An elevator pitch is a brief speech that outlines your idea/service/product. The name comes from the idea that it should be delivered in a short time, usually the same amount of time it takes you to ride an elevator.
An elevator pitch is like an executive summary that gives an overview of your business and details of why you’re going to be successful. Your elevator pitch should address the following:
- Define who you are: one short sentence about who you are and what you do.
- Define the problem: what is the problem your idea is addressing?
- Define the solution: what solution does your idea offer? How is it going to make the lives of your customers easier? Your solution should always come AFTER your problem statement.
- Target market: what kind of customers will your idea be targeting? “Everyone” is an acceptable answer. Your target market should be clear and concise.
- Describe the competition: think about what advantages you will offer relative to your competition? Are you faster, cheaper or better? Why would a customer choose your idea over your competitors? What is your value proposition?
- Financial summary: you do not have to include a detailed forecast. Your financial summary should include information about the expenses you are going to have and how you expect to cover them.
- Show traction with milestones: what are your upcoming goals and how do you plan on achieving them?
Investors judge the quality of your elevator pitch to decide if your idea is worth investing in. You need to cover all the above points in a short time of 2-5 minutes, always be clear and to the point. Don’t waste time with unnecessary details.