The elevator pitch
I’ve been reading, studying, and practicing a lot on pitching to investors. The more I read and through more experience, I’m realizing how important it is to make sure that you have your elevator pitch down!
You may have a dynamite management team, a terrific product, a great marketing strategy for your niche market, etc…but if you don’t catch the investor’s attention you won’t get funded.
As I sat in on the interview with Bill Payne, he mentioned that one of the biggest mistakes that entrepreneurs make is that they approach the investor with a 20-30 pg. business plan. We must realize that investors are very busy individuals and the last thing that they are going to do is sit down to read a 20-30 page business plan.
The other mistake is that entrepreneurs are often too caught up in their product. As a result, most of their elevator pitch is spent talking about every little feature of their product and they miss important information that an investor needs. Now, I’m not claiming to be an expert…but here are a few things that I have learned:
- Speak english: Even if you have the most techical product in the world, you need to explain your idea so that the most common person will understand what you have.
- Catch their attention up front: what is it that you differentiates you from your competitors? Why will people buy your product? What traction do you have (i.e. any big name clients? how many current customers? how much revenue? etc.)
- Sell the management team: it is well-known that investors would much rather invest in an “A team” and “B idea” than an “A idea” and a “B team.” Show them how you can execute
- Include important investment information: how much are looking to raise? How much of the company are you willing to sell?
- Sell yourself: show the passion that you have for the company. Do you have “skin in the game?” (what have you sacrificed/invested to make sure the company will grow?)
- What’s your revenue model? How do you make money?
.
This list is not all-inclusive, nor is it necessary that you include everything that I have mentioned. Also, I don’t believe that there is a set way to pitch your idea…often creativity is very appealing. But, these are things that you ought to think about and practice so that you are ready anytime you encounter a potential investor.
What do you think? What other things should entrepreneurs think about?
