HomeBUSINESS7 Common Business Pitching Mistakes and How to Avoid Them

7 Common Business Pitching Mistakes and How to Avoid Them

In the United States, new businesses have a 10% success rate of surviving their first year. To grow a new business, you must be willing to put yourself out there, network, build a customer base, branch out to new markets, and create partnerships. 

A business pitch is a business idea presentation of your business plan to potential partners or investors.

When seeking these business relationships, taking the time to write a business pitch is a must. However, to craft a successful business pitch, you must first understand what may hinder your success when presenting your pitch to potential business connections.

This article discusses seven common business pitching mistakes and how you can avoid them. So read on!

1. Lack of Research

One of the biggest mistakes you can make when presenting your business idea is not doing enough research. When pitching ideas to investors, you should be informed of your competition, startup costs, maintenance costs, business projections, target market, profit margins, and the scale of the business.

A successful pitch should explain your business in a small amount of time while describing your initial and long-term plans to achieve your goals.

Not only should you do all the necessary research on the ins and outs of your business plan, but you should also research your potential partners. Look into their previous investments, the sizes of businesses they typically work with, and whether they’re already partnered with any of your competitors.

Many investors will not work with competitors, so knowing this information before the meeting ensures that everyone is making valuable use of their time. 

2. Not Knowing Your Target Audience

Your target audience is one of the most important things to nail early in your business venture. Understanding your target market ensures that you’re able to put yourself in the shoes of the consumer and market your business in a way that creates interest in your product or service. 

In a business pitch, it’s not uncommon to be asked, “Who is this for?”. By showing that you understand how the consumer thinks, you also demonstrate an ability to adapt and a clear direction for your brand voice. You can provide more accurate research into their buying habits. 

3. Inability to Answer Questions

Before stepping foot into any business meeting, you should already be an expert in your business. If there’s one thing you can guarantee, it’s that business investors will ask questions, and the last thing you want is to be on the spot with no idea how to answer them. 

Preparation is key to being ready for any question that comes your way. Research common questions and prepare answers, even if you have to write them down to commit them to memory. Don’t forget to anticipate the tough questions, as potential partners will often ask several questions to seek out potential flaws in your plan. 

Want to appear more confident in your meeting? Practice answering questions out loud ahead of time. 

4. Not Addressing Potential Pitfalls

It’s okay to believe that you’re business has the potential to become a great success, but not mentioning any potential obstacles can harm your business pitch. Investors don’t want to see that you have a flawless business and expect everything to go by without a hitch; they want to know that you’re prepared to handle challenges. 

Be upfront about potential problems you expect to encounter and your plan for handling them. Addressing these challenges shows that you’re prepared to take the initiative to find a resolution. 

5. Lack of Structure

Every business pitch needs structure; otherwise, you risk delivering an unclear message and leaving your potential partners feeling lost. Presentations that are hard to follow may result in more questions than answers, making it seem like you don’t have a clear vision for your business idea.

Plan out your talking points ahead of time, and while it’s okay to go off script (see #7), you don’t want to go off tangents that aren’t relevant to your pitch. Having a loose structure is also a great way to stick to the arranged time frame without rushing to include all of the critical talking points. 

6. Unclear Business Goals

When pitching a new business, it’s essential to have both short-term and long-term goals. Both show potential partners a clear timeline of where you hope to steer your business. Without business goals, these partners may ask themselves, “what’s the point?”. 

Short-term goals demonstrate what you hope to achieve in the initial stages of your business and how you plan to overcome obstacles. Long-term goals show the bigger picture vision of your company once it’s found its footing. 

7. Sticking to a Script

While structuring your business pitch is valuable for keeping to time, including all pertinent information, and staying on topic, your pitch shouldn’t sound like you’re reading from a script the entire time. Anyone can come up with a business idea, but investors are looking for something unique that only you can bring to the table. 

By allowing your personality to shine, you encourage them to invest in you, not just your business idea. Showing confidence during your presentation is a great way to make them feel confident in your abilities to make your business successful. 

Don’t Make These Common Business Pitching Mistakes¬†

Pitching a new business is often one of the most intimidating parts of any startup. How your pitch is received can be the outcome that makes or breaks the future of your business. Avoiding these common business pitching mistakes will help you nail your pitch and put yourself on the path to success.   Do you want to find more tips for success in the business world? Check out our business section. 

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