One of the biggest challenges for restaurants and food business owners seeking growth is securing investors. So, how do you convince a total stranger to believe that your idea will sell? Well, it all starts with a great pitch and a solid business plan to back it up!
During our most recent Business Bites panel—Perfecting Your Pitch—we learned from industry experts Paul Daitz (Executive Chairman, BCMS), April Wachtel (Founder/CEO, Swig + Swallow) and Evan Madden-Peister (Consultant and Strategist, 13 Ventures) on how to secure capital to get your business up and running.
Their first piece of advice? Pitching your business is almost never like what you see on the popular TV show Shark Tank! Typically, it’s meeting in an office space or discussing your business over the phone. So, if your only reference on how to find investors is from the “sharks” on the show, we recommend you read what we learned from ICC’s very own investment-experts below!
The Environment of Pitching Has Changed
Like we said, pitching does not frequently happen in face-to-face scenarios anymore. With technology continuing to change the way that business is done, most pitch meetings occur over the phone via a call or video chat. While this does open the door for a wide range of investors from around the world, it can also hinder the quality of investors. Our investment experts recommend always trying to arrange an in-person meeting, when possible.
Don't Discount Early Investors
Early investors, like seed capitalists and angel investors, can be the success to your food business. These early investors are the ones that will help to get your business off the ground as they believe in your initial idea. They likely will not be large corporations or investment companies, but any investor, even if it’s a family member or small company, that you can secure at an early stage is important.
Know Your Audience
Investors are people too—they want to know whether the idea is useable for them, if the idea is unique to the market and others who may have invested in your company. Yes, the return on investment will be very important to the investor, but there are so many other factors that play into whether or not they will invest.
It’s also important to note that each investor will want different things. If you are bringing the same pitch deck to every investor, it probably will not work out for you in the long run. You should research your investors and know what they have invested in previously, but you do not need to know their whole life story. You must find a balance that will help you win their business in the end.
Clarity Is Key For Your Pitch Deck
There are certain points that all investors want to see covered in a stellar pitch deck including, who your company is, why this investment will matter to them in the long run and how it will ultimately benefit them. For a first meeting, it’s important that your deck hits on all of these points. You’ll want to leave 20 minutes of time for questions—that will most likely leave you with 40 minutes to present your pitch if the meeting is an hour long. A good pace to keep in mind is 3 minutes to present each slide, which will allow you to give enough substantive information without going into excessive detail.
One aspect of pitching that all of our experts agree on: clarity is key! At the end of the day, your pitch should begin and end with a presentation that looks put together and professional. If it’s difficult to follow, investors will be less likely to take away the main goal of your pitch.
Ready to get started on the business plan for your restaurant, food truck, food product or other dream culinary concept? Register for ICC’s Culinary Entrepreneurship course starting September 14th, and you’ll have a solid business plan & pitch ready in just 6 weeks! Click here to learn more.
ABOUT BUSINESS BITES
The BUSINESS BITES, brought to you by the Culinary Entrepreneurship program at ICC, is a series of workshops, discussion panels, networking events and resources designed to support entrepreneurs in the food industry.