According to most business persons, raising funds remains the most challenging aspect of starting a business.
If you are new to entrepreneurship, you may have only a few or no investors familiar with you. Therefore, you’ll need to persuade an investor to believe in you and provide the necessary capital support, even though you have a vision of your startup becoming the most successful company.
As a result, the majority of startup founders enter startup pitch competitions.
What is a pitch competition?
A pitch competition is an event in which individuals showcase their business idea to a panel with hopes of earning a prize or funding.
Each pitch competition has its own set of restrictions and guidelines, but regardless, a CEO competes against many other business people who have their business plans.
The pitch competition is the 1st place to get your foot in the door of the venture capital and angel investment worlds even though you don’t qualify. You’d want to express the right image.
Also, read about: How to Crowdfund Your Startup
Your pitch should highlight the essential features of your company’s strategy, goods, and services you offer, significant financial predictions, alongside capital requirements. It should stand alone as a graphical presentation, but it will essentially seek to tell your company’s story.
What pitch competitions should I join?
Pitch Competitions are an excellent opportunity to have your foot in the door of the startup world. If you lack people to work together, you can consider trying student teams as they have proved effective over the years.
Whether you win or lose the contest, you’ll come out knowing if your concept has validity in a non-threatening environment and get a sense of what it will cost to get people to support your business idea.
Furthermore, you’d want to be successful as the financial incentives are a terrific way to incorporate necessary cash into your fledgling company.
Besides, receiving knowledge, ideas, and connections from a team of experts is significant compared to your revenue.
How is the competition judged?
- The distinction between “smart” and “creative” concepts.
These two may seem counterparts; however, each has a different effect. Both ideas can be great, but “smart” seems more realistic and naturalized at the presentation stage, especially among younger businessmen.
- There lies a distinction among ideas presented with a narrative and those scooped out of nothing.
It’s evident when a story is made up for publicity and persuasion only and when it can be attributed to the facts.
For instance, most guest judges use interrogations to ask the candidate what he can learn from his study. An answer that incorporates genuine discussions with humans as consumers can be fact-proof.
- The most crucial factor in determining a product’s identity is credibility.
Another element is speech validity: Would the individual’s authentic voice with the initial concept communicate much during pitching?
Facial interaction with the creator of an initiative and experiencing their genuine speech is a pleasant aspect of a startup competition
A pitch competition allows businesses to get visibility in local communities, rehearse and enhance their proposals, and network with prospective investors. A straightforward method ensures all contestants, judges, and panelists have a broad consensus on administering the contest.
To make this idea come to life:
- Find a genuine customer narrative
- Define your marketing strategy
- Ensure your pitch is clear to everybody. Describe and, where applicable, demonstrate why you are the ideal person to lead this enterprise.
- Showcase your team’s achievements and influence since the start of the business.
- Challenge the competition boldly
Ensure your pitch deck has the following: Information about your company’s founders, the issue you’re attempting to fix, your service or product which solves that issue, momentum, the modern economy, and your competition, as well as information about your value proposition and how any successful expenditure will be used, and the contact information on the closing sheet.
What is the cost of joining a startup pitch competition?
There are many pitching competitions available today; you don’t have to pay to join one. Alternatively, you could look for another free match every day and never run out of alternatives.
While many of these contests are free to access, you must also consider the time and opportunity cost.
However, applying to a pitch competition takes time and effort, and it requires extra if you’re selected, and you must prepare and perform a presentation. As a result, the “free” pitch competitions are not free entirely; alternatively, you can consider straightforward ones like the SXSW pitch to save on energy and time.
If your firm is not producing income, displaying many consumers speaks volumes about its viability. What is your current user count? What is their response? What are your customer retention rates? How quickly is your consumer base growing per week?
Your squad could also help you improve your pitching. In past ventures, what criteria have your founder teams and consultants accomplished? How much money have they made, or how many withdrawals have they made previously? This can be a good predictor of the company’s future performance and success.
Investors seek aspiring entrepreneurs and industry experts with a proven record of solid organizational outcomes in the firm or previous undertakings when considering investing in a business. Several investors look at your industry experience and profile
Does an entrepreneur have to have “star power” to compete for investment dollars in a pitch competition?
If you’d like to seek funding for a new company, you should understand how to present your business idea to a potential investor.
Generate your pitch deck, illustrate local business idea perspective, assert feasible estimates, hold startup expenses down, and tell that you can fabricate on a micro-level initially or that you can execute your services to a limited number of dedicated users before attempting to obtain financial resources for a big organization.
Among the most significant obstacles to a startup’s existence is competition. And if you’re starting a business, the competitiveness is even greater.
A corporate environment marked with creativity, teamwork, and contingency like Silicon Valley is necessary for a critical motivational framework focusing on digital businesses.
Since there’s no risk involved, the market competition keeps companies on their toes. Both B2B and B2C businesses constantly experience pressure from big startups around the globe.
Nonetheless, a competitive environment is essential to a business model because it drives entrepreneurs to act faster, recruit, execute decisions quickly, and overall win their markets within a short time.
How do you know the audience and what they care about in a pitch competition?
Your target audience has a direct impact on how you should craft your message. You must know your audience while presenting your startup or creating promotional materials!
It’s challenging to stand before an audience and guest judges, but it is more challenging if your performance is disrupted even before it starts.
You can personalize your message to connect to your audiences, expect their queries, and offer an innovative approach if you recognize who you’re talking to.
Inspect the contest’s page and see who it will appeal to, then request the host for more details on how many and who would be in the audience. Finally, check for examples from previous winners and speakers.
Before entering a startup pitch contest, prepare appropriately, know the KPI measurements, recognize competitors and engage the audience to save time and humiliation.
Since every business faces competition, understanding your competitors and what they provide can help you improve your goods, services, and branding. It will moreover enable you to impose reasonable rates and respond to competitor promotional activities through your strategies.
You can utilize this information to develop business plans that capitalize on your competitors’ flaws while also improving your company’s success.
You could also examine potential concerns provided by other tech startups as well as existing competitors. Invest the opportunity to analyze competition towards promoting your company’s success.
Are startup pitch competitions worth it?
A startup competition is worthwhile; hone your pitch to make it flow naturally so that you can gain exposure to potential investors, broaden your horizons, and, if all goes well, receive a cash prize for your business.
Preparations for the competition:
- Revise and optimize the pitch deck.
- Get somebody from outside your firm to look through your pitch.
- Focus on making the modifications that were recommended to you.
- Improvise presenting your pitch till it becomes second nature to you, then keep improving overall performance.
- Film yourself and review it again with an advisor who can comment on your nonverbal cues, choice of words, and other aspects of your presentation.
- Prepare answers to any query that may be posed. Keep track of yourself and set aside some time before the competition. Rise to the occasion as the grand prize winner!
Generally, there is no “best” competition. Instead, it would help if you went for one that suits you best: you have the best chance of winning, which indicates you are ideal for the contest. For instance, if you are a weak competitor, join a lesser competition where your competitors are at the same level or worse than you.
If you want to learn how to skip the pitch deck and build a startup on your own terms, then take a look at the free 30-minute audio course here: https://theverticalmethod.com