This archive report was first published on 21 July 2021.
Published on July 21, 2021, a well-crafted elevator pitch is crucial for gaining the interest of valuable investors. It's a short speech, usually less than a minute, detailing a business idea, an existing business, or product.
When planning your elevator pitch, think about what you'd say to hook an investor in the minute or so it takes to ride an elevator from one or two floors. What would you say to an investor if you bumped into them in the elevator? What could you say to get them interested in your business and probably want to invest in it?
For this reason, you should have a powerful opening and then dive right into your main point in your elevator pitch. Think of an elevator pitch as an executive summary that gives a quick overview of your business and details why you are going to be successful.
Some key elements to include in your elevator pitch are answering how your product or business solves a problem, defining your target audience, acknowledging the competition, talking about your team, and giving a financial summary.
When answering how your product or business solves a problem, investors don't want to hear the cool features that come with your products or how you decided to go into business instead of following other career paths. They want to know what gap your business is filling in the market place to alleviate a pain point for customers.
Defining your target audience is also crucial, as it helps you focus on those who you can reach first. You must have a specific target audience in mind, such as office workers or school children, and estimate how much an average person in your target audience is willing and able to spend on your product.
When acknowledging the competition, mention them briefly and why they haven't been able to solve the problem for the customer. This shows a potential investor that you have done your market research and understand that you will face competition.
Finally, talk about your team and why you and your business partners are the right people to execute the vision. Explain the kind of people you have in your team and why their skill set is precisely what is needed to lead the company to success.
