One common mistake most business owners make whenever they want to use storytelling to engage investors is to rely solely on numbers. While this may work well, something else can guarantee better results, and that is storytelling.
Don’t get it twisted; numbers matter, but stories stick. Most times, investors quickly get tired of many slides from a presentation showing data and charts, some of which they may not understand. However, when it comes to storytelling, the responses are on another level.
With the right brand story, investors can connect to your vision. This will not only get them to invest in your vision but in you as well. But what exactly will you say to get them to invest in your business? How do you effectively narrate this story to connect to them?
We’ll be discussing these and more shortly. Let’s dive in.
Why is Storytelling a Big Deal?
The importance of storytelling when pitching your idea to investors cannot be overemphasized.
Have you ever found yourself in a situation where you pitched your ideas so well with impressive numbers but didn’t get a positive response from investors? The reason is not the numbers, obviously, but they didn’t connect with the investors on a personal level.
You need to understand that investors who know what they are doing don’t just invest in people’s ideas but also the brain behind the idea. By telling stories, you will not just be sharing data, but you will be sharing your vision.
To put this in perspective, there are three reasons why storytelling is a big deal:
1. It makes your idea memorable
Many investors have had many pitches before your own. When business owners often pitch their ideas, it’s a noise in the ears of most investors. They just want you to finish the noise-making so that they can move on. Many beautiful ideas have been lost through what most investors call noise-making during pitches.
However, when you use storytelling to engage investors, your idea becomes memorable in their hearts. Long after your pitch, investors can still remember what you said. This memory gets them to think about what you have said.
Engaging them with storytelling helps you bring the numbers, data, and charts to life. With this, you are sure to close that sale immediately or get a call that will seal the deal later.
2. Creates an emotional bond
Beliefs are usually connected to emotions. Storytelling creates an emotional bond, and these develop into beliefs. When investors believe in you and what you are saying, they will likely bet their money on you. Often, when they believe in you, it overshadows the cold, hard facts your competitors may have presented to them.
People don’t just invest because the numbers are good. They invest because they believe in the person or vision
3. Shows passion
Passion is something numbers and chat can not communicate. Although numbers show your brand’s potential to investors, your story shows passion. When you use storytelling to engage investors, they see your love for what you do.
Investors are likely to invest in a business when they know the person running the company is passionate about it.
Mistakes to Avoid When Using Storytelling to Engage Investors
While storytelling has proven to be a powerful way to engage investors and get them to sign that deal, it may not have the desired result if certain mistakes are not avoided.
Let’s take a look at some of the mistakes you shouldn’t make:
1. Doing too much.
When you use storytelling to engage investors, avoid too much drama. In trying to evoke emotion, many business owners have blown the whole thing because they overdid the whole storytelling thing.
Several investors have been in business for years, even before you started yours, so they can tell if you are cooking up a story. They can discern when something is not adding up.
In your storytelling, be yourself, be sincere, and don’t exaggerate because you want to evoke their emotions and get them to invest in your business or idea.
2. Lack of focus.
You may have the best brand story to tell about your business, but if your story is not well organized and tailored to what you want to achieve, you will not only be wasting your time but also the time of your investors.
You don’t just jump into storytelling because you’ve heard about how much impact it can make. You may end up telling stories that don’t relate to your business or resonate with your investors.
One secret to a good story is to make it concise and aligned with your objectives. Failure to do this will result in you rambling and losing the main message. The resultant effect of this is that investors will lose touch with the message and may tune out.
3. Leaving the audience behind.
Leaving the audience behind is a common mistake most entrepreneurs and CEOs make when telling their brand or customer stories. Some of them want to use storytelling for brands to engage investors. However, they do not know the investors.
The first step before engaging with investors is to do your research. Get to know them. But this is not the hard part. The hard part is aligning your story to fit each investor—the fewer the investors, the more manageable it is to do this.
However, if you can cross this bridge, you have completed half the journey required to sign that mega-deal.
Understanding investors’ concerns, backgrounds, interests, and more are some of the things that are necessary to align your story.
4. Not knowing how to organize the story.
You may have a good brand story to tell, but not get the best results if you do not organize it properly.
The best way to start is to introduce the story’s hero, the challenges he faced, and what he did to triumph. Giving your hero a personality that is backed with facts and data is essential. This is the concrete that seals your pitch.
Then, when you have all their attention, you can tell them what the future will be like for your business. Go ahead and end your story with a bang by telling them what they must do to be part of that glorious future you have envisioned.
Tell That Story, Seal That Deal!
When you want to use storytelling to engage investors, know that you are about to make that meeting memorable.
It will create an emotional connection and help investors see your passion. Try as much as possible not to do too much; have a focus, know your audience, and organize the flow of your story well. These are the secrets business owners use to sweep investors off their feet.
When in doubt, you can reach out to Your Write Choice to help you turn your challenges and successes into a beautiful story that will engage and convert investors. Contact Us Now!
