An elevator pitch is an informal definition of succinct and comprehensive speech, which presents a concept of goods. Its origin isn’t clear enough, but the most famous story tells that the phrase came from the U.S. in the 1990s. A senior editor of Vanity Fair, named Michael Caruso desperately strived to share his ideas with the chief editor, and since the chief editor didn’t have plenty of free time Caruso joined her in short elevator rides. Thus, the name elevator pitch appeared.
General technique of Elevator Pitch
Generally, a nice elevator pitch can’t be longer than sixty seconds. However, in case it’s possible to shorten the speech to thirty seconds, a speaker should do that. It should be persuasive, succinct and catchy. And also it should be interesting, a listener or whole audience must be keen on a person’s speech. Elevator pitch should clarify the reasons why an investor must put money in a project, thus. it’d be perfect to include some benefits, advantages and general features of the project.
It’s interesting that there are phrases ever shorter than the described above, it’s known as twit pitch. Since this social media post can’t be longer than 280 symbols, Twitter is a perfect platform to promote extremely short and yet comprehensive ideas.
There are several points that should be included in the elevator pitch, they help to make it more engaging and succinct:
- brief presentation of yourself and your firm;
- short explanation of the idea you suggest to tackle a certain problem;
- prove that your idea is the best among all presented (here you may include profound arguments and competitive advantage);
- show why your idea is lucrative;
- call to action.
Where and how elevator pitches can be used
Elevator pitches are quite often learnt by heart by entrepreneurs and even may be rehearsed in elevators. In case an entrepreneur runs into a potential investor, a memorized pitch definitely helps to look more impressive and in some ways more persuasive. Also, on the Internet many different forums and events exist in which people may introduce their pitches. Moreover, in such forums often potential investors may be faced. For instance, startup incubator firms may organize special programs in order to foster startups. Such programs include a part, where the CEOs present their elevator pitches. In these pitches “pain points” to tackle, methods used and advantages of the idea are explained.
Although the perfect length of an elevator pitch should be around twenty to thirty seconds, as it was mentioned above, the length may differ on a case-by-case basis. Thus, it can be rather longer than a real elevator ride and comprise more complete information about, for example, members of the team that is engaged in the production. The presentation also may include profound information about how the product will be introduced to the market, how clients will be attracted (creation of a client base) and what the prospects for the development exist.
In competitions where or similar events, elevator pitches may be included as a competing part. Thus, participants one by one present their elevator pitches. The winning in such doesn’t play a big role, the most important is the opportunity to present ideas and projects in order to find potential angel investors, venture capitalists or other people who probably support new business.
Elevator Pitch in finance
The phrase elevator pitch has a special meaning in a business field. It usually refers to the situations in which an entrepreneur needs to persuade a venture capitalist (the person who appears to be an investor and provides money to the companies with a high potential) the concept this entrepreneur develops is worth venture capitalist’s money. Normally, a speech may be considered successful in case it boosted investor’s interest. Also, if this entrepreneur intends to raise seed capital, he or she may prepare a more formal presentation.
Elevator pitches are excellent tools for investors to estimate whether they should put money in a startup or shouldn't. Also, it may be utilized by people of different occupations (it can be project managers, salespeople or job seekers) as a tool to promote themselves and their projects or ideas.