30-Second Elevator Pitch Creation: How to Glue your Investor?
Attracting funds for an idea was never easy - so came the idea of “elevator pitch”. A description of your startup, elevator pitch must be concise and even a 10-year old must be able to understand it in the time it would take for the elevator to ride up. Everybody in the startup world knows about these, but only a handful seem to have delivered a good elevator pitch.
A good elevator pitch is not all about an elevator discussion. It can be leveraged in every networking case or as an introduction. The elevator pitch can be the first few lines of your executive summary, pitch deck, business plan or the first few folds of your website’s homepage. Keep in mind to maintain a constant message across different channels - a different message everywhere is pointless.Your elevator pitch structure must have these key elements:
Problem Solution Glue
Start your pitch by getting the investor(s)’ attention. Your first statement must intrigue them to listen more. The investor must feel glued to a problem and expect a solution soon after. For example, “Hey, I just patented a gasoline engine that delivers twice the power for every unit of fuel consumption. I need your help to market it.”
Keep it short
Your pitch must not exceed more than 30-60 seconds. In fact, try to finish up within 150-225 words. Going beyond that limit; when you talk fast and pump 500 words or so, in the same period - it won’t do any good. They key is being concise and straightforward about your offer and expectation.
Flash your passion
Your idea alone won’t get the funding your startup needs. You, as an individual, will play a major role during the pitch. Investors expect conviction, energy, commitment and proactiveness from entrepreneurs. Before you head into the elevator, build a mind map on how do you expect them to get excited. Well, if your startup sounds like a dull subject to you, it is time to rethink your brand’s storyline.
End with a request
Don’t end your pitch abruptly. It is better to ask for something at the end of your pitch - for example, you could ask for a timeline to give a full presentation, or ask for a referral to someone who might help.Some additional tips to make your pitch impactful:
Describe your product or service
In your pitch, try and provide a one-paragraph description of what you aim to sell. Investors look for actual market value and your feature lists stands redundant against their discretion. Simply put, try to focus on customer benefits. The benefits might outline why your product/service is a must-have, or just nice to have. This piece of information will help the investor justify the funds he plans to stake in your startup.
Quantify the market
Market research is of paramount importance, irrespective of the business or industry you operate in. When making a pitch, outline how large your market is, how much investment do they have to make, and the strategy on incremental growth. Your product might be innovative, but your startup will never take-off if you don’t hit customers with funds to spend.
Outline the revenue model
Clarify the investor about your revenue model at the first interaction itself. Handing out free products, or selling below the costs might be intriguing for the customer, but your business won’t be attractive.
Highlight people strengths
Against all odds, even if your idea is not novel and complements an existing solution, you might still be able to crack in the investor’s purchase intent. Communicate your high points, and your team’s background and achievements.
Present a sustainable competitive advantage
Your business is destined to get lost if you don’t have a point of differentiation against your competitors. During the pitch, you have to communicate effectively how your startup differs and why do you own an advantage over the competition. This might be a patent, key partners, or an innovative distribution channel.
In contrast to angel investors, startup incubation platforms like iPRONTO, can help you with the funding and help you startup scale up. How? The platform is populated by investors, mentors & service providers. You can readily connect with them, and understand their expectations. Accordingly you can optimize your strategy and boost the prospects of success for your idea.
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