Elevator Pitch Meaning
An elevator pitch describes the brief introduction to a particular idea, product, project, or service. It should be short, quick, and efficient, similar to an elevator ride rather than taking stairs. They are typically used for utilizing opportunities like landing a job, sales opportunity, business partnership, securing investments, etc.
The goal of the pitch is to capture the audience’s interest so that they want to know more about the idea presented. It assists in expanding one’s professional network and saves time and energy spent on conveying the ideas. Pitches attract attention and help retain or gain more money in the venture.
Table of contents
- Elevator Pitch Meaning
- Elevator Pitch Explained
- Elevator Pitch Examples
- How to Make an Elevator Pitch?
- Frequently Asked Questions (FAQs)
- Recommended Articles
- An elevator pitch refers to the brief introduction given to a particular concept, product, and initiative. They are essential tools for capitalizing on business or job opportunities.
- The purpose of the pitch is to pique the audience’s curiosity and make them want to know more about the plan being presented. It facilitates the growth of one’s professional network. They save time and effort spent communicating ideas.
- The Elevator pitch structure shall contain an introduction about the company and why it requires funds. It shall be short, interesting, and demonstrate future growth potential for the investors.
Elevator Pitch Explained
An elevator pitch is a synopsis or concise summary of the business idea with a delivery time of around 30 seconds to a few minutes (rarely). It should be short and concise. People utilize the pitch to market their ideas or products or themselves. Elevator pitches are used even in job and career fairs. It can be a part of personal interviews too. However, more often than not, it is a method of introducing the concept of a business venture to a knowledgeable audience. A good pitch should consist of reasons why the idea is good and will work, its positive features, benefits, and profit factors.
Elevator pitch for business will describe the problems the company is attempting to solve through the proposed plan. Highlighting the uniqueness of one’s startup idea becomes crucial to capturing the attention of investors. However, the main purpose of the depiction will be to answer why the business idea will succeed and the steps that the business will take to achieve it; in other words, the blueprint of the venture. This will speak volumes about what it uniquely possesses, making it different from others.
An elevator pitch is slightly different from an elevator speech. People deliver a pitch to investors in a formal atmosphere, mostly with a visual presentation of the idea. They can deliver it over an e-mail or through a presentation. But an elevator speech, as the name implies, is a type of speech that is typically presented during an introductory meeting or a social gathering.
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Elevator Pitch Examples
The following elevator pitch examples are provided to give readers a basic understanding of the concept.
Dany is planning to venture into business and has an idea for a business startup. But, first, he needs to make a presentation to convince many investors to fund his venture. Then, the investors can establish an evaluation of the success of a business by looking into the following components:
#1 – The existence of an issue
A viable business model will look for problems that potential customers encounter. These problems need not be massive and can also solve simple problems for a section of people if they can be profitable.
#2 – Elaborate solutions to that issue
There should be identification of the problems along with listing of the solutions. There should also be means and ways to achieve them.
#3 – Target market
The business must direct the problems and solutions to a specific group of people. Market segmentation analysis becomes crucial here. The business should also consider the size of the market base.
#4 – Competitors
Giving the prospects an idea of the existing competition is essential. It demonstrates the ability of a business to analyze the ground reality and work towards progress. For the proposal to succeed, it must offer faster, cheaper, or better solutions than its competitors.
#5 – Finance
The pitch doesn’t have to cover detailed five and ten-year plans but an understanding of the costs and future profit that investors can achieve. The proposal should convey these to the investors. Numbers are an easy tool of communication, giving the idea a platform to shine.
#6 – Milestones
The presentation can demonstrate the milestones achieved by a previous business idea or the one it aims to achieve. This conveys that the business intends to make its plans a reality for the investors.
The elevator pitch desk of Airbnb in 2009 can be quoted as a classic example of a successful presentation. Airbnb is an online marketplace that assists in connecting tourists looking for local accommodation and transportation with residents who are willing to provide that as a service. The elevator pitch managed to grab attention and raised nearly $600k from investors leading to its successful launch.
How to Make an Elevator Pitch?
Preparation of an elevator pitch for business can seem complicated, but keeping in mind certain pointers can inevitably help in the successful creation of one. A good elevator pitch structure shall contain the following aspects:
#1 – A brief introduction
Introducing a product, project, or service requires presenting the type of business they are being inducted into. This is because it establishes the connection between the idea and vision they cater to.
#2 – Lasting about 30 seconds
The presentation shall be for 30 seconds. However, the standard average can be 118 seconds, the average time taken for an elevator ride in New York. The first 8 seconds shall be the most crucial ones, and points shall frame them in such a manner that it demands the attention of the investors. The information should describe the company’s uniqueness and how it connects with the prospect. This helps in showing how the business stands apart from its peers.
#3 – Must pique curiosity and generate responses
The prospects will be shown how the products and services offered can benefit them in a short period. Highlighting future growth numbers can make a difference here. Making the curious about what the business can offer will make the tides turn in the idea’s favor. A good elevator pitch template can help information be presented attractively.
#4 – Emphasize the idea’s worth and the problem it can solve
No business idea can be successful unless it offers something unique. It can be something a company’s competitors lack- by finding solutions to existing problems. It can even be doing something better than the current standards. The pitch should show the value of the services or products and helps evaluate the prospects.
#5 – It’s not about you, it’s about them
Emphasis on the profit generated, the growth potential, and the market it can capture. However, talking about the advantages of the ideal alone can be a blunder. The pitch should involve other prospects also. It should speak about the benefits the investors get by investing in it.
#5 – Relatable
The presented idea shall be relatable. It should solve the existing problems and must be realistic in the first place. A utopian vision of the issues and solutions cannot guarantee investment. The presentation should also convey the company’s individuality to convince the prospect. After all, being one amongst many cannot guarantee profits and won’t attract funding.
Frequently Asked Questions (FAQs)
It is a brief of one’s business that can be composed of information conveyed through e-mail. The summary shall contain the businesses’ unique aspects, why they will work, the profit potential, and the means to achieve it.
A typical elevator ride in New York City lasts 118 seconds, and a pitch should take the same amount of time. Businesses can use an Elevator pitch template to present information concisely.
It is so-called to resemble the quick process of utilizing an elevator instead of stairs. Presenting the comprehensive research and analysis of the idea can be time-consuming, and using pitches is fast, efficient, and gets the job done.
Investors value time and money. They want maximum efficiency with the capital invested. It is important as it communicates crucial aspects of the business and startup idea within a short period.
This article has been a guide to Elevator Pitch, its definition and Meaning. Here we explain how to make an elevator pitch, and its explanation along with examples. You can learn more about accounting from the following articles –