Mistakes to avoid during pitching to investors for your business

Mistakes to avoid during pitching to investors for your business

For any business start-up, the most crucial step is to organize funds for taking the business forward. Arranging for funds, however, can become a nightmare for many entrepreneurs. Being an extremely important part of establishing a successful business, even minor mistakes made while presenting your idea can lead to the loss of prospective investors and hence hinder the path towards the foundation of a successful business. But, this list here comes to your rescue, by putting down mistakes to avoid during pitching ,some vital points to keep in mind . Read on to know more.

Know your investor

If you want someone to invest in your project the first step is to get to know them well. Do your research before approaching the person or organization. Some mistakes to avoid during pitching to investors for your business.There is no need to get personally close all you need is the small official details about their area of work, so that you can use it to your advantage while pitching. Make a note of the different ideas that they have invested in earlier to find out what type of work they prefer to invest in. If you ask a person operating food chains to invest in a software business there are huge chances of you being rejected, so knowing your investor is extremely critical.

Work on your pitch

A chance to pitch can come up anywhere, a party, elevator or public transport. Some mistakes to avoid during pitching to investors.However, in these situations there isn’t enough time at hand so reduce the length of your pitch. Ideally try keeping it a minute or two long. Most people start losing interest after a minute, hence, make the pitch small and effectively highlight all the attractive and remarkable points so that the investor is intrigued in doing a business.

Your presentation

Usually start-up organizations end up of putting all their points and ideas into a presentation hoping that the investor will be impressed, but a presentation filled with too many words will cause more harm than good. When presenting, keep in mind that your slides only have a gist of the plan of action. It should be short, crisp and to the point like your pitch. Try to wrap up your presentation in 12 to 15 minutes. Generally, you will get only half an hour with the potential investor including the time for Q&A, therefore, use the time wisely.

Business plan

The pitch and presentation won’t be of any use if the business plan is not thoroughly laid out. Mistakes to avoid during pitching to investors .If the business strategy does not highlight the goals of the start-up along with the expected revenue, size of the target market, and description of the start-up management team, the investors will not be convinced. The important point is to make them realize how strong the business is.

Investors interest

Every person wants to start a new company to provide people with better facilities and give them something but that’s not how an investor would think .These mistakes to avoid during pitching to investors. An investor will only agree to fund a business if he is sure of gaining a profit; hence, you need to make sure that you mention your expected monetary gains for the next few years.

Mailing your proposal

Sending your proposal to every potential investor through email in the hope of getting a response will not yield any results because investors are swarmed with thousands of proposal mails every day. The chances of getting a call are very slim. Find unique ways of making your proposal stand out.


When you land an interview, with the potential investor, be humble. Let them ask questions. If any flaws are pointed out in your model or plan accept it and find ways to improve it. The investors have seen their fair share of business proposals and the advice they give will be beneficial. Do not be stubborn and keep an open mind while answering. The reason an investor is asks questions is because he is interested and wants to make sure that he is putting money in the right place.

Do not lie

Exaggerating financial gains and lying about them is going to get the proposal rejected instantly. The investor will want to know exactly where and how much money is being spent. Being caught lying could make a big opportunity slip through your fingers.


There might be an urgent need for the funds but showing that desperation to the investor would be a wrong call. Confidence over your business idea is very crucial


Even though being confident is good, being over-confident and bragging about the growth and profits of the business will dive the investor away. This will give them an impression that you are not realistic and will get you rejected. Try to be subtle about your approach.

Prepare yourself for your next pitch, keeping these points in mind. All the best.

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