Getting funding is much harder these days for entrepreneurs. Most funding initiatives have hard-to-reach requirements and private funders want tech, tech and more tech innovations. For you to stand-out you need to come up with a strong business pitch. Think stronger than entrepreneurs who pitched on Shark Tank South Africa. And you need to know how to craft a pitch for funding.
A business pitch is a concise and compelling presentation or proposal. The pitch outlines the key elements of a product, service or business idea with the aim of getting funding for it. This is (one of) the best ways for start-ups and entrepreneurs to get funding and support for their incredible ideas.
To have a better chance of getting the proper funding you need, you must have a really good pitch. Start-ups and new entrepreneurs need the best pitches as investing in your business comes with huge risks for the funders.
This article discusses key parts of a strong funding pitch and how it can help launch your business successfully. So, without further ado, here’s how to craft a pitch for funding.
Craft a Compelling Narrative
You might be thinking you don’t need a backstory for your pitch but it’s rather important. The backstory of your idea showcases how your business will change the lives of many people, will make profit and solve a problem that currently exists in society. As an example, imagine speaking about the hardships of load shedding and using that as inspiration for a solar-powered appliance range that is affordable for everyone.
Remember, your backstory has to evoke an emotion and show the authenticity of you and your business.
Highlight the Uniqueness of Your Business
Make your business standout. It’s rare to come up with a new business idea but very common to come up with a new way of doing an existing thing. For example, many companies sell ice-cream but selling vegan ice-cream with edible packaging provides a different approach.
Emphasise how user-friendly your design is and any tech integrations. Use real-world problems to showcase how the idea can be implemented in the market immediately. Showcase how much of a game-changer your idea is!
Establish a Solid Business Model
If you have a business idea that has similar principles to an existing model, do research to see where you can better your idea. If you are building something in e-commerce look at the models of Amazon and Takealot. These businesses prioritise robust e-commerce ecosystems and have a customer-centric approach.
Create a thorough layout of your business operations, revenue streams and market analysis that supports your strategy. This will help you build up confidence to pitch and increase investor confidence.
Practice, Refine and Repeat
Perfecting your pitch is an ongoing process. You will find mistakes along the way and will want to introduce improvements to the idea as you do more research and get feedback. Practice with fellow professionals, family and friends. You can also research pitches that were successful to get an idea on how to get closer to that same success.
Remember, the aim is to create an experience and make potential funders feel immersed in your idea. You want to leave a lasting impact.
Use Humour to Lighten the Atmosphere
Humour can help you relate to everyone and also make your pitch memorable. Infusing humour into the pitch can also create a sense of approachability. Find a moment to use your wit and humour and make it enjoyable for everyone.
You are there to pitch a serious business idea, but humour can help take away some of the nerves you may have, and it will leave a lasting impression on potential funders. However, don’t force it if it doesn’t work, you want to come across as witty and not like you’re trying too hard.
Venture Capital Platforms for Funding
The most likely place to get funding for a start-up is through venture capital firms. Venture capitalists focus on funding new businesses which have a potential for long-term growth and success.
Some of the venture capital firms in South Africa include:
The Angel Investment Network — The firm focuses on helping start-ups get access to funding. The platform has over 300 000 investors worldwide.
Kalon Venture Partners — This South African venture capitalist firm invests in high-growth technology companies. The company provides growth capital in start-ups and acquires a minority stake in digital technology companies.
Kingson Capital — This venture capital firm invests in start-ups that can potentially scale through Africa and into the US market. The company typically searches for AI-powered services and products, data analytics and machine learning products.
If you look at some of the biggest companies in the world like Google, Apple, Amazon and OpenAI, they all had to practise and perfect their business pitches before getting funding.
Take time to craft your pitch perfectly. Build a good backstory, highlight the uniqueness of your business, create a comprehensive, detailed business model and practice, practice, practice…
Incorporating these elements into your pitch will not only help with the actual pitch but it will also capture the attention of potential investors. Be confident in your idea, channel that charisma and go get that funding.
Visit SME Advice for a chance to speak to one of our experts who can provide you with comprehensive business mentorship.
