The Elevator Pitch
An elevator pitch is your opportunity to share and idea, company, project, dream, or opportunity with an investor who has limited time to hear about what you are working on. You must his several key points in the time you have available and you must customize your pitch to suit the audience.
The term arose because at any time you might find yourself in an elevator with an influential person. You have their undivided attention for sixty seconds while they ride to their floor. If you ever find yourself in an elevator with Donald Trump you should be prepared to share your story and capture a meeting with the influential person.
Point: The purpose of an elevator pitch is to obtain a second meeting. Your goal is to convince the audience that you understand your industry and have a valuable opportunity which the investor should be interested in.
What your “Elevator Pitch” must contain:
1. A “hook”
Open your pitch by getting the Investor’s attention with a “hook” – a statement or question that piques their interest to want to hear more.
2. About 150 – 225 words
Your pitch should go no longer than 60 seconds.
Investors expect energy and dedication from entrepreneurs.
4. A request
At the end of your pitch, you must ask for something. Do you want their business card, to schedule a full presentation, to ask for a referral?
6 questions your “Elevator Pitch” must answer:
1. What is your product or service?
Briefly describe what it is you sell. Do not go into excruciating detail.
2. Who is your market?
Briefly describe who you are selling the product or service to. What industry is it? How large of a market do they represent?
3. What is your revenue model?
More simply, how do you expect to make money?
4. Who is behind the company?
“Bet on the jockey, not the horse” is a familiar saying among Investors. Tell them a little about you and your team’s background and achievements. If you have a strong advisory board, tell them who they are and what they have accomplished?
5. Who is your competition?
Don’t have any? Think again. Briefly discuss who they are and what they have accomplished. Successful competition is an advantage – they are proof your business model and/or concept work.
6. What is your competitive advantage?
Simply being in an industry with successful competitors is not enough. You need to effectively communicate how your company is different and why you have an advantage over the competition. A better distribution channel? Key partners?
With your group you will create an “Elevator Pitch” of at least 200 words for your product. Your written format should look like this: