Written by Evelyn Mytka, Contributing Writer
Many entrepreneurs imagine pitching as a performance. A polished slide deck, confident delivery, and a big number at the end.
In reality, investors are usually trying to answer something much simpler:
Does this business make sense, and does this person understand what they’re building?
You do not need a dramatic presentation. You need clarity. The goal of a pitch is not to prove your idea is brilliant. It is to show that your business could realistically work and that you are thinking like an owner, not just an inventor.
This guide walks through how to prepare and explain your idea so someone could reasonably decide to fund it.
Before You Pitch to Anyone, Clarify These Key Points
Many early entrepreneurs rush into pitching because they want validation. Investors, however, are listening for evidence you have already tested your thinking.
You should be able to clearly answer the following:
Who specifically needs this?
Not:
- everyone
- anyone with a phone
- people who like good service
Instead:
- busy parents in suburban neighbourhoods
- small construction companies with under 10 staff
- dog owners living in apartments
- new immigrants needing affordable bookkeeping
If you cannot picture your customer clearly, an investor cannot picture your revenue.
What problem are they currently dealing with?
Describe the inconvenience, cost, or frustration they already experience. A business exists to remove friction from someone’s life or work.
How will you make money?
You do not need perfect pricing yet, but you should know:
- what you charge
- how often customers pay
- why the price makes sense to them
What have you tested?
At the idea stage, testing can be simple:
- conversations with potential customers
- a small pre-order
- a trial service for friends of friends
- a landing page with signups
You are not proving success. You are proving you are learning.
Why you?
You do not need to be the world expert. Investors simply want a reason you can execute this better than a random person with the same idea.
A Simple Pitch Structure That Works
Forget complicated terminology. A strong pitch is a clear story that answers the right questions in order.
You can structure almost any business pitch using these seven parts:
1. The situation
Describe the environment your customer lives in.
Example:
Many small contractors manage quotes, scheduling, and invoicing across multiple apps and spreadsheets.
2. The problem
Explain the friction they deal with.
Example:
This wastes hours every week and leads to missed invoices and delayed payments.
3. Your solution
State plainly what you built.
Example:
We created a single mobile tool that combines quoting, scheduling, and invoicing in one place designed for crews of under 10 employees.
4. Why people will pay
Connect your solution to real value.
Example:
Contractors recover lost billable hours and get paid faster, which offsets the monthly cost within the first job.
5. Why now
Something changed that makes the business more likely to work today:
- technology adoption increased
- regulations changed
- costs increased
- consumer behaviour shifted
This helps investors believe timing is not random.
6. Why you
Share relevant experience or insight.
Industry experience, lived experience, or early testing results all work here.
7. What you need
Be specific.
Example:
We’re seeking $40,000 to build the first production version and run a three-month pilot with 20 local companies.
Clear use of funds is often more important than the amount itself.
The Numbers You Actually Need at the Idea Stage
You are not expected to predict five-year revenue. Investors want proof you understand how the business works.
Be ready to explain:
- startup costs
- approximate price per customer
- expected number of customers early on
- cost to deliver the product or service
Avoid inflated projections. A believable small plan beats an unrealistic large one.
Example:
If we onboard 30 monthly clients at $60 each, we cover operating costs. Growth beyond that becomes profit.
Common Early Pitch Mistakes
- “Everyone is my customer”
Signals you have not tested the market yet.
- Selling the idea instead of the business
Passion matters, but investors fund revenue systems, not concepts.
- Copying a big-city model without local demand
What works elsewhere may not fit your community.
- Asking for money without a plan
“Marketing” and “hire staff” are not plans. Explain exactly what changes after investment.
- Avoiding the hard parts
Acknowledging risks builds credibility.
Questions Investors Will Probably Ask
Instead of memorizing answers, understand what they are trying to learn.
- How will you get customers? They want a repeatable approach, not just social media activity.
- What stops competitors? They want evidence customers will stick with you.
- What if this takes longer than expected? They are testing whether you planned for uncertainty.
- Why will customers choose you? They are checking for real differentiation, not general quality claims.
After the Pitch
A “no” rarely means the idea is impossible. More often it means:
- the market is unclear
- the revenue model needs work
- the timing is too early
Follow up, ask what concerns they had, and refine your approach. Many successful businesses pitched multiple times before securing support.
Final Thought
A good pitch is not a performance. It is a conversation that shows you understand your customer, your costs, and your next steps.
If you can explain your business simply and logically, you are already ahead of most first-time founders.
If you want help shaping your idea, testing assumptions, or organizing your pitch before presenting it, you can connect with a Business Link Alberta strategist for guidance and support.
