Elevator Pitch

1241 Words Mar 13th, 2013 5 Pages
The concept of the Elevator Pitch is borne from the idea that if you met an investor on an elevator and only had 30 seconds to pitch your business, what would it sound like? In fact 30 seconds is about as much attention as you are going to get from an investor to begin with, so thinking in that time frame makes a lot of sense.

The formula for the perfect Elevator Pitch involves three ingredients - the Problem, the Solution, and the Market Size.

The Problem
Every great company starts by solving an important problem. The more accurately you articulate the Problem, the more valuable the Solution will be.

Think about how NetFlix.com solved the problem of having to go to the video store in order to rent a movie. No one enjoyed having
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Even if you don 't entirely understand the problem, you can certainly understand that 90 million people probably add up to a pretty big market opportunity.

Picking the right Market Size is about identifying a portion of the market that is likely to buy your product. It 's not everyone that 's ever seen a movie; it 's everyone that is currently renting movies. Maybe it 's less than that if some percentage of those consumers don 't use the Internet.

You don 't need to have the world 's largest market, but be mindful of going after a market that is obviously too small (like the people renting Fletch) for fear of turning people away before they even have the opportunity to hear you out.

Put it Together, then Pare it Down
Now we 've got a nice understanding of the Problem, Solution and Market Size. The next step is to distill that explanation down to an easy-to-remember bite-sized sound bite that still covers all the bases.

Let 's try a shorter version:

"NetFlix helps over 90 million Americans avoid driving to the video store by delivering movies directly to their doorstep without ever paying late fees."

In one sentence we 've tackled the Market Size, Problem, and Solution in a way people can easily remember. Most importantly, in a way you can remember when you 're explaining what you do a million times over!

In many cases, you 'll be lucky if you get just enough time to get this one message across, so refining the message is key. Don 't

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