It has been about seven weeks since we moved into our fancy digs here at the Arlington Economic Development office. In that time, I have had the pleasure to meet many entrepreneurs from all fields. More often than not the first question that they ask is, “How do I raise money?” The answer is simple: practice.
It is very rare that the first time an entrepreneur ever pitches their company they close an investor. Heck, I don’t know of anyone that raised money the VERY FIRST time they pitched. Pitching is an art form and it takes practice; that is why Alan Iverson never raised investor money.
I tell entrepreneurs that one of your main jobs when you are starting out is to talk about your company as much as possible; be open to criticism and doubt and work on your responses. Find all your “Debbie Downer” friends and relatives and “pitch” them your idea. Listen to what they are asking and file your good answers away. This preparation will be invaluable when you are in front of investors.
Once you feel that you have a good grasp of your story and pitch, schedule a “pitch” with a large group of friends and family. Make sure that this group reflects a wide range of expertise and knowledge. Treat this group like they all are Warren Buffett. That means find a business-like space like a conference room, email your attendees your executive summary and financial information beforehand, and pitch as if everyone in the room could write you a $100 million check.
When conducting these “focus groups” make sure you frame up the pitch. Let your guests know that you want them to think as investors. They should feel free to ask any question about the company/product at any time during the pitch, and there will also be a question and answer period at the end where you will ask for specific feedback on your style, the deck, etc.
These practice sessions will not only make you more comfortable pitching but they will also help prepare you for the incredible range of questions that you will be asked by investors. Not only that, it will prepare you to manage a room and to steer the conversation. Alan Iverson may have hated practice, but as an entrepreneur you have to embrace it.
Will Fuentes is founder of Lemur Retail, a former resident of TheFort.vc, and offers counseling to startup companies and entrepreneurs through the BizLaunch: Small Business, Entrepreneur and Nonprofit Assistance Program. To schedule an appointment with Will, visit the Arlington Economic Development website or call (703) 228-0826.
