In today’s turbulent economic climate, securing business funding can be a minefield for entrepreneurs. With credit from banks drying up, many small business owners are turning to alternative forms of funding such as angel investment. However, this can put added pressure on those who are not used to ‘promoting’ their business in front of potential investors. Here is a list of top 10 tips to help entrepreneurs deliver a successful pitch:

1. Elevator pitch – Business owners should be able to pitch their products or
   services in any circumstances, even when they have a very limited amount of
   time. An elevator pitch is a quick, yet comprehensive, overview of a business
   short enough to be delivered in the time span of an elevator ride.
2. Prepare – As Mark Twain said “It takes more than three weeks to prepare a
   good impromptu speech.” Pitching to a potential business  angel could
   dramatically change the future of a business. Preparation is key to take
   advantage of this opportunity.
3. Setting up the stage – If possible, it’s always ideal to prepare the room of
   the meeting well in advance. This is especially important if the pitch includes
   a product demonstration or the use of multimedia aids.
4. Look your best – A common concern for small business owners is choosing the
   right clothing for a pitch. Wearing a suit is usually preferred as it shows a
   level of respect for a potential investor. A general rule of thumb is that in
   these circumstances you can never overdress!
5. Know your numbers – When looking for investment, small business owners
   should know their accounts inside-out and be able to discuss them with investors
   in detail. Commit key figures to memory and prepare a one-side ‘crib sheet’ to
   avoid forgetting crucial information due to nerves.
6. Have a clear strategy in place – A solid business plan that identifies the
   strategy is crucial. The plan must contain a commercial idea which will provide
   an eventual profit for investors or, as a minimum, sufficient profit to repay
   the interest and the principal on a loan.
7. Product vs. People – Investors are interested in not only the product, but
   also the marketplace, the competition, the management team, the eventual exit
   strategy and of course the entrepreneurs themselves. Business angels are
   investing in people as much as companies, as they plan to work together over the
   long term. Establishing a rapport with the potential investor is key to a
   successful partnership.
8. Care – Business angels invest their own money and they would expect to see
   business owner putting themselves on the line for their project. If an
   entrepreneur doesn’t show commitment to what he/she is doing, why should
   investors?
9. Be honest, even about tricky subjects – A question that angel investors
   frequently ask is “what are the risks in this business?”  Small business owners
   must be prepared to discuss contingency plans and potential difficulties the
   business could face. Angel investors will appreciate a realistic assessment and
   honest responses as opposed to a rose-tinted view.
10. Feedback – Regardless to the outcome of the pitch and if funding gets
    secured, receiving feedback from potential investors it’s invaluable.
    Entrepreneurs should be prepared to receive negative feedback and take it on
    board to refine their business ideas.

Finally, remember, no small business owner is alone. The support of experienced investment agencies and other professional advisors should not be understated. In addition, if small business owners prepare thoroughly and follow these best practice tips they will be well-placed to successfully attract potential investors despite the downturn.

Read more> about investing at  StartUps.co.uk 

Dragons Den pitching

Will 2011 be the year to turn your business dream into a multi-million pound reality?

After its record breaking series in 2010, Dragons’ Den is open for business once again, giving entrepreneurs from across the country the opportunity to pitch for investment and fulfil their business ambitions.

Last year saw the multi-millionaire investors offer their own money to 17 worthy entrepreneurs. One of the most memorable was Kirsty Henshaw, who, after an emotional encounter in the Den, secured £65,000 from Duncan Bannatyne and Peter Jones to expand her business. With their help, her range of ‘Freedom’ healthy frozen desserts has hit 2000 supermarkets nationwide and sales figures have hit £360,000. She predicts she’ll make £1million in sales in her first year
alone…

Dragons’ Den has created some incredible success stories over the last eight series. Brixton based Levi Roots shared his secret recipe, Reggae Reggae Sauce, with the financiers, in return for a £50,000 cash injection. Since the Den, Levi’s created a wide range of products, he says last year he sold six million bottles of his sauce alone and his business is now valued in the millions. But it’s not just about food; Imran Hakim’s I-Teddy, Neil and Laura Westwood’s Magic Whiteboard and Peter Moule’s electrical Chocbox are all businesses that have followed a path to success assisted by Dragon backing!

The rules are simple: entrepreneurs can ask for cash investment in return for equity in their business. However, they must get at least the amount they ask for or they will walk away with nothing. The Dragons want to invest in the very best that British business has to offer. They’re prepared to listen to a pitch for any type of business but they have to believe that it requires investment and will make money before they’ll back it with their own cash.

If you’re genuinely seeking investment for your business idea or invention, we’d like to hear from you. For an application form please send an e-mail to dragonsden@bbc.co.uk      Read more > Apply for Dragons Den