be impressed by – a suit and tie. However, being on time and well-dressed will help to build early rapport.

As you make your presentation, how you listen can be just as important as what you say. Pay attention to your audience’s reactions and take the time to ask if they have questions. If it appears that you are not getting through, try to adapt your pitch to focus on the areas that interest them.

If your proposal is rejected, ask for feedback. Did the investors understand the idea? Do they have suggestions for improving your product or service? While their comments may be negative, it is important to keep in mind that their criticisms are not indicative of your chances of future success.

Remember, finding investors to provide the sum you need for launch can be a long process. So make changes to your pitch if necessary, tjhen move on to the next meeting, because overcoming adversity is the mark of a true entrepreneur.

© 2012 Richard Branson

Distributed by The New York Times Syndicate