What else do I need to know about pitching?

This week I’ll finish off the myths about pitching.

Myth Number 4 – Don’t mention negative aspects

This is a tricky one. It is early in the relationship with the investor. You don’t know them that well and you are not too sure of your ground. In any relationship, personal or professional, once you have built up trust then the relationship is much stronger. And trust is based on just one quality – and that is honesty.

You and the investors will be business partners. They are not like bankers – give you the money and as long as you repay, then you don’t hear from them. Investors will take a keen interest in your company. You need to trust one another.

So it is a delicate decision. The relationship is still vulnerable so you don’t want to drop a massive clanger. On the other hand you want to build trust as quickly as you can. You will need good advice on this one and some finely tuned instincts.

Regardless, you must not hide key weaknesses. For example, if you don’t have much experience in export marketing then you need to tell the investors. After all, that is why you are seeking capital – to buy in resources that you don’t currently have.

Or you may need to buy out a ‘troublesome’ early investor. Put that on the table right at the outset. There may be a very sensitive issue, such as lack of resolution amongst the management team about a key strategy. If that is the case then you are probably not ready to present to an investor. You can’t afford to have division in your team. Investors don’t want to be umpires.

However, there are a lot of ‘grey’ areas in this process. You’ll need to get advice about the best time in the process to ‘out the skeletons’ in the closet. But you must out them. If you don’t own up and the investors find the problem (and they will at some point) then you will have seriously damaged the relationship.

Myth Number 5 – Don’t show you’re nervous

This is a big deal. You are allowed to be nervous. Investors understand how you are feeling. Don’t worry about low level nerves. It happens to most people. You are not expected to be the world’s best presenters. Be cool, calm and collected.

But you still need to perform. You still need to be able to put forward a powerful case for the investors to part with their money. So you can’t degenerate into a complete mess of nerves. The most successful tactic I’ve seen to combat nerves is simply to say at the beginning ‘this is a big opportunity for our company and I’m a little nervous’.

The biggest reason for nerves is lack of confidence. If you have practised your presentation until you know it backwards and you have presented to colleagues and friends many, many times, then you will feel a lot more confident. You will know your stuff, you know that others ‘get it’. That alone will make you feel better. You won’t have to worry about missing anything or getting issues confused.

Always put your best presenter up first. That may not be the CEO or chairman. You can always present it in such a way that this does not seem unusual. The first speaker has the toughest job. Once the ice is broken then the following speakers have a relatively easier job.

In closing

These are the five most common myths when it comes to presenting. Simply knowing these myths will put you in a much better position to have an investor want to hear more about your company.

And that’s what you want.

Until next time.

Gail Geronimos, is the founder of Achaeus, which helps entrepreneurs develop their businesses and she has just started a new site www.pitchingtoinvestors.com with tools and tips about how to develop killer presentations to raise capital.

To read more Gail Geronimos blogs, click here.