We have all watched the drama of Dragon’s Den unfold, but in reality pitching is quite different; it is doubtful you will receive a telling off and the infamous phrase ‘I’m out’ is unlikely to be uttered. In reality, the process is less straightforward. However, before attempting to part potential investors with their money, it is vital you are pitch perfect. In this post we ask the experts to give their top tips on a perfect pitch.

Work on the numbers
Let’s face it; the most important part of your pitch for potential investors is the figures. Your business plan must show you have interrogated the numbers and considered all potential expenditure – from the cost of company formation to a marketing budget. It is also important to show how you plan to fund future growth. Investors want to establish what their potential return will be over a five to seven year period and therefore it is vital you show them you understand the key financials of your business.

Show you understand your market
According to Oliver Green of Green Investments, many pitches fail because the entrepreneur focus to much on their business , failing to identify market trends, their competition or the demographic profile of their consumer base. As Green says “Investors are looking for businesses that know their market inside out.”

See the bigger picture
Allow yourself to move away from the relative benefits of your product or service; you are not selling to a potential customer, you are pitching to an investor. As Green states “Think strategically, show the investor that there is market demand, explain how your product or service meets that demand and then articulate how you plan to deliver and grow.”

Simplicity is key
Remember you are dealing with seasoned business professionals, who have potentially seen thousands of business plans just like yours. Keep it simple; identify your key objectives, define market demand and show them how you will address it. If they require more detail they will ask for it.

Show them you believe!
It is important to communicate your absolute confidence in your business. Tell them what it was about this business concept that made you sacrifice the stability of a 9-5 salary to begin the company formation process. Most investors will have no role in the day to day operation of the business they invest in; therefore it is vital they have faith in ambition drive and ability to make them money.

Honesty truly is the best policy
Investors don’t just invest in facts and figures, they invest in people. Therefore, it is vital you are honest about what you think your business can achieve so you inspire confidence and trust.

Once you have invested the time and resource demanded by the recruitment process, you need to make sure you keep them! A recent survey, investigating the performance of UK workers found that most employees would remain in their roles longer, if their bosses praised them on a regular basis. One of the most effective methods of doing this is staff appraisals.

Appraisals, when done well, provide the perfect opportunity to give feedback, motivate and ultimately, strengthen your workforce. Executed poorly and you could see you staff turnover double.

How to get them right

- Preparation
While appraisals provide an employer with the perfect opportunity to review performance, it is important that that the employee is part of the process. They should be invited to give their feedback – both negative and positive – and a definitive action plan of what should be achieved by the next appraisal should be collaboratively established.

- Feedback
It is extremely important that appraisals are approached in a positive manner, good performance should be rewarded and any criticism should be constructive. It is also important that all feedback is elaborated upon with clear examples.

- Management
It is very important to allocate a sufficient amount of uninterrupted time to appraisals. It is also vital that the process is managed by a line manager or someone who has a good working knowledge of that particular employees’ work.

Once you have made the decision to expand your workforce, chosen how you are going to manage the process and selected which applicants you would like to see, it is time to begin the most important part of recruitment; interviews. Getting the most out of an interview and subsequently hiring the right applicant, is a difficult process and – in the absence of a HR professional – one which many SME’s struggle with. In this post, we give you practical advice on what to ask.

What to Ask?
At the interview stage, preparation is key. Study each candidate’s CV and decide in advance what you want to ask them. It is essential that you find out what you need to know from each applicant before you make your decision – ultimately, this person will have a massive impact on how your business grows and therefore, it is essential that you establish what they can offer your company and –crucially – what they can’t.

According to Cathy Robinson, of HR consultants Robinson Results, the length of the interview is an integral barometer of its success. Robinson states; “In my experience, interviews should last around 50 minutes, this gives the candidate time to relax and really show the interviewer what they have to offer their business. It also shows the applicant that company they are interviewing for, is serious about finding the perfect person for that role.”

Each interview should be structured to ensure you receive the necessary information to help you make an informed choice. However, while structure is vital, it is important that the candidate feels relaxed.

“I always try and create a relaxed atmosphere,” says Robinson. “The interview process is stressful so to put candidates at ease, I begin by giving them a history of the company and its core values. This allows them time to become more comfortable in their surroundings and ensures that both the interviewee and interviewer get the most out of the process.”

Once the candidate is comfortable, it is time to begin the questions. It is essential that you receive all the information you need. Therefore, ask questions that encourage a detailed answer.
“What do you know about our company and what encouraged you to apply for the position?”
This question allows you to establish a candidates understanding of your business, establish their motivation for applying and if their understanding of the role you are offering is the same as yours.

“What are do you think are your particular strengths and weaknesses?”
This may seem like a generic question, however, it can often lead the candidate on to discussing past experiences where they have showed their strengths or weakness. The way they answer the question will also allow you to establish how they respond to criticism.

“Where do you see yourself in 10 years time?”
The idea of this question is to establish, the ambitions of the candidate and if they fit with the ambitions you have for the future of your company.

If you are to make an informed decision, it is important to also look beyond the questions. Look for features such as communication skills, their enthusiasm for your company and how their personality would fit in with the rest of your team.

After starting the company formation process, choosing who is going to work for you is the most important decision you will make.Good staff can transform struggling organisations into efficient and effective operations.

However, finding the right team can be extremely difficult. Indeed, a recent survey suggested that, despite an increase in available candidates, almost three quarters of employers have had difficulty finding the right employee over the past year.

Recruitment
The recruitment process takes time and money. However, how you choose to recruit new members of staff could make the difference between hiring the ideal candidate and failing to attract any suitable applicants.

In such a dynamic market, recruitment should become an important part of your overall growth strategy. Right from the start of the recruitment process, you should keep the details of all good candidates on file. Therefore, even if a candidate was unsuitable for one particular role, as your business expands and more roles become available, they may be more suited to alternative vacancies.

The recruitment process is not only about finding new team members; it is also part of your company’s broader communication strategy. From potential clients and customers to competitors and suppliers, the recruitment process exposes your company to a broad range of people and communicates the positive message that your company is growing to them. Therefore, it is vital that the process is executed professionally and is consistent with all other aspects of your marketing strategy.

What to do next?
The most important aspect of the recruitment process is establishing a definitive description of the vacancy; what the role entails, what experience is necessary and the sort of candidate you feel would be successful.

Now, you must choose how you are going to promote a vacancy, there are different options depending on the amount of time and resources you wish to invest. The next step is the interviewing and selection process. In tomorrow’s post we investigate how to get the most out of the interview process and how to ensure you select the ideal candidate for your organisation.

Forming your own company often requires a broad skill set. From the start of the company formation process, you are responsible for everything, from day to day operations to accounting. While this has many benefits, issues arise when you come up against an area in which you have no previous experience.

At this point, it is important you acknowledge that, though the business remains your idea, nobody has the ability to be an expert at everything. Making the decision that you and your company need support is the hard part; beginning to build up a team of various expertises is less difficult.

What is your company’s position in the market place?
Before you start the recruitment process, it is important you identify the skills and expertise your company needs to progress and grow. Once you have established this, you will have a better idea of your company’s current strengths, where there are weaknesses and how to improve them.

While it is vital that you look within your business, in such a dynamic marketplace, it is also important to look around it. Where is your company currently positioned, who are your competitors and what are the future problems? One way of doing this, is to create a growth strategy; define your product/service, your current market place and anticipate future challenges. Then consider what skills can help you meet market demand and what skills you need to ascertain.

Establish your skill set
Staff salaries are one of the most costly expenses of running a small business. Therefore, before making the commitment of becoming and employer, it is important to look at areas of your business you can mange yourself.

“One of the most important aspects of running your own business is identifying your own strengths and weaknesses” states Jim Lee from Aspect Consultancy. “Business growth comes from ongoing assessment and response to change.”

Moving forward
While it is important to employ people with different areas of experience and knowledge, it is vital that they share your vision of your business, future objectives and how they will be achieved. After all, it is your company,