To make sure youâ€™re ready to seize the moment when fate puts you on that elevator with Mr. Moneybags, here we give you our advice on delivering an effective â€śelevator pitchâ€ť in as little as a one-minute ride. After all, Mr. Moneybags is always in a hurry and youâ€™ve got to hook him quickly or youâ€™ll never see him again!
You have to convey all the essential information in a clear and concise manner, communicating in a tone thatâ€™s likeable, passionate, compelling and credible.
Remember, the elevator pitch is not designed to take the place of a solid business plan, but is simply intended to capture the attention of a potential investor. If you achieve that, the odds are good that you'll get a chance to present your business idea in more detail at a later time (which makes having a complete business plan a must).
When you deliver an elevator pitch, you have to clearly and succinctly address the following points:
The order of these points can be changed around depending upon your strengths. If, for example, youâ€™ve got the most amazing and experienced management team, by all means, bump that up front. Or, if youâ€™ve got incredible initial sales results or testimonials, then mention that earlier. Whatever you believe is most compelling, you have to try to mesmerize Mr. Moneybags before he gets off the elevator!
Read the pitch out loud and time it - you'll see that it can be done in 60 seconds or less. You'll need to be able to pitch your idea in the same amount of time.
"Our company is called ConstructionBoots.com, an e-commerce website that sells brandname construction boots. There are currently no companies serving this niche exclusively. ConstructionBoots.com will drive traffic to the site by linking to other websites catering to the construction industry as well as through word-of-mouth. In industry surveys, over 90% of construction workers have these three traits: 1) they have a favorite brand of boots, 2) they know their size, and 3) they hate shopping at stores. In our own polling, over 70% indicated that they would prefer to buy their boots online and have them delivered. Accordingly, we expect a great market response and rapid sales ramp-up.
We need $1.5 million in funding to get to the point where the company is self-sustaining. This should happen in the middle of our second year. Right now, we're seeking $500,000 of initial funding in exchange for a 30% ownership stake in the company. I am the CEO with lots of operational experience and deep contacts with boot manufacturers. Our Marketing Director was instrumental in the growth and recent sale of a very successful e-commerce clothing company. If we hit our numbers, we expect to be able to sell ConstructionBoots.com to a 'brick and mortar' retailer within 3 years."