How to “AIDA” your investment pitch
The process of attracting interest from investors shares a lot of synergies with the advertising industry. Casting my mind back to college and those lengthy lectures on advertising theory, an acronym springs to mind. The AIDA principle.
AIDA stands for: Attract - Interest - Desire - Action
Attract
Attract the attention of your audience. In the advertising sense this is the main attention grabbing headline or hero shot which draws the eye and encourages the audience to want to find out more. In pitching for investment this relates to the initial description of the concept.
Interest
Stimulate the interest of your audience. When creating an advert you would stimulate interest by providing some information about the product or service which the audience will be able to associate with. Providing a description of your target market should have the effect of stimulating interest from potential investors.
Desire
Promote desire in your audience. Your advert has already garnered some interest in the product or service it is now time to promote desire. In the advert you may well promote a lifestyle which is appealing to the target market, or offer a financial incentive. Promoting desire in potential investors can be achieved by having a clear revenue model and understanding of the scope of the market and your products huge growth potential.
Action
Encourage action. An advert should always encourage action from the audience, this is often achieved by the use of a time sensitive offer or limited availability, or merely just asking that the audience take action. When it comes to encouraging action from potential investors, displaying passion and enthusiasm in your venture and displaying the clear strengths of your team will make you very appealing. Potential investors won’t want to lose out to another investor which will be a very strong motivator for them to get in touch.
Summary
A lot can be learned by applying advertising theory to the process of pitching for investment. If your Elevator Pitch takes the investor through the journey of attraction, interest, desire and action you stand a very good chance of them contacting you to find out more.
