I have heard many "pitches" over the years. I've delivered several as well. When I first started pitching investing I'd thought everyone wants to see multi-year financials cascading through complex spreadsheets with all the details of cash flows, cash outlays and investment timing laid out right out the gate. Indeed when somone is going through the due diligence stage they are often looking for this kind of detailed information.
But in the beginning you need to refine the five minute financial pitch. It comes down to answering just a couple of simple questions.
- How much money are you looking for?
- How long until I get that money back?
- What is my upside (yield on investment) potential?
- How risky is this investment?
Anyone doing any kind of investment asks these four questions. It doesn't matter if you're picking a stock or looking into real estate. These are the big four questions.
Presenting information that will answer these four key financing questions should take you all of five minutes. The first three questions take 1 minute to present. The last question will take you about four minutes to present. At that point be quiet and answer questions.
In presenting about risk you'll the opposite approach you'll talk about risk reduction. Risk reduction includes such things as the experience of your managers, the quality of your board, the initial test marketing results of your product, how this is the second (third, fourth, etc.) time creating a business in this particular market, macro trends that support the need for your product, service, etc.
Pick the top five reasons to invest and lay those items out one after another.