4 common errors to avoid in your small business pitch

Zawya

24-04-2025

A great pitch can open doors — but a weak one can close them just as quickly. Here are four of the most common errors entrepreneurs make when pitching for funding – and what to do instead if you want your pitch to land.
Allon Raiz, CEO at Raizcorp | image supplied
1. You're leading with the deal
Too many entrepreneurs open their pitch with, 'We're asking for R3m for 20% equity,' without first making a case for the value of the opportunity.
This kind of thumb-sucked valuation – unbacked by evidence – instantly undermines credibility. Investors want to understand the market, your experience and the probability of success before they hear your ask. And when you do get to the numbers, they need to be grounded in real, researched assumptions – not fantasy maths.
Lead with substance, not speculation, and leave the deal discussion until the investors are actually interested.
2. You're selling the idea instead of your team
Ideas are everywhere. What investors want is execution and that comes down to the people behind the pitch.
Many entrepreneurs focus solely on their concept, forgetting to highlight their own experience or their team's capabilities. But investors are backing you, not just your product.
Emphasise your team's relevant expertise, why you chose them and how they'll help you navigate challenges.
Investors would rather invest in a mediocre idea that has a robust team behind it, than in a great idea that has a mediocre team. Show you've got the people to make it happen.
3. You're claiming you have no competition
Saying, 'We have no real competitors,' is one of the fastest ways to lose investor confidence. Every product or service competes – for attention, money or time.
Smart entrepreneurs show both direct and indirect competitors, and position themselves clearly using tools like a competitor map. What makes you different? Where do you sit on the price vs. quality or benefit scale?
A thoughtful competitive analysis proves you understand your market and gives investors confidence that you're ready to win in it.
4. You're not being specific
'If we just get 5% of the market…' is vague, lazy and unrealistic. It glosses over how hard it is to gain even a tiny bit of market share, especially against dominant incumbents. Instead of speculative percentages, talk specifics.
Who are your target clients? How many units will you sell, to whom and at what cost? Investors want to see clear, grounded thinking – not hopeful back-of-the-napkin maths. Precision builds trust. Generalisations break it.
Pitching isn't just about confidence – it's about preparation, clarity and strategy. Avoid these four missteps, and you won't just sound like a better entrepreneur – you'll be one.
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