It’s not difficult to search the internet for entry-level information about creating a pitch deck for your business, but what happens after you deliver your pitch?
Venture capital or private equity investors provide funds to companies exhibiting high growth potential.
In exchange for the capital they provide, they receive equity stakes.
Private investors take the investment risk expecting to earn a substantial return as companies succeed.
After you deliver the perfect pitch to investors, the funding won’t start following immediately.
You’ll need to prepare for a host of business meetings.
The pitch will only get you in the door, but the Pitch Master Academy also prepares you for what you’ll need to have in place to secure funding.
It would be best if you kept the investors interested during your series of follow-up meetings.
CONSIDER YOUR FIRST MEETING LIKE A FIRST DATE
Your first in-person meeting may not come easy – the first meeting is not where you will secure a final decision.
Expecting a commitment during your first meeting can lead to frustration, feelings of rejection, and a sense of failure.
When you finally lock in your first meeting, consider it a conservative first date – do not expect an initial commitment.
If you come across too strong, it’s less than likely that investors will take you seriously enough to get a second date – and you’ll need a second date.
The first meeting is somewhat of a screening process, typically with an investment firm associate – this meeting is analytical.
It’s best to go to your initial meeting alone. If necessary, only bring one person and make that person a significant player in your business.
As a result, you will be able to build a one-on-one rapport.
Also, this will prevent the associate from having to process seemingly competing visions or conflicting answers.
First Date Rules
- Go alone
- Do not expect a commitment
- Be prepared to answer questions
THE SECOND MEETING
Once the first meeting date goes well, you’ll likely get a second meeting, but this time it will be with additional partners or associates of the investment firm or investor.
This meeting is more complicated because you’ll have to pass beyond the suspicions of multiple people.
Be prepared to repeat a lot of information you communicated during your one-on-one first date.
Typically, there will be no known content in the second meeting, only follow-up content, unanswered questions, and unfinished topics.
Based on your feelings about the first meeting, you can prepare yourself for follow-up questions by asking yourself:
- What might they ask in response to information provided during the first meeting?
DILIGENTLY DIGGING DEEPER AFTER THE PITCH
The third meeting is typically the diligence meeting, which takes place once the investors are comfortable.
Experts at Pitch Masters Academy teach students how to prepare the perfect pitch and the strategies needed to ease through the series of meetings after that.
Having a solid business plan is critical.
Scheduled diligence meetings allow analysts to ask detailed questions about all the numbers associated with your overall business plan.
Content for Analytical Questions During Diligence Meetings
- Inventory
- Product lifespan
- Number of customers
- Client base
- Major Expenditures
- Past, present, and future financing
- Improvement and growth strategy
- Personal Questions
It is important to remember that the investors’ responsibility is to dig deep for unforeseeable problems. The diligence process helps to discover pitfalls that may occur.
Ambiguities may arise, but do not fret the process because they are not ordinarily deal breakers.
The Full Partners Meeting
The full partners meeting is usually the final step during the courtship, and investors often apply pressure during this meeting.
- Expect to walk into a tense board room.
- Anticipate being interrupted throughout your final pitch.
- Know that the odds of getting an investment are relatively high at this stage.
Investors need to visualize the quality of your team and the potential of your business model. As a result, the best ventures will go through the wringer. It’s your job to navigate the process professionally, don’t get emotionally distracted, knowing that the ultimate result could lead to an influential and wealthy ally.
PITCH MASTERS ACADEMY MEETING MAP OUTLINE
Get fully prepared so that your business can succeed after your first pitch. The series of meetings are likely to include the following:
- Pre-Screen Meeting: Quickly assesses a worthwhile opportunity.
- First In-Person Meeting: A conservative first date to get to know the business.
- Second Meeting: Second set of eyes for the partnership.
- Diligence Meetings, Conversations, and Deskwork: Prioritizing the investment based on the numbers.
- Full Partners Meeting: The broader audience meeting allows partners to socialize and uncover any lingering questions.
- Optional Final Partner Meeting: This is where final decisions surface.
- Denouement Meeting: This conclusive meeting is to go over the term sheet, confirmatory diligence, and finalize the investment agreement.
The Pitch Masters Academy will get you to the end of the process successfully. Creating the perfect pitch requires so much more than simply searching the internet and creating a business plan.
Visit www.PitchMastersAcademy.com and register for the next course to learn the steps you need to know to avoid unwanted pitfalls.
Ensure your business gains investors’ attention out the gate by connecting with influencers and experts who know how to present your business to wealthy allies.