Elevator Speech Definition
According to Investopedia, an elevator pitch is a short, concise outline of "an idea for a product, service or project." The pitch is usually geared toward a financier such as an angel investor or venture capitalist with the goal of capturing the core advantages of the idea, in an easy to understand way, in the time (30 to 60 seconds) that two persons are on an elevator.
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Elements of an Effective Elevator Pitch
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Briefly describe what you are selling. Start with who will be the market for the product and how large it is expected to be. If you are presenting to a financier, include potential return on investment (ROI) and how how your company will make money.
Describe the background of the key members of the management team and the strengths they bring to the business. If the extent of actual experience in a similar business is limited, then highlight the level of training within the team. An "A" team with a "B"-level business plan is more likely to receive funding than the other way around.
Its also important to describe the competition. A reasonable level of competition in the space is proof that the business is viable. Include a review of the company's competitive advantage. This can range from exclusive contracts to patent protection for a new technology.
Advantages for the Listener
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A short, concise pitch is an opportunity for a financier or investor to decide if the idea is built on a sound basis and whether she would like to hear more. A good idea that can be readily delivered and understood in less than 60 seconds can often become a good investment.
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Elevator Pitch Tips
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Begin with an attention-catching statement or question to open. Your audience should want to listen for more detail rather than do a polite "tune out." Speak with passion about your idea. Try to link your idea with an already successful business model, for example: "Our business model will make us the eBay of book publishing." Practice, practice, practice! Think of it as a one-time opportunity. Make it count. The pitch needs to be created and delivered in exactly the right way to stir interest.
WEBook: an Example of a Concise Elevator Pitch
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WEbook CEO describes the company as a next generation book publishing house looking to do for publishing what eBay did for commerce. It's a platform allowing authors to collaborate and improve, with the final version being voted on. The company will split the revenue with the author on a 50/50 basis. The company's goal is to carve out a share of the $50 billion publishing market.
Close with the "Ask"
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Always state what you are asking for. The pitch should close with a request for your target's business card, including an address for you to send an executive summary of the business case, a time for a detailed follow-up presentation, or a referral to someone else in his organization who would be interested in discussing this idea further.
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