It takes more than a great idea and a load of confidence to get a business funded.  It also takes a killer pitch.  A pitch is the opportunity to convince others to believe in what you have created. You are an entrepreneur, you are a risk-taker, you are a unique and inspired individual and it has led you to this point—the point when you stand up in front of a group of influential and experienced venture capitalists or angel investors and let your idea make the right impact on the right people.   

As all entrepreneurs know, a pitch is essential to the startup success of a business.  Here are 5 steps to take before you give your next big pitch:

1. Do more with less content

Remember: less is more.  Write this simple phrase on a Post-It note and stick it on your laptop as you prepare for your presentation.  It’s tempting to include every single detail of your business, but it’s important to resist.  Keep in mind the 10-20-30 rule:

1. 1. 10 slides: The number of slides you use should be both minimal and informative.
   2. 20 minutes: Be sure that you can present all of your slides in twenty minutes or less, otherwise you’ll lose the attention of those investors.
   3. 30 point font: This large font will help keep your slides simple and clean.

If you write everything you plan on saying, regardless if your pitch is memorized or not, it will appear that you are reading off of the screen.  Less. Is. More. Don’t forget it.

2. Know your numbers

Every business owner or entrepreneur should know their numbers and be prepared to present them at any given moment (especially during a question and answer session).  Numbers are what venture capitalists are most interested in and they need to be confident that you know exactly how well your business will do. Know your revenue, not just your profit, and have projections for this year and the years to follow. It doesn’t matter if you tend to be a creative soul that lacks numerical inclinations.  You absolutely must know your numbers or you and your business will instantly lose credibility.

3. Prepare for the worst and you’ll be sure to do your best

Problems can come up at any moment that can throw you off your game and potentially harm the effectiveness of your pitch. Prepare yourself as much as possible for the “wrong” situations. Cover all technological bases—back-up your presentation and then back-up your back-up.  Never trust your technology demo completely. In fact, it’s important to be ready to pitch without any technology whatsoever.

If you are presenting with a team, make sure that every member has the ability to do every part of the presentation. A well-rounded and well-prepared team will be an invaluable asset.

What are other ways to prepare for the worst?  Sit down and write down every possible thing that could go wrong and come up with a solution for each. You’re an entrepreneur—this is what you do best.  You’ll be happy you took the time to do so.

4. Learn by example

To further prepare yourself, watch episodes of ABC’s Shark Tank. Seriously. These are real people with real companies making real pitches. You can learn from their successes as well as their mistakes. When watching the show, be sure to pay attention to the questions and advice the Sharks provide. Each one of them has the expertise and experience in the world of startups.  We suggest that you write down the questions they ask presenters and prepare your own answers. It is inevitable that you will be required to answer some of those very same questions. You cannot underestimate the likelihood of a tough question coming your way. Be ready!

5. Crank up your confidence

Practice, practice, practice! This cannot be stressed enough. Once you’ve put together your perfect pitch and well-prepared PowerPoint, you need to memorize it. With your pitch perfectly mastered, you will avoid sounding nervous in front of important investors. 

Practice in front of the mirror—you will be your harshest critic. Practice in front of family. Practice in front of friends.  Practice in front of anyone who is willing to listen!

Finally, to further increase your confidence, take the time the night before your pitch to sit back, relax, and visualize. Visualize yourself giving the perfect pitch, imagine the investors nodding and smiling as you hit on your key points, picture yourself being the confident and successful entrepreneur you are.  This relaxation technique will help to soothe any last minute nerves and will be a good way to mentally review what you’ve already memorized.

With these 5 steps, you will be sure to exude the confidence in yourself and in your company that will inevitably attract the attention of venture capitalists. You will be unstoppable. Lastly, remember that investors aren’t just investing in your business, they are investing in you. Be ready for anything and be yourself!

For more tips on how to present during your pitch, be sure to read 10 Tips for an Effective Pitch.

According to research done by the U.S. Bureau of Labor Statistics, nearly 60% of new businesses shut down within the first four years of operation.  With these slim chances, it seems even more impossible to get funded. But don’t run off to the corporate world yet, entrepreneurs. Instead, check out the top four things venture capitalists look for when selecting a startup to fund:

1. A Coachable and Passionate Management Team
   
   When venture capitalists set out to invest in new projects, they first examine the brains behind it all. Whether your business is run by an individual, a partnership or small management team, the VC wants to be confident that the business is built on a solid foundation. Venture capitalists look for management teams that are goal-oriented and coachable. If the management team is not willing to learn from the VC, the collaboration needed to grow the business is difficult, if not impossible, to establish.
   
   Two important characteristics that entrepreneurs need to be successful are resiliency and emotional intelligence. Resilient entrepreneurs exhibit passion and are the driving force behind the business and its employees. Entrepreneurs who have emotional intelligence also have the intuition to know when to pack up and move on to the next, more viable idea. Great entrepreneurs understand that making mistakes is part of the job description. Venture capitalists value entrepreneurs who can learn from failure and can use it as a motivator.
    
2. Realistic Business Plans and Expectations
   
   An entrepreneur must write a clear and concise business plan that defines what product and/or service their business offers.  Although a long, detailed strategy is not always necessary, a solid written plan assures investors that the entrepreneur has calculated the potential opportunities, risks and competitors in the marketplace. Having the official business name, description, competitive analysis and goals clearly outlined in the business plan will be helpful in the long run. 
   
   More often than not, startups take twice as long to get off the ground and cost twice as much as the founders expect. Clear predictions and correct expense calculations are crucial for establishing a business’ credibility to potential VC’s. For more information on what (and what not) to include in your business plan to attract the right VC, see 5 Business Plan Mistakes that Send Investors Packing.
    
3. Ability to Problem Solve and Scalability
   
   Venture capitalists look for businesses that have long-term viability. Successful startups must be scalable in nature (in other words, they must possess the ability to grow and perform with consistent quality). Venture capitalists look for businesses that solve problems that are financially worth solving. The idea is not relevant, or financially viable, if there is not a sizeable, addressable market that cares about the problem the business is trying to solve. The business needs to provide a service that people are willing to take action on, right now.
   
   At the same time, it isn’t just the idea that is important.  In fact, the process could possibly be the most critical for a startup. Herb Sih, startup consultant and co-founder of Think Big Partners, advises that “entrepreneurs seeking to gain funding from a venture capitalist should remember not to fall in love with their idea, but instead fall in love with the idea of solving their problem.”
   
   Business success is not always measured by an end result, but how the leaders react to the obstacles along the way. The ability for an entrepreneur to rebound after failure is an indicator that he or she will be successful in the future. 
    
4. Mutually Beneficial Relationship
   
   Venture capitalists are not all the same. At the end of the day, the business in question should fit into the VC’s overall portfolio and the relationship should make sense for both parties.  But how can entrepreneurs connect with venture capitalists in the first place?  To many, they seem extremely difficult to find.
   
   There are a handful of guidelines about what not to do when approaching investors. One of the worst ways to attract venture capitalists is by unsolicited email. Many times, this demonstrates that the entrepreneur has not done the appropriate research. If you have a particular VC in mind, find a way to get connected through professional acquaintances or at networking events. Use professional social media platforms like LinkedIn to stay connected after the initial meeting and attempt to develop a professional relationship through social media.  And always keep in mind that whether the benefit is high margins, proprietary, patented technology or a different advantage, a VC ultimately cares about their return on investment - and how soon they will get it.
   
   Securing adequate funding can be stressful and time consuming. If you focus on these four tips while planting your small business seed, you will reap the rewards of a credible VC and valuable capital!

Investors see a lot of business plans.  And we mean a lot.  Therefore, most investors know when you jump on an idea and when they need to pack up their briefcases and high-tail it away from you and your idea.  Avoid these top 5 mistakes when writing your business plan and you may have a better chance of catching that investor’s eye!

1. A prediction of outrageous profits
   High profitability projections tend to indicate that the entrepreneur or business owner is underestimating costs and expenses.  By projecting outrageous profits, business owners are suggesting that profits come above growth.  Instead of focusing on profitability in your business plan, invest leftover money from costs and expenses into marketing for higher growth—and tell investors that this is what you plan to do. In addition, many “failed” business plans have incomplete or inaccurate financial projections.  Be sure to fill your business plan with a realistic cash flow projection and breakdown of starting costs.  One of the best ways to project accurate financials is by hiring a bookkeeper or accountant.  
2. Overshadowing details with “big picture” visions
   Entrepreneurs tend to be “big picture”-driven.  Because of this, business plans may become clouded with larger-than-life thinking without enough attention paid to the important small details.  Make sure that your business plan illustrates the economics of a single unit.  
3. Inflating the market
   An investor will never believe that your online harmonica company is going to bring in a market of 8 million people.  It is important to be realistic when it comes to defining your target market in the business plan that you present to investors.  It’s better to skeptical and to make low-ball assumptions than to completely inflate your market and have your plan be considered inaccurate. 
4. Lack of a competitive analysis
   To write a business plan without making note of your competition is a big mistake.  It doesn’t matter how much research you’ve done: your business idea will have a competitor (sometimes, a boatload of them!).  Be sure to highlight three to five competitors in detail in your business plan and be prepared to have three reasons that your product or service will be better than theirs.  
5. Boasting adjectives
   Game-changing.  Ground-breaking.  Market-killing.  Leave these words to your marketing and advertising departments, not to your initial business plan.  Your business idea should speak for itself—no overwhelming adjectives need to be incorporated.  Although you are selling your idea, you are not producing an advertisement.  Keep it clean, keep it simple and keep it honest.

So, you need a way to secure some capital. You've thought about turning to angel investors, but they're not for you. You've pondered about bootstrapping and digging deep into your own pockets, but that makes you nervous. Finally, you've landed on a pool of money that may be accessed with a bit of risk: your friends and family's money.

From 2007-2010 alone, 5% of US adults provided money to someone who was starting a business. It's a convenient and easy-going resource, but it can also have its downside. Here are five ways to ask friends and family for money without breaking up an important relationship:

1. Utilize small funds.
Asking your father-in-law, sister, uncle, or best friend for $10,000 may come to a shock for them. Instead, implement a strategy where you ask for smaller sums more frequently. Asking for smaller sums of money generates less pressure within the relationship. Try asking more than one person to support you so that you can ask for smaller amounts of money from a broader range of people. This could be safer than putting one relationship and a lot of money out on the line.

2. Choose a specific investment type.
Right off the bat, decide whether you are going to accept and pay back loans, have your friends and family own an equity stake or offer up a token of thanks (free access to your product or service?). Just because your friends and family are getting involved, doesn't mean they will allow you to walk all over them. They may be looking for an opportunity as well.

3. Give a light pitch.
Your friends and family probably do not want to see a 50-page business plan, but they will want to know what your business is all about! Give your friends and family a light pitch or give them a list of bullet points that covers all of your goals, strategies, target audience, and more. Keep your friends and family in the know—especially if they're lending!

4. Be professional when it comes to business.
If you're not talking about business, feel free to act goofy. But as soon as business is being discussed with your friends or family, it is time to act professionally. All documents and communications must remain business-like when friends and family are funding your dream. Make things formal. This will prove your professionalism and create trust between you and your friendly funders.

5. Manage expectations.
Your friends and family will be expecting big things from you, but they will be more patient than angel investors or venture capitalists. Keep your friends and family in the know as much as possible by sending emails and scheduling meetings.

Raising capital isn't easy...but it can be simplified when you're funded by friends and family. Use these five tips when asking for money from your loved ones and you will be well on your way to raising capital!

In a less-than-perfect economy, it's hard to get the startup financing that you may need. There are many ways to raise capital; angel investors, venture capitalists, friends and family, debt financing, and finally...bootstrapping.

Wikipedia defines bootstrapping as "a self-sustaining process that proceeds without external help." When an entrepreneur uses this tactic to raise startup capital, he is pulling himself up by his bootstraps, digging into his own personal finances, and utilizing his savings account in order to launch a business. Here are five easy steps that any entrepreneur can use in order to successfully bootstrap a new biz.

1. Make Clients Pay Up Front
The key to business survival is cash flow, not growth. Therefore, make your clients pay up front for the product or service that your business provides. Allow yourself some time to create a billing policy that actually works for you and for your business. Create a plan that includes boundaries around time, money, task force, and one that provides a key message so that clients will pay up front even in a down economy.

2. Offshore Your Tasks
If your business needs a web developer, a writer, a designer...try to find a successful freelancer and offshore some of your tasks—and we don't mean to another country. Find freelancers or part-timers in your local area who can complete tasks and provide important services for you. Offshoring will save you time, and time is money. Staying away from hiring full-time and even part-time employees until your business finds success will be very helpful in avoiding large overhead costs and payroll headaches. Use freelancers instead when bootstrapping.

3. Don't Be Afraid to Ask for Help
Successful bootstrappers ask for help when they need it most. Bootstrapping often means using small business counselors, networking groups, mentors, and other entrepreneurs as informal advisory boards. Additionally, there are many nonprofit organizations that offer free assistance with incorporating, financing, and disaster preparedness.

4. Use Social Media
Social media takes time, but it's also a marketing/advertising strategy that is absolutely free—and if you're bootstrapping, free is in your budget. Try using social media avenues such as Facebook, LinkedIn and Twitter as if your business absolutely depends on it. Once you start using it this way, you will generate more buzz and eventually more customers, without spending any money.

5. Learn to Negotiate
Successful bootstrappers must know how to negotiate —with vendors, with clients, with suppliers, with freelancers, with everyone. Negotiate as much as you can. When people know that you are bootstrapping a startup, you may be surprised as to what they will offer. The worst that can happen is that someone will say "no", so what do you have to lose?

Don't be afraid to bootstrap your business. Just use these 5 easy steps when doing so, and you will have a greater chance of success. Good luck, bootstrapper!