Raizor's Edge

Who would be your first ten staff hires? By asking this question, investors want to establish if you have a thorough understanding of the operational requirements of the various functions in your growing business and the respective roles that must be filled. Listen to episode 44 of The Successful Pitch series to hear Allon Raiz’ advice on how to answer this question during your pitch.

Attracting and retaining the right calibre of staff is a fundamental component of scaling a business. It’s vital to invest in the right people by hiring top talent with expandable and diverse skill sets. A growing business also needs a staff complement to match its increasing operational demands. Be prepared to answer the question of how you will attract and maintain skills as your business expand...

An early quandary that most startup entrepreneurs have to face is getting the size of their business premises right and, if they’re renting the space, the duration of the lease. If you’re strapped for cash, you obviously don’t want to be paying for unnecessary space. At the same, though, when you start growing you may have to find new premises which may mean incurring penalties to terminate your c...

No company is immune to business risks. They impact your business in several ways and can pose a serious threat to the very existence of your organisation. It’s imperative to address these risks during your pitch and indicate to investors how you plan to mitigate against and minimise them. Investors want to see that you have a thorough understanding of the main risks that have the potential to aff...

When starting your business, it’s advisable to raise enough capital to sustain you throughout the growth phase . . . But, in some cases, it’s better to start with less capital. That’s because the growth phase will be a learning curve during which making mistakes will be unavoidable – and minimising the mistakes and their associated costs will be important. Your investors will want to see if you ca...

In business, a return on investment is a by-product of margin profitability. Investors want a business with the potential to achieve increased profitability, a business that can identify areas in their operations that can be leveraged to achieve bigger margins. During your pitch, you need to be prepared to answer questions on how you plan to increase your margins and provide practical examples to...

As an entrepreneur, you should expect investors to pose the following question during your pitch: “What do you need the money for, and how are you going to spend it?” This is a crucial question, and it needs a well-articulated response that clearly outlines your projected expenditure over a specific time frame. Investors always want to minimise risk; they are looking for an entrepreneur who displa...

Your financial statements provide detailed information regarding the financial health of your business. Too many entrepreneurs fail to produce accurate and timely financial statements, which has a negative impact on the growth of their businesses. As an entrepreneur, you need to consider the quality aspect of your financials: are they complete, accurate, and logical? These will not just appear; th...

Investors always strive to get the highest possible return on their investment; they want to gauge if their investment will be worthwhile, how lucrative your business is and if it has growth potential. The financial performance of your business will be scrutinised in terms of capital requirements and profitability. You should expect the following question: “When are we going to be paid back?” You...

Every single business known to man has competition and to deny this is a fatal mistake. The question investors want you to answer is “What is your plan for dealing with competitors?” Investor’s want to know that you have thought this answer through in a strategic, realistic way. Join Allon in episode 37 of The Successful Pitch for some dos and don’ts when giving this answer. Listen Now >

Your break-even threshold is a pivotal point in your pitch. Surprisingly, investors don’t want this number given to them in terms of revenue, they would much prefer this figure in terms of units sold. Listen to Allon explain why in episode 36 of The Successful Pitch. Listen Now >

As much as investors want their return on investment, they also want this return to transpire in a certain timeline – and this timeline varies from investor to investor. In this episode of The Successful Pitch, Allon prepares you for the question, “Who will buy my equity when I am ready to exit?” Join him for episode 35 as he walks you through laying out potential future buyers in a well-construct...

Another question to be prepared for is the inevitable, “What’s in it for me?” Your investor isn’t in the investing game to give money away freely. You are one of three or four potential investments. This month. Join Allon in episode 34 of The Successful Pitch to gain some insight into balancing why the return-on-investment opportunities far outweigh the potential risks – and how to prove you can b...

In episode 7 of 20 Lessons Over 20 Years, Allon Raiz discusses how too many entrepreneurs hand over the responsibility of their finances to an external accountant and, in effect, abdicate their responsibility when it comes to their business numbers. It is a trap that he, too, fell into when starting his entrepreneurial journey – right up until he ran out of money! The bank wouldn’t extend his over...

Join Allon Raiz in episode 33 of The Successful Pitch. Over the next 20 episodes, Allon will take you through some common questions investors ask and what they are looking for in your answers. This week’s question is “who else is doing something similar to you in the world?” Tune in to find out why it’s important to answer this on a global scale and which direction an investor wants you to take wh...

Pitching is a serious business, and you definitely want to put your best foot forward. But it’s important to remember to be a human – smile, make an appropriate joke, show how approachable you are. If you are enjoying yourself, your investor will too. It’s not all fun and games though. Listen to Allon in episode 32 of The Successful Pitch to learn how to balance the serious side of pitching with a...

The highest pressure-point of a pitch is the last sentence. Should you end on a comment, a statement or an ask? If your investor is left thinking there is more to the pitch, you know you’ve ended on a weak, fluffy note. Listen to Allon in episode 31 of The Successful Pitch to find out how to go out with a strong ending. Listen Now >

Investors come in all shapes and sizes but one thing they all have in common is that they are impatient. Start your pitch off with a bang to avoid losing their interest. Help them frame the rest of your pitch around a schema or model. Listen to Allon explain all the benefits of presenting the important stuff upfront in episode 30 of The Successful Pitch. Listen Now >

In the startup years, the adage “the customer is king” remains fresh and deliberate in your mind. They are, of course, the king (or queen) and you are here to serve. This is the ideal narrative but every business at some point in the journey attracts a client who is abusive. It’s an important experience and a rite of passage, and how you manage this first abusive relationship will determine your b...

Pitches should be taken seriously and preparing for a pitch is vital. Because most investors ask a handful of similar questions, it’s easy to anticipate what might be asked and overprepare your answers. The mistake made here is jumping in to answer before the investor has finished asking and sounding overly rehearsed. Join Allon Raiz in episode 29 of The Successful Pitch where he explains why a lo...

The worst words you could ever use in a pitch are words that make you sound uncertain – especially during the Q&A section. They immediately convey to your investor that you are unsure and lack confidence in the knowledge surrounding your business, and the future of it. So, what do you do when you really don’t know the answer? Join Allon in episode 28 of The Successful Pitch to find out how to fiel...

Good investors are trained to listen and listen well. Any contradictions between your pitch deck and your voiceover have the potential to blow you out of the water. Contradictions invite hard-to-answer questions, come across as mistakes and make the investor question the validity of your entire pitch. Listen to Allon Raiz in episode 27 of The Successful Pitch where he provides two ways to mitigate...

No two audiences are the same, but they all have the same question: “What’s in it for me?” And the answer to this question will be different for each person. For this reason, it’s important to tweak your pitch to your particular audience whenever you get up in front of someone different. Join Allon Raiz for episode 26 of his Raizor’s Edge podcast series, The Successful Pitch to understand what you...

The typical pattern in many small businesses is that they start with a monthly revenue line that is relatively flat and a similar-looking profit line (or rather a lack-of-profit line), along with a cash-flow line that points 45 degrees downhill. As the business starts gaining a little traction and more deals come in, at some point, there will be an exponential increase in deal sizes. Often, the in...

As an entrepreneur, you tend to become so embedded in your business that you forget that the nuances you know offhand are not as obvious or understandable to the outside world. It’s important to keep this in mind when pitching. Join Allon Raiz for episode 25 of The Successful Pitch where he explains how to mitigate this problem by using a common reference point or schema.