What is an elevator pitch?

 

The term "elevator pitch" is a short sales pitch, that is a summary used to quickly and simply define a process, product, service, organization or event and its value proposition. The term itself comes from a scenario of an accidental meeting with someone important in the elevator. The conversation will either continue after the elevator ride or end in the exchange of business cards or a scheduled meeting.

 

An elevator pitch is limited to as little as 90 seconds.  In the Riata Pitch and Poster Competition, we would like you to capture the essence of your business in 90 seconds.  The best way to do this is to start with what you want to say and then condense it, so you retain the most critical elements. See the guidelines below.

 

The substance or content: what should your elevator pitch cover?

 

• • The problem: Open with the customer problem you are solving or the need you are fulfilling. A real-life scenario about the problem helps the investor or customer understand the problem or need in personal terms and gets them to agree that it is an interesting problem that needs fixing.
  • The solution: Briefly describe what you are selling and how it solves the problem. Do not go into excruciating detail, but explain why it works.
  • The market: Briefly describe those to whom you are selling the product or service. Address the industry or market your target audience represents and give any testimonials or feedback you might have. Describe particular market segments.
  • The competition: There is always some form of competition. If there is no competition, then there probably is not a market. Competitors help the investor or customer understand the problem, existing solutions and the potential size of the market. They also prove that your business model and concept will work. Acknowledge the existing ways to partially solve the problem and the companies that have partial solutions, and then explain why yours is better.
  • Competitive advantage: You need to effectively communicate how your company is different and why you have an advantage over competitors or other providers. Do you have a unique product or service? Are you creating some kind of unique customer experience? Do you have a better distribution approach? Do you have key partners that enhance your ability to deliver value to customers? Do you own or have access to proprietary technology?
  • Scalability: Briefly discuss the ways you plan to expand while growing both your company and revenues.
  • The revenue model: Explain your revenue model or how you expect to make money. What sort of margins will you make?
  • Operations: Very briefly talk about how you will produce your product or deliver your service. What sort of systems or processes will you use? What will be outsourced?
  • The team: Tell a little about you and your team’s background and achievements. Discuss your experience in starting companies or specific experience in this market, as well as advisors, financial backers, and contacts that will help you reach new customers.
  • The finances: Discuss the amount of financing you have or need, the total required for the execution of the business plan and the long-term vision of the business.
  • The close: Reiterate that you are solving a problem in a specific market with a model that works and a team that can execute.

 

The delivery: how do you get your message across?

• • Be concise.
  • Speak in plain English. Avoid industry or technical jargon and bring it down to “the man or woman on the street.”
  • Ask qualifier questions. This will ensure that you are targeting the right person with the right message.
  • Grab the listener’s attention. You might try to develop a tagline to pique interest or make an analogy between you and a well-known company. “We sell indulgent experiences” might be the tagline for a dessert bar that sells high-end desserts. “We’re Yahoo for teens” is a good, short way to say that you are trying to create a search engine, directory, or web portal for teenagers.
  • Tailor your pitch to your audience. Explain how your product specifically solves their problem.
  • Show your authenticity, passion and enthusiasm. Being true to yourself and excited. This shows the person you are talking to that you believe in what you sell.
  • Practice your pitch until you have it memorized and can say it to anyone. No matter how good your pitch is, it will not help if your delivery is not polished.

 

Other useful tips

• • People hear and read thousands of things every day. Try to present your product or service in a unique and unforgettable way. For example, an interior decorator might say something like “I help people bring new life to their homes or offices;" however, something more memorable and unique would be a tagline like “I help people overcome their fear of color.”
  • Creating a unique message in your pitch helps broadcast the philosophy of your brand and people will remember you because of your special approach.
  • If you have a prototype, you can have it displayed, but the whole focus is on your oral presentation. The poster is designed as an overview to fill in the gaps for the things you cannot specifically mention during your 90-second pitch.
  • Be confident, but not cocky.
  • Be professional in appearance. The image you are portraying should put a positive spin on your personality as well as your industry and title.