With a high number of our clients seeking venture capital investments, I felt it was time to disclose a list of typical mistakes that entrepreneurs make when going to pitch a venture capitalist.
Catherine Clifford put out a pretty good list in an article here, but she makes one significant omission.
Nowhere in the article is a business plan mentioned. The business plan is necessary to be able to fully understand your business, the profit that can potentially be achieved, and to gather the information necessary for the presentations that are mentioned in the article. Additionally, without a fully developed business plan, you won’t be able to provide the most accurate and intelligent answers to the venture capitalist when they ask questions (which they definitely will).
A good business plan is most important when applying for a bank loan or for other smaller investment opportunities. A venture capitalist requires a solid business plan first, and then you can apply the principles listed in the article. You must be very prepared prior to your venture capitalist meeting, and a business plan and consultation with professionals can help you do just that.