How to Write a New Business Pitch

by Brian Hill

An entrepreneur launching a new business often seeks to bring in capital from outside investors. The first step in developing a relationship with potential sources of capital is to write what is termed a "pitch" -- a brief presentation of why you believe your new business will succeed and enable investors to earn a substantial return on the capital they put in. The pitch can be verbal -- delivered in person -- or it can be submitted in written form. Either way, you must give your pitch a lot of thought as you compose it. Your pitch can either help or hurt your chances of obtaining capital.

Forms of Pitches

The term "elevator pitch" is used to describe a pitch you would deliver in person because its suggested length is about the time it would take to ride in an elevator with someone you were giving the pitch to, between 30 seconds and two minutes. You can also prepare a one-page summary of your company's potential for growth and profitability that you send to investors before meeting with them. Some entrepreneurs elect to prepare a longer two- to three-page executive summary of their business plan as the document to pitch investors with. The formats aren't mutually exclusive. You can prepare one of each to deliver according to the situation.

Goals for Your Pitch

Write your pitch with the intended purpose to generate further discussion. Your hope is that after hearing or seeing the pitch, an investor will express an interest in wanting to learn more about your company, such as asking to read your full business plan. Think of the most essential elements that he needs to know. Don’t try to present your entire business plan in your pitch. A carefully crafted pitch can save time for both you and the investor, because the investor quickly sees whether your company fits his investment parameters, such as the industry you are in and the amount of capital required.

Elements of a Good Pitch

Compose a summation of your products and services with an emphasis on the benefits they provide to customers. Outline who your target customers are. Provide an estimate of the size of the market you are entering and what is driving its growth. Clearly differentiate your company from its competitors by showing what is better and innovative about your products and services. Summarize your financial projections; mentioning just forecast revenue and profit are enough for a pitch. Introduce yourself and other key members of your team by presenting prior successes or accomplishments. Include the amount of capital you are looking for and a brief description of what it will be used for. For an elevator pitch version, pare all of that down to its most compelling essentials.

Pitfalls of Pitching

Writing a pitch is a challenge because of its brevity. You may have a difficult time distilling down your company's potential and your plans for it to the allotted time or length. Present your pitch to friends or business colleagues and let them critique it. Strive for both clarity and excitement with your pitch, but don't let it be too "sales-pitchy." The investors are looking for the information they need to qualify your company for further consideration, not a high-pressure sales job. Don't let the pitch be a substitute for preparing a thorough business plan with detailed research about your market and your competitors, and creative strategies and action plans to grow the company. Interested investors will have questions about your plan after hearing or reading your pitch. Being prepared to answer them requires that you have a solid business plan to refer to.

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