How to Pitch a Business
When you're starting a business, you may need a small investment to get the business off the ground. In "The Brookies Build a Business", Cara spends $36 on materials to make the first batch of bracelets to sell. Whether a loan from a parent that you'll pay back with your profits or an investment for a portion of your company, you'll likely need to pitch your business first.
A pitch is your time to explain to potential investors why your business will rock it. More so, you're telling them why they should invest in YOU and your vision.
Here's what a pitch should include:
What problem are you solving? Talk about the opportunity in the market and what solution you are offering.
Think of the market as a Home-Alone-Kevin-McCalister-large-cheese-pizza-just-for-you. Can you take a slice out of that pizza pie with your business? A sliver? Your sales are your piece of the pie, or your market share. You want to take a big slice of that pie. What if the market is getting bigger? Maybe that the large cheese pizza might be more like an extra large cheese pizza next year. If so, your business can grow as the market grows, too.
Who are your competitors? Talk about the full competitive landscape and where your business will fit. It's absolutely okay to have competition, as long as you have...
How are you different? How are you approaching the problem in a way that the competition isn't?
How will your business make money? Think about your potential customers and the value proposition that you're offering. In "The Brookies Build a Business", Cara and her friends are making money by selling unique bracelets to classmates. Those sales are their revenues. Before they started selling, they thought long and hard about their target customer and how to price the bracelets to run a strong, profitable business.
The Brookies are selling bracelets to friends at school for now, but maybe there are ways to grow that business and find new revenue streams. Perhaps they'll start selling bracelets online. Maybe they'll make custom bracelets for sports teams at schools in the neighborhood. Maybe they'll sell the bracelets to local boutiques, who will then re-sell to other customers. Or maybe they'll expand their collection to include new items outside of bracelets.
Business models vary. If you're tutoring a subject you're acing, you're making money by offering a service. If you're running an online 'zine, you might make money through running advertisements or charging a subscription fee. Maybe your lemonade stand is doing so well that you start franchises in neighboring towns.
Your investors will be very curious about your business model, and so make sure to think through each component for your pitch.
How will your business get new customers? Here's your opportunity to talk marketing strategy. Word of mouth was a big for the Brookies. They even made an announcement over the school loudspeaker as another means of marketing. Other examples of marketing include emailing, posting flyers, making a video ad, or getting mentions in the press.
Marketing is one of the best ways to demonstrate creativity in your business.
Revenue - Sales.
Costs - What you spend on making the product?
Profits - What