30 second elevator pitch
The elevator pitch is the most important 30 seconds you will ever have to get your point across. The challenge for someone delivering such a pitch is communicating a lot of information within a short period of time in a cogent, logical and most importantly, compelling way. Below are a few hints and suggestions to keep in mind when developing an effective and compelling elevator pitch.
1) Create a short, one line description, or tag-line, of what your start-up does and how it does it.
This one line should not exceed more than 10-12 words if possible. This is your tag-line: short, crisp and catchy. Its purpose is not to fully encompass every nuance of your entire value proposition, but rather to tell the listener just enough to allow them to determine whether or not they want to hear more. Especially in a social/networking situation, you want to have a short tag-line to optimize your efficiency. If your listener is interested, they will ask you further questions. If they do not ask you further questions, then they are either uninterested or do not understand the model - in which case you should disengage and focus on other potential investors. EVERY good start-up can be encapsulated into one short such line. Please use "meta" terms, ie. names of other well-known and successful start-ups who perform one or more functions like your start-up, and mix and match to achieve the desired meaning. For example, instead of saying: "We address a pronounced and huge business/industry need in liquidating lumber and lumber products over a web-based declining bid-model that aggregates buyers and sellers from which we reap transaction fees." Say "We're a Priceline for lumber." Though, Priceline may not exactly be the best example around anymore. . .
2) Do not waste your time justifying your space.
There is a saying that if you have to explain how big your space is then it is not big enough. There is much truth in this. While having a few figures such as present dollar-size of a market plus forecast growth rates may be necessary in some cases, they are usually not necessary. Using the previous example of the "Priceline for lumber" - this is self-explanatory - it should be self-evident that the lumber industry is very large. One would not waste time trotting-out some industry/consultant's figures to back-up the fact that the lumber industry is large. It is and everybody knows this. Of course, the case may be different for more technical products. Try and remember that venture capitalists by and large understand their business and "get" it. Do not try and "convert" them - they are generally already "there" with you.
THE MOST IMPORTANT THING TO REMEMBER IS: DO NOT JUSTIFY OR OVER-ANALZYE THE ASSERTIONS THAT SUPPORT YOUR FIGURES. AN ELEVATOR PITCH IS NOT A DEBATE AND YOU ARE NOT IN A COURT OF LAW. YOUR TIME WOULD BE MUCH BETTER SPENT BETTER EXPLAINING YOUR VALUE PROPOSITION IN GREATER DETAIL OR SIMPLY RESPONDING TO QUESTIONS. ONLY PROVIDE DETAILED JUSTIFICATION IF ASKED.
3) Follow this basic format and address these three questions in every Elevator Pitch: a) Why is it worth doing? b) How are you going to do it? c) Why are you going to win?
- Why is it worth doing? This means: What is the opportunity? What is the problem you are looking to solve? Will customers pay money for you to make this problem go away?
- How are you going to do it? This means: How will you implement your product, service, et al? How will populate your target market? How will you sign-up your customers and partners? How will you do all this before your competitors do? How will you get customers to pay you money?
- Why are you going to win? This means: Does your team or technology or existing customer base or all of the above grant you a decisive, substantial and sustainable advantage over both existing and future competition? First-Mover Advantage is NO guarantee that you will win - the Fast-Follower is not always a bad spot to be in. Consider it this way: your start-up is pursuing a great opportunity - which, other companies also must be pursuing - why would someone want to bet on you instead of another company?
4) Tell the listener a bit about yourself.
If you are the entrepreneur, it is important to establish "cred" with the listener. Spend some precious time in talking about yourself, where you are from, ie. former jobs/positions and prior accomplishments either with the current start-up or elsewhere. Do not brag but do not similarly shy away from talking in a matter-of-fact manner about your accomplishments and/or experience and other qualities that make you qualified to be the head of your start-up.
5) Never, ever, ever say that you have no competition.
It is an immutable fact that your start-up has competition. It may simply be the case that your competitors are not direct competitors but larger, existing companies in somewhat similar spaces that could easily crush you if they wished to enter your space after you have validated it. If you really do not have competition, then this is bad, as it is probably a sign that your space is unvalidated, ie. if it is worth doing, then why are you the only one doing it? (Contributed by the Canadian Consulate in Silicon Valley.)
Story: Ready. Set. Pitch. You have 30 seconds to sum up your business. Can you do it? Define your market. Describe your focus. Promote your management team. Detail your financial plans. Introduce your investors. Do it alllllllll in just 30 seconds. Think of it. In just 30 short seconds you have to sell yourself and your amazing business.
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