In this video, Wil Schroter, CEO & Founder of Virtucon Ventures, shares his 3 keys to a perfect elevator pitch.
Transcribed article based on the video above.
The importance of an elevator pitch to an entrepreneur is a big big deal. The elevator pitch is how everyone is going to hear about your business for the first time, whether their investors, employers, potential employees, even the media. A well-crafted elevator pitch is going to be your calling card to the entire world. Spending time on it and really drilling down into the most important parts of the business, the most important parts of the pitch, is really worth your time.
The first thing you’re going to think about is, which problem am I solving and which solution am I going to put behind it, in trying to dig down, as in, how big is that problem? So take for example eBay, the problem eBay is solving, they’re going after a huge market of people who have something to sell. There are millions of people that have something as simple as something in their closet, something in their garage that they want to be able to unload to a larger population. Their issue is they don’t have a forum to do it. So eBay’s solution is to create an online marketplace to allow people to sell. Well, that’s a great explanation and a great business concept, but that’s a lot to talk about. So the first thing to do is to try to encapsulate that into a simple pitch that everyone can understand.
The second tip is to clearly state what it is your business does. You’re going to take this big problem and solution and you’re going to distill it down into one sentence. EBay, for example, allows anyone to sell anything in an online marketplace. It’s simple, it’s easy for everyone to understand and it’s distilled into one point that people can communicate. The third thing is giving people a sound bite, something that people can tell others about, like in eBay. Everyone understands eBay and Netlix and Craigsist because those concepts are easy to understand.
Most people that are going to be selling your business won’t have you in the room, they’re going to have to explain your business to someone that has never heard of you or the company before and having that sound bite is going to be extremely important and that’s the key to your elevator pitch.
Wil Schroter is the founder and CEO of Bizplan. You can read more of his posts here on Docstoc or check out his blog and business plan software at bizplan.com.