As an experienced investor, I’ve taken thousands of pitches every year before, during, and after my tenure on the TV show Shark Tank.
In fact, there are a few key factors to remember when presenting a winning pitch.
If you’ve ever seen the show Shark Tank, then you know that pitching your product to a group of millionaire investors can be a nerve-wracking experience.
But don’t worry – even if you’re not a natural salesperson, there are still ways to make sure your pitch is winning and getting the investor’s attention.
In this blog post, we’ll share some tips on how to pitch your product to a shark (or any other investor).
So read on and get ready to wow them with your innovation!
“I believe your idea, product, or service deserves the best possible chance at success.” -Kevin Harrington
Pitch Tip #1 – easy to understand
If it takes a college degree to understand the pitch, it’s too complicated.
After taking numerous pitches (over 50,000 in about 30 years), the best advice for entrepreneurs is that you have 6-8 seconds to grab my -and other investors’- attention.
The main characteristics of the idea or project must be transmitted to the potential investor in a few words, directly and concretely.
Let the business model be very clear.
Make it powerful and attention-grabbing!
Always keep in mind that you may only grab people for a couple of seconds — so you have to tease, please and seize their imagination.
Pitch Tip #2 – solve problems
If your product doesn’t solve a problem, you’ve got a potential problem of your own — consumers aren’t as likely to buy it.
We all like to imagine people buying something just because they like it, but in reality, people are more likely to buy things that solve problems.
Make sure what you are selling solves a real problem that your customers face.
All sharks, including myself, love it when the pitch presentation involves a magical transformation and proof of concept.
Give them the “wow” moment and show off your features and benefits and display the magical transformation that will take place in their lives.
Remember that people buy with emotions, so make them see it and feel it with amazing demonstrations
Learn how to pitch your product in 3 steps.
Pitch Tip#3 – show the research
Let’s say you’re pitching a product to me.
If you want me to believe everything you’re saying, I want to know one thing—I want to know about the industry and more about the competition.
The more data—facts, figures, and statistics—you can present in your Perfect Pitch, the better.
This information proves, without a doubt, why your product or service is unique and how it alone solves a particular problem better than any other solution in the current marketplace.
It also shows that you’ve done your due diligence and that you are well positioned in the marketplace.
Ultimately, prove how your product or service beats anything they can find on Amazon or at Walmart.
It’s all in the research.
“Put in the time on the front end before making your pitch and you will reap the success on the back end.” —Kevin Harrington
Pitch Tip#4 – marketing plan
It’s essential to present an outline for your marketing plan.
Your marketing strategy for your product or service should always be focused on building your dream team.
If your investors know who is on your dream team, then they’ll feel more confident about investing because they will see that you brought the best people for the job.
Here are some people to include on your dream team:
- Board members
- Legal advisors
- Financial advisors
- Industry experts
- Social Media & Marketing experts
Having the right people on board in their appropriate roles, you have completed your dream team.
A dream team helps you grow and scale your business.
They provide expertise in key areas and keep you from making mistakes.
It’s vital to have your dream team in place before making your Perfect Pitch.
Pitch Tip#5 – show the money
Sharks want to know where their money will be going and to make sure it’s used wisely.
They also want to know there’s a concrete plan to pay it back!
If you aren’t clear on your needs and how you’ll use the money, it will be difficult for an investor to get behind your plan.
Here are some questions to consider:
- How are you going to use the proceeds if advanced to you?
- Why are you raising capital?
- Is it to expand operations?
- Invest in more inventory?
- Hire staff to build the business?
- Buy new operations machinery?
These questions are frequently asked on Shark Tank.
More often than not, those businesses that didn’t have prepared responses walked away with little to nothing.
Sharks are hesitant to invest with those who put in work but don’t take the time to analyze their growth strategy or assess their needs.
If you can keep these five things in mind when pitching your product, you’ll be well on your way to landing a deal with the sharks and investors alike.
If you’re ever feeling nervous about presenting in front of investors, just remember – we’ve all been there.
The most important thing is to stay confident and have a clear vision for your product.
Good luck out there, entrepreneurs!
Have a question for Kevin and his dream team?
Feel free to reach out to get your business questions answered today!