I have spent the later half of September writing on how to raise capital for your business. I wrote about the timing of a pitch, ten rules to follow when making a pitch, and how to get an opportunity to pitch your idea. I would like to now give you some resources that will aid in putting together the specific content of a good investment pitch.

Remember each pitch should be tailored to your specific situation and to the individual investor. The length of time you have to make your pitch will vary from 30 seconds to 20 minutes. If this is a formal meeting to pitch your business then 20 minutes is a good length to aim for. Nonetheless, a rule of thumb is to be prepared for anything and know your stuff well enough to adapt to the situation at hand.

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When will the right time come for you to pitch your big idea to that big investor? If you are waiting for it to just happen, out of a random or chance meeting, then go and buy a lottery ticket. If you think that is the only way you will get a shot, you are mistaken.

Think about it from an investor’s point of view. They have a responsibility to invest the money that they are entrusted with wisely. Did you catch that? They have a responsibility to invest; it is their job to give money to people or organizations with great ideas. This bodes well for you getting an opportunity to pitch your idea.

All you have to do is get through the filters. Investors do not have time to entertain every single person with a crazy idea who wants to ask them for money. That is where filters come into play. Investors setup a series of filters to weed out poor investments from those that show greater potential. Most investors use a combination of filters; the bigger the investor the more filters you will run into. A word to the wise, do not try to undermine the filters; they are in place for good reasons. If you try to skip through, you will not get through. Instead work your way through the filters; remember the investor has a responsibility to invest their money.

Here is a list of some of the types of filters you may run into:

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In my post When to Make a Pitch to Investors I touched on the fact that if you are going to make it big you can’t be the board chair, CEO, CFO, COO, designer, marketer, administrative assistant, and the janitor all by yourself.

This isn’t a case of “stick to what you are good at”. In fact, as an innovator and designer, I would be the first to suggest you to try new things. Nonetheless, as you build your new business, new product, or new innovation I would encourage you to take five minutes to check your status.

Where are you now? Where do you want to be? And should you give up control of one or more aspects of your business to get there?

So you need to raise capital to take your innovation to the next level. Few people like to ask for money. It can be uncomfortable and can sour relationships. Don’t worry I am not going to pontificate on the dangers of money. However, I would like to give you ten rules that will assist you in making your pitch to potential investors.

Rule One: Ask for an Investment
Let’s start with the most important thing, you are not asking for money, you are asking for an investment; this means that they provide you with money now in return for something of greater value in the future.

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How do you know when it is time to make a pitch to potential investors? It can be difficult to give up a portion of profits or even worse control over something we have worked so hard for. I will give it to you strait, if you can get over yourself, now may just be the time to make your big pitch to a new investor.

Let’s face the facts…

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I was reading a very politically-correct article the other day in which the author suggested, “let’s focus on solutions, not problems.” It suddenly struck me that this is part of the reason for Canada’s lack of achievement in innovation. We are afraid to focus on problems. In our culture, the word “problem” conjures up emotions of fear, anxiety, and panic. For myself, on the other hand, there is nothing more exciting than facing a difficult problem. Why? Problems point us in the direction of hidden opportunities. They are the “X” that marks the spot where the hidden “treasures” of your business are buried.

For those companies that are willing to focus on these problems and take the time to clearly define the issues, innovative solutions will follow. These are the “buried treasures”, the hidden business opportunities that are available for companies that are willing to invest the time and effort to discover them. These innovations will help your company improve its market share and increase its margins. So don’t shy away from problems and ignore them out of fear or anxiety.

Written by Guest Blogger: Tim Burke, P. Eng., President, Quark Engineering and Development Inc.