Last week I had the opportunity to attend a trade show. Unfortunately, at many booths, particularly those of startup companies, I left without a full understanding of what the exhibiting company really did. The experience reminded me of the challenges of putting together a good elevator pitch. An elevator pitch is a brief description of a business idea. It is termed as such since it usually must be delivered within the time that you spend with an investor in an elevator, or just a few minutes. Much like an entrepreneur seeking capital, the exhibitors at the trade show were challenged with giving an elevator pitch that would get their target audience to write them a check. Most of the new ventures that exhibited did not have concise pitches. They used lots of words, but never clearly explained what they offered. Conversely, several new ventures had pitches that were interesting and encouraged prospects to learn more. Each of these ventures' elevator pitches shared the following three characteristics; characteristics that entrepreneurs should incorporate in their pitches when seeking capital, partners and/or employees: 1. Offering a concise definition of the benefits of the company's products and/or services. No one really cares about how good a widget is; rather they care what the benefits of the widget are to them. 2. Using examples of other companies. New companies, particularly those offering new products or new ways of doing things, often have a difficult time explaining what they do since they focus too much on details of how they do what they do. Rather than describe these details, companies should start by mentioning a well-known company that the investor/customer/other individual knows. They should then explain the positive differences between the well-known company and their organization. This allows the prospect to quickly grasp what the company does, the benefits it offers, and its advantages over others. 3. Stressing competitive differentiation. A new company exists to fulfill an unmet need. That unmet need is the result of competitors not providing an adequate product or service to customers. In their elevator pitch, companies should stress how they differ from competitors and how this allows them to fulfill the unmet needs. Similarly, companies can discuss similarities between competitors, since rarely are competitors all bad. The elevator pitch is crucial for companies who seek capital, customers, partners or employees. Perfecting the elevator pitch can thus have a significant impact on the success of a new venture. |
