The Elevator Pitch: First Contact

Knowing how to give an elevator pitch, or a quick explanation of your business idea in 60 seconds (or fewer), can be a valuable tool for networking, pitching investors, and convincing prospects. So what is an elevator pitch? Well, it’s something like this:

"Hi! I'm Jane Smith, CEO of ABC Company. We provide clients with services in the following fields: ABC. If you have a need in any of those areas, please contact us. Thank you."

This is fine, but it’s not a great elevator pitch. It doesn’t tell your prospect enough to make them reach for their business card, call you immediately, and ask for more information. At the same time, it should be easy enough to understand so that anyone who has been introduced to it can repeat it to others without messing up the meaning or losing their audience (after all, the point is for someone else to take that information and do something with it).

An elevator pitch generally has three parts, which ideally should take no more than five sentences in all.

Part 1: Identify the problem you solve and the market you serve.

This should explain what your company does, who it serves, and why it's solving a real problem people have (or will have). The idea is to provide enough information so that people can understand what you do, but still be interested enough to ask for more information. Keep in mind that this is not a full explanation of your product or service - just an overview of the benefits it provides. This is where you identify the problem that your business will solve for the consumer – one sentence at most.

Part 2: Provide a specific way to describe your business or service.

This is where you go into more detail about the problem you solved, but you still stick to a very general description. For example, if you are pitching an app that tracks financial transactions, this might be something like "We provide reports on financial transactions so that people can easily identify trends in their spending patterns over time." You should also end with some type of selling point that makes it clear why they'd want to know more and help them decide if they want to use your product or service. A good example might the following sentence: "We provide reports on financial transactions so that people can easily identify trends in their spending patterns over time. The reports are fully customizable and come in a wide variety of formats, including PDF copies and high resolution images. There's even a version for iPhone users, or you can use the web-based version to get a report on your own computer. The reports are searchable so that you can quickly find information on people or items of interest."

Part 3: Provide a brief description of how the business works, what it offers, and what people do after using it.

This is where you describe the various ways people will be able to use your product or service and how they'll benefit from doing so. A good example might be: "We provide reports on financial transactions so that people can easily identify trends in their spending patterns over time. The reports are fully customizable and come in a wide variety of formats, including PDF copies and high resolution images. There's even a version for iPhone users, or you can use the web-based version to get a report on your own computer. The reports are searchable so that you can quickly find information on people or items of interest. We offer free instant access to demo reports so that you can see how the service works before purchasing."

 Note that this is an ideal example. If your company primarily provides services over the Internet it might be better to provide more specific details, such as how the service works online and how you'll be providing personalized recommendations based on analyses provided by previous customers.

Summary:

1) Be brief. It's easier to remember a short sentence than a long one. A great way to make your elevator pitch memorable is to repeat it verbatim back to the person you're speaking to, but in your own words. This makes it easy for them to recall what you had said and could be a great prompt for follow-up questions (just be careful not to let their interest decline, which happens if they see that you have no interest in them as an individual).

2) A good elevator pitch should convey two important things: why the consumer needs the service and how it will benefit from using it.

3) Use clear, specific language that conveys what you do and why it’s unique or better than the services provided by competitors. Try to eliminate anything that is confusing or that could be interpreted as a negative.

4) Be prepared to back up your claims with proof. It’s better to be honest about something you haven't achieved yet than to overstate what is possible for your business or product.

5) Keep in mind that this pitch is intended for people who already know little about your business – so don't waste time trying to make a sale by explaining every last detail of how the service works. Save that for prospects who want more information after hearing the pitch.

6) Don't be afraid to tweak the pitch based on the audience. Just don't make it so long that it starts to lose people's interest.

7) Have at least two other people give you a mock presentation and ask if they understand what you do and why they should be interested in working with you.

8) If someone asks, "Why are you here at this meeting?" don't launch into your elevator pitch right away - it's probably too soon for that person. Usually, the best thing to do is let them ask more questions so they can really understand who you are and why they should listen to what you say next.

9) Lastly, make sure you know how to answer the following questions:

a) Who your target market is

b) Who are the members of your team (and what they bring to the table)

c) What makes you different from other companies in your industry

d) How much money you hope to make with this business and why?

e) How many customers you hope to sign up and why? (for an SOHO company or a one-person shop, this is not a crucial part of the pitch - but it still helps if you can provide something here.)

Practice makes perfect.

As you get used to presenting your business in front of people, you'll find that the pitch will improve. Your goal is to develop the winning formula for the "perfect elevator pitch" so that you can give one confidently and comfortably every time.

Nathan: Your letter was excellent! I've already taken some notes and will definitely follow up on working with you in person. I'd also like to have you incorporate feedback from your meeting with my wife and daughter into the final version of your letter. Thank you so much Oliver! You're a star!

Tzipi: It's great how much the speech has changed from the first draft - it's pretty close to what we were thinking about.

Conclusion:

Don't be afraid to ask for help, even if you've done your research and want to be able to make a sales pitch by yourself. You will likely come across someone in your life who could help you write a better pitch, and with one or two iterations I dare say that it will turn out great. Most often all it takes is a tiny change, or the addition of one sentence that provides clarity on some aspect of the business you are trying to sell.

Of course, salesmanship is an acquired talent which takes years to master. If you want professional help in this area - we'll be happy to guide you through the process, as we have done so many times in the past for our clients.