3 Business Pitching Sins And How To Avoid Them

Gaining funding for a start-up, especially if you’re new to business, can be a very challenging task. There are many pitfalls that should be avoided when pitching potential investors. With this in mind, we’ve collected together 3 business pitching sins, made by many new business founders, and how you can avoid them.

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  1. Being unprepared

Before you approach potential investors, being completely prepared should be number one on your to do list. Do your market research and have realistic financial forecasts and answers to questions such as: ‘how much will it cost to get a customer?’, ‘When will you turn a profit?’ and ‘what are your main competitors currently doing?’

Another great way to make an excellent first impression is to have already formed your company. This can show a level of commitment that will demonstrate to investors you are serious about your business. If you’re daunted by the prospect of forming a company, have a look at our online company formation service packages: https://blog.eformations.co.uk/prices-packages/

Get a good business address. When initially communicating with potential investors, having a London business address on communications can really help your future business look great. If this is something you believe may help your company, you can find more info on business address services here: https://blog.eformations.co.uk/address-service/

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  1. Asking for more than you need

When starting a business, you may think that asking for more money than you need is better than having to struggle. However, having too much can cause the business to spend money on less essential areas and have a complacent approach. It’s better to start lean as it will keep you focused and you’ll also be able to raise the cash quicker.

It is also important to have a reasonable prediction of how much money you genuinely need to start the business. Work out all of the costs you can and make educated predictions for others. By outlining these costs in your pitch, you’ll also demonstrate to your investors that you’ve thought about it all.

  1. Making hard to keep promises

One of the biggest things that will put off investors is hearing phrases like ‘we are planning to’ and ‘we will do’. Pitching on a promise is a bad idea. More experienced entrepreneurs will simply state facts with a few personal interjections that support their case for investment. Don’t ask investors to bet on your future before you’ve taken any risk yourself.

Need help starting your business?

At eformations, we’re here to help your business get off to a great start. From a fantastic easy to use online company formation service, to a brilliant business address service and much more, we’re here to help you succeed. If you’d like to find out more about us, please visit our website: https://blog.eformations.co.uk alternatively, we’re always happy to have a friendly chat with you to answer any questions you may have. Just give us a call on 020 8232 5479.

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