Techniques To Nail The Marketing Aspect Of Your Investor Pitch
There’s a lot that goes into a well-crafted investor pitch.
Some key components include discussing the pain points you’re solving, your financial projections and, of course, the product itself. But let’s not overlook another critical aspect — the marketing strategy. How are you going to capture your market share? Who’s your target audience? How will you reach them? An investor pitch should be robust enough that it covers all of the major angles. But one element that I find that many entrepreneurs overlook is the marketing side of things. In my experience, I have identified the following to be the essential marketing elements of a funding pitch, along with effective ways to strategize for addressing investors’ concerns.
Perform Keyword Research
Keyword research is a powerful tool for investors. It can be leveraged to show quantifiable data on market size, search breadth, topic trends, seasonal trends and more. For instance, you might explain product demand by highlighting the average monthly searches for a certain targeted keyword phrase. In turn, you can provide investors with an objective snapshot of the marketing forecast and identify key opportunities that can help your brand eclipse competitors.
Here’s an example.
Let’s say you’re going into the ride-sharing industry in Germany and need to make projections. On your slide deck, you might start with these four core terms:
• Ride sharing in Germany
• Best ride-sharing app
• Car sharing Germany
• Rideshare Germany
Do a little forecasting magic, and you can craft an intent-driven audience that is looking for this service now! This gives investors a tangible idea of what current demand looks like, which is huge for getting them to buy in.
Know Your Target Audience
Having a comprehensive understanding of your audience is mandatory. You need to know precisely who you’re trying to reach and how you can best reach them. Here are some questions you should ask yourself:
• What are your buyer personas?
• What are their pain points?
• What are their objections?
• How do you appeal to them?
Illustrating buyer persona mapping and prospective audience sizes would work well for your slide deck here. Visually breaking down your various personas gives investors a clear idea of exactly who it is you’re trying to reach with your marketing. Addressing audience sizes fills them in on the type of outreach efforts that would be necessary. For instance, you might limit your outreach to the three largest cities in Germany — Berlin, Hamburg and Munich.
Show That You Care About the Money You’ll Be Spending
The last thing investors want to be involved with is a brand that’s frivolous with their spending. It’s all about making every dollar count through proper planning. Be thorough when discussing the channels you’ plan to utilize and the specific strategies involved. What percentage of marketing spend will be devoted to SEO? To paid advertising? To content marketing? Here, you might include a slide with a pie chart that breaks down this percentage visually. I also recommend incorporating a slide deck on the marketing funnel/user journey so investors will know precisely what your game plan is, step-by-step. This should help investors better understand your logic and see the big picture.
Adaptability is a fundamental trait of the modern marketer. With new marketing trends constantly emerging and others dying off, you need to have your finger on the pulse of what’s happening and be capable of striking while the iron is hot. You must also be comfortable adapting to the different stages of marketing growth. As your brand expands, so must your marketing. A slide covering the marketing lifecycle should work well to acknowledge your thought into the need for adaptability. Include details on key growth focus areas over time and how you anticipate your marketing strategy will evolve.
Growth is the primary objective of most businesses. And you can bet that investors have the same aim. It’s critical to show them that you’re not scared of scaling your business. More importantly, you need to show that you’ve done your homework and have a viable game plan in place to do so effectively. Although you’re probably not in the position to plan this execution right now, you should have a basic idea of how you’ll go about it and that you're capable of assembling the right people to make it happen.
Touch on your team's plan and scalability should include answers to the following.
• How do you plan on growing your team?
• How much larger do you anticipate your team becoming?
• What types of experts or specialists will you hire as your company grows?
Considering that 70% of small- and medium-size business (SMBs) spend less than $500 a month on marketing, according to a study by BrightLocal, it's doubtful that you’re going to launch a campaign at $150,000 per month and capture 50% of the market share. Having ambition is great, but remain realistic about your expectations — it becomes a problem when ambition turns into delusion.
As you're developing your pitch, reach out to marketing friends and associates who have been there and done that. The more input and expertise you get from others, the better shape you’ll be in and the more resources you’ll have at your disposal. And here’s something that I can’t stress enough: Don’t be too shy to ask for things! I’ve found that most people are more than willing to help and many are flattered that you’re asking for their advice.
Here’s one last, little piece of advice. Stick to your guns! Second-guessing yourself is the worst, and it is likely to be a red flag to investors that you lack confidence. Remember that if you’ve taken the time do your research and you can validate it, roll with it! When it’s all said and done, investors need to know that you’ve got an airtight marketing plan that’s capable of scaling along with the growth of your brand. The techniques listed here should help you address investors’ key concerns and get them to see your vision.
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