MAHLATSE TOLAMO | JANUARY 27, 2021
An elevator pitch goes beyond sharing what you do but to entice your prospect clients and investors to want to know more about your business. The goal is to be short and snappy therefore, the ideal length of an elevator pitch typically takes no longer than 30-60 seconds.
Always remember that this pitch is only meant to open the door to a longer conversation not to deliver your entire business plan. Let us take a look at the questions which will guide you when preparing your elevator pitch.
Many people try to make the idea sound impressive, but it is okay to also keep it simple because it needs to be pre-digested. If communicating your product is difficult then an effective tactic could be walking the investor/client through the user path. The goal here is to make the client/investor interested enough to ask follow-up questions.
If you are entering an existing space you can research and if you are creating a new product, you can estimate the number of customers that would want your product and approximate how much you might charge them. There are two methods of estimating your market, top down, and bottom-up approach. The former lets you determine the total market and estimate your share of it and the latter lets you figure out where your comparable products are sold, how many there are, and the percentage of those sales could take.
This is similar to ‘what problem are you solving?’. You need, to identify the value you offer to you customers or clients and this can be derived from different conversation with customers, deep analysis of current products in the space and personal experience. A startup unique insight gives the investor information of what the company does.
The end of your pitch should be the start of your real dialogue. Be clear about what you want and give the lead something next to do in a call to action. You must make sure that you leave investors wanting to continue talking to you.
Your elevator pitch should be clear, interesting, and concise. If you are successful, a potential investor might request for more information or discuss about possible investments.
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