Crafting a Killer Elevator Pitch: A Guide for Startups

How much time does a startup founder have to convince an investor of the company’s potential? A minute or two, or perhaps 15 minutes, to present a pitch deck? As everyone’s lives continue to get busier, it is more important than ever before for startups to make a strong impression fast. Crafting a killer elevator pitch can make a difference for companies like yours.

Understanding the Elevator Pitch

What is an elevator pitch? The term describes a brief way of getting your point across or making a connection with another person. While there is no hard limit, most elevator pitches take about 30 seconds or a minute to make.

The elevator pitch is called that because the time you have to get your point across is roughly the same as the time it takes to ride an elevator. Imagine finding yourself riding an elevator with the CEO of a venture capital company that could change your startup’s destiny overnight. Would you have the words ready to convince that CEO to make time for a meeting or take your call? A strong elevator pitch can achieve that.

To be successful, elevator pitches are rarely made up on the spot. Instead, it is worth preparing them ahead of time and polishing them so they are as powerful as possible when the opportunity arises. As a startup founder, you never know who you might meet at a networking event, sit next to on an airplane, or stand nearby in an elevator. Having your pitch ready can open doors that other founders could only dream of.

Key Elements of a Killer Elevator Pitch

Although no two companies are ever exactly the same, and the most effective pitches are tailored to your circumstances, most elevator pitches have five key components.

Start your elevator pitch by introducing yourself and your company. Step two includes a brief description of the problem that your product or service is solving. Make sure the person you are talking to understands why this is a critical issue.

Step three gives you a chance to showcase why your solution is unique and superior to anything that is currently on the market. Without bashing potential competitors, make it clear why you are head and shoulders above. Step four covers the financial aspects of your pitch. Investors and venture capitalists are unlikely to back a startup team that cannot project potential growth and expected return on investment.

Finally, step five is a call to action. Just like marketing communications connect better to an audience when you tell your audience what you would like them to do, your elevator pitch should culminate in a clear and persuasive call to action. This could be asking for a meeting to present a pitch deck or the opportunity to send more information. Remember to keep it brief.

Tailoring Your Pitch to Your Audience

Like other sales pitches, elevator pitches are more successful if they are customized to your audience. When you are preparing potential pitches, think about the main audiences you would like to connect with. For most startups in the early stages, audiences fall into three categories: investors, customers, and strategic partners.

Some of the pitch elements may be the same: steps one and two, covering your introduction and explaining the problem your product is solving, are unlikely to vary much. Step three offers you a chance to showcase synergies between two companies to potential partners.

Step four answers the question of “what is in it for them?” When you are talking to potential customers, this is a great opportunity to reiterate which problems your product solves or which pain points it addresses. Strategic partners will want to know how their business can benefit.

Lastly, your call to action will differ according to the audience. You may want to convince potential investors to meet for a more detailed pitch. Perhaps customers can already pre-register to be the first to buy your product or download your app. Strategic partners may want to meet your team.

Real-World Examples

If you are looking for inspiration to help you craft your own elevator pitch, look no further than the ABC series “Shark Tank.” For 15 seasons, budding entrepreneurs have been pitching their ideas to entrepreneurs and potential investors on the show. Those who delivered a memorable pitch not only received investor backing but also turned some of the businesses into huge success stories.

The most notable of these success stories is that of the cleaning brand Sponge Daddy. Founder Aaron Krause credits preparedness with his success on the show and in real life. The company had sales of $100,000 before appearing on the show. Partnering with Lori Greiner for a 20% stake allowed it to increase sales to more than $200 million.

Crafting Your Story

Preparation is one of the elements that make an elevator pitch successful. Weaving a compelling story is just as important. However, before you start writing pitches, take another moment to think about your audience. How can you bridge the gap between entering the elevator and introducing yourself? A clever hook is a great way to transition from standing in silence to a powerful pitch.

As you are preparing your elevator pitch, remember to connect your solution to your audience’s pain points. This will make your pitch more relevant to them before launching into your mission, unique selling points, and your vision for your business. It also helps ensure that you retain your audience’s attention.

Conclusion

Elevator pitches may be quick, but crafting a compelling and impactful proposition takes time. While these pitches may seem like they’re being delivered off-the-cuff, they are generally the product of hours of hard work of writing and re-writing until they are just right. Invest that time in your elevator pitch, and you will see the difference in the results almost immediately.