How Pitching Potential Investors Is Like Selling a Used Car

I have some experience with pitching business ideas to venture capitalists and angel investors as well as buying and selling used cars. In this post I will give a few examples of how these activities are similar along with some tips.

Skeptical Audience: A used car buyer is not likely to believe everything you say about your car and its condition is accurate without some proof or documentation to back up your claims. The same is true with a potential business investor. With your car you would want to show your buyer receipts of maintenance and repairs, oil change log, paper work on the car's warranty, etc. In the case of an investor pitch, be sure to include documentation about your business via market data and trends, typical user case study, and information about your competitors. 

When dealing with a skeptical audience, gaining their trust is perhaps the most important issue. Invite them to get in the car, be prepared to answer any and all questions and do so thoroughly, control your nerves, and teach them something new about the subject at hand.

Show me the Carfax: This is a phrase that every used car buyer should/will say to you. Among other things, this is a report of accidents that the car has been involved in. Think of any previous, failed ventures as car accidents that have not totaled your entrepreneurial spirit. Learn from previous mistakes. Be straightforward with investors about your credentials and history. They will be delighted at the fact that you aren't some 18 year old trying to sell them a cure for cancer.

Clean your car!: You would not think of trying to sell a car that is covered in mud and full of fast-food wrappers. A fresh car wash and interior vacuuming helps show your buyer that you take care of your vehicle. Dress nice and have your investor pitch well organized. Visual aesthetics really do go a long way. And finally practice, practice, practice your pitch.

p.s. The car pictured above is my 2000 BMW 323i with 113K miles and I'm thinking of selling it soon. If you are interested, leave me a comment or send me an email {SOLD}.