How to Create an Elevator Pitch that Your Investors Can't Turn Down?

Sometimes, 60 seconds is all it takes to win over investors and clients with an idea they just can’t refuse. That’s the magic of the tried-and-tested elevator pitch.

The formula—when followed to the letter—can spell the difference between your business clinching a new project or investment deal and it fading into the background of other more amazing presentations.

It’s an executive summary of your business, but with a bit more jazz.

Hollywood screenwriters, who toss around idea after idea before studio executives, suggest thinking fast on your feet as you sell your idea to the other person. The same is true when dealing with investors.

How to Get Started

But while you want to make your elevator pitch short and sweet, you’d also want to make sure you’re setting reasonable targets for your new business in the 60 seconds (or less!) you’re given.

Everything—from your business philosophy to your target market to your financial status and prospects for the future—will be encapsulated in one pitch. So, make every word count and practice your rhythm.

What words and images do you want associated with your brand? Who are you pitching to, and how would you want them to respond? Do you want to start slow and build up the excitement? Or do you want to open your presentation with a memorable line?

Your answers to these questions will define the overall character of your pitch even before you begin diving into the details. Once you’ve decided on your flow, it’s time to structure the presentation.

Here are tips on how to write an incredible elevator pitch:

1. Identify the problem.

Every great business idea is a solution to a problem. It might not always be as complex as developing a self-driving car or a vaccine, but it should always aim to make life better for a specific group of people (target market). The narrative should start with an everyday scenario people can identify with, then zoom out to show that the problem is something many other people face.

2. Present your solution and your unique value proposition.

Now with a clear idea of the problem, lay down your plan to solve it. Are you pitching a product or service that can genuinely bridge the gap for consumers, improve a situation, or fix a recurring issue? It isn’t enough, however, to simply launch just any old solution on the market.

The pitch has to highlight what makes your option unique, what other solution providers have failed at, and where you come in as a new (and indispensable) player.

Your unique value proposition takes your elevator pitch to the next level by identifying something only your business can do and do well.

One example is about how to find a solution to the widespread issue of data breaches. While there is a host of options available to consumers, the company that frames cybersecurity as a method of securing the future from the inside out stands above the competition.

3. Know your market and competition.

The people you are trying to help with your new solution will be your target market. To convince your investors that your idea responds to the needs of your consumers, you’ll need a thorough understanding of the demographics and psychographics of your ideal buyers.

• Demographics refer to the easily quantifiable attributes such as age, sex, occupation, or income group of your target consumers; for example, retirees with a net worth of one million dollars

• Psychographics, meanwhile, refer to the culture, attitude, habits, hobbies, interests, and preferences of your ideal buyer. Entrepreneurs know these intangible traits are seen in the kind of purchases consumers make; for example, millennials who sign up for Spotify Premium

Background research: When doing market research, remember to study how big your potential customer base is and how much they are already spending on existing goods and services. Pack this information into a solid sentence. For example: “Our personal chef service offers a 5-star hotel dining experience for clients who want to savor world-class cuisine.”

Once you’ve pinpointed the group of consumers you’re targeting, it’s time to identify your competition.

• How long have rival businesses been in the industry?

• Where are they advertising/selling their business/products/services?

• At what price point are their products/services sold?

• Do they offer exclusive promos to attract potential buyers and retain existing ones?

4. Sum up your current financial status and describe the road ahead.

In one clear statement, present your business model or how you plan to keep money flowing and profits growing. It helps to answer the following in one go:

• What are the costs of your business? How do you pay (or plan to pay) those costs?

• What have you accomplished so far in terms of research and development and building your inventory?

• How do you plan to go from promoting the brand to increase your conversion rate?

• How much funding do you need?

• And, most importantly, what will investors get out of the venture?

Invite your potential investors on your journey.

As a parting shot, don’t forget to circle back to your main message: you have a solution to a problem no one else has solved well or solved so far, but you need the help of people who share in your vision.

It’s all a matter of storytelling. It may be easy to get caught up in the details of the business, but at the end of the day, a great elevator pitch entices potential investors to come along on the ride.