Learning to pitch

Watching BBC TV's Dragons' Den you'd be forgiven for thinking that any time you have to stand in front of a group of investors, the experience is going to leave you stressed out and humiliated. But after joining a group of entrepreneurs for a day's instruction on how to access that all important cash, I've come to realise that more often than not the action in the Den doesn't reflect the real world.

Last Wednesday, I spent an enjoyable day with around 30 business owners learning how to pitch for finance. Organised by Angels Den, the network which connects those looking for and those offering company funding, the day focused on practical guidance rather than woolly theory.

That isn't to say that part of the day wasn't a scary experience for many of those who took part! During a pitching practice session, several entrepreneurs were visibly shaking as they presented their business to the rest of us. But remember, practice makes perfect!

One of the most enlightening parts of the event was the speech given by Max Wright. A successful entrepreneur himself (and former manager of 70s glam rock band Mud!), Wright is now a business angel and guess what, he's not a 'dragon', he's a really nice bloke!

Dragons' Den has done a lot to encourage entrepreneurship in the UK but it has also helped to paint a rather skewed picture of the process of pitching. Sure, it's tough and yes, it's scary but ultimately, investors in the real world aren't out to show you up. They're looking for good companies to back and yours could help them fulfil that aim.

I've met a couple of the dragons and their off air selves are certainly different to their on air unapproachable, 'don't mess with me' personas. (see our exclusive video interview with Deborah Meaden for an example). Whatever the BBC producers like to say about Dragons' Den being about business, it's ultimately a TV programme, or as Angels Den CEO Bill Morrow describes it, a "pantomine" that's all about ratings.

One piece of fresh thinking that came out of the pitching school I attended was the fact that investors are out to have fun. Yes, you read the correctly!

Of course it's your business and you want to make sure it's a success but very often entrepreneurs can think too seriously about the process. "Having great ideas is important," Wright said during his speech, "but so is having fun. I personally want to be involved with every venture I invest in so it needs to be a fun business."

Wright also revealed that first impressions do indeed count. "Within 30 seconds of meeting someone, I very quickly make a judgement and ask myself 'do I like this person?'," he revealed. Definitely worth dusting off that smart suit if you get a chance to meet Max then!

Wright then presented a very useful list of questions you should make sure you can answer before pitching to an investor. Fortunately I wrote them down:

Have you done your research? Do you know you've got a viable business? If you can't convince yourself, you're not going to be able to convince anyone else.

What do you want the money for? If it's for your own wages or a Ferrari, you'll leave empty handed!

Have you invested some of your own money? If you have, it demonstrates commitment.

If your business is not yet making a profit, how will you support yourself? You need to eat remember!

Be realistic about what you want and why. It has to make sense.

Are you asking for enough? If you ask for £50,000 and go back to the investor six months later realising you need another £50,000, it's very likely to put the angel off.

Do you know what the angel is looking for? Do they want to be directly involved with your business or will they adopt a more hands off approach?

Do you have an exit strategy? Are you confident you know when the angel will get their money back?