What You Need To Know When Pitching Your Investor
The best education about raising working capital for a business can be found in your living room every Friday night! That’s right, the TV show Shark Tank is a great way for business owners to learn on what investors will want to know and expect when being pitched. If you are not familiar with this show, you need to set your DVR to catch the latest episode. This show is based around entrepreneurs looking for a financial investor to invest in their business or great idea. The entrepreneurs pitch their idea or business in front of 5 very successful business owners also know as the “Sharks”. These Sharks are all multi-millionaires or billionaires that have proven their success with their own businesses and is looking for other great investments. The goal is for the entrepreneurs are to find themselves a partner that will not only help financially, but also that can help with their expertise. All the Sharks have specialties, and excel in different areas. Some Sharks might be an expert at selling products on infomercials, and another Shark might be an expert at franchising restaurants, but they hold different qualities and personalities. Sometimes the entrepreneur might get several offers from different Sharks, so it’ll be up to them to decide on who they think will be more beneficial to their business.
What’s great about this show, it gives you an idea on different ways a deal can be structured. Having 5 tycoons with all of them having different ways of thinking, they tend to come up with different ideas and all look at the opportunity in different angles. If you already tried to apply for an unsecured business loan and your banker denied the loan, this might be a great way to get ideas on how to pitch a potential investor or partner. Some businesses can’t qualify for a business loan, so finding a partner or investor might be your next solution. Not only do the Sharks give their feedback on the concept the entrepreneur is pitching, but they will also critique their pitch, their financials, and their valuation on the business. You never want to approach investors without having your ducks in a row. Watch some of these episodes and you’ll get a good idea on what investors like the Sharks are expecting, and what they want to know about you and your business. This will give you a greater chance of finding the working capital that your business might need.
