Business investment can be crucial in the restaurant industry. Having the resources to create is a crucial step in making your business a success and, for most restaurant owners, investment is what will enable this. Given the saturated nature of the restaurant market, the support of a financial backer can give you the means to get ahead. Pitching for investment can seem intimidating but it’s not rocket science.
- Go prepared
Many business owners approach an investment pitch fairly casually, assuming that they already know enough about the business to be able to do the pitch without preparing. This is a big mistake – the limited time you have means that you need to deliver a concise and powerful pitch quickly and the only way to do this is to rehearse what you’re going to say.
- Be ready to back up your claims
If you’re a niche restaurant but you believe your cuisine is about to be huge then be prepared to be asked why. You need to back up any claims you make about potential success with proof – numbers, data, cashflow, other industry examples. Make sure you have an in-depth business plan to go with your pitch and consider an investor deck – a short, information-rich series of statements that succinctly describe the business and its prospects.
- Identify your problem, solution and USP
What problem does your business solve in the market? What exactly is your solution to that problem? And what makes your business unique? Investors will rarely want to put money into a business that doesn’t have a purpose or one which is entering a market where there are already numerous other competitors with exactly the same proposition.
- Know your market
Demonstrating knowledge of your market – research, surveys, data that you have extracted – gives investors confidence. It also provides you with the basis of your pitch as if you understand your target market then you can talk about why your restaurant will succeed.
- Tell a story
A pitch shouldn’t exclusively be about facts and figures, although these are important. Investors often want to feel something when they support a business and drawing them into your story will make them more likely to want to be on board. Engage your audience, explain your journey and get them to see the situation from your side.
Successful investor pitching is all about being credible, engaging and a unique prospect. Meet these criteria and your pitch should be a resounding success.