Sunday, March 24, 2013

The Entrepreneur's Elevator Pitch



Imagine that you have found yourself in an elevator with a wealthy investor who is seeking the next big thing.  You have 60 seconds to convince that investor to agree to a meeting.  What will you say?

Convey the following points:

  1. What your business is
  2. What problem your business solve or what customer need it fulfills
  3. The size of your market
  4. How you are better than your competition
  5. Exclusive rights or new technology (optional)
  6. The strength of credentials of your team
  7. How you will make money
  8. Sales or profit projections (optional)
  9. An interesting fact of a juicy bit of information that will leave investors wanting more

Do:

  • Be passionate about your business
  • Be clear and concise. Keep it short.
  • Write a script and rehearse your pitch

Don’t:

  • Don’t be dishonest
  • Don’t overuse salesy language.  Try to use facts, rather than subjective adjectives
  • Don’t describe your projections as conservative, be precise
  • Don’t expect your company to go public in order to repay investors

Understand that standard investors and partners get involved in startups because they see a big profit potential. If investors think your business will be the next Google or Starbucks, they will clamor to get on board.

Social impact venture funds invests in social enterprises, which have innovative and entrepreneurial driven solutions for urgent social and environmental challenges.  Social venture funds try to return the invested capital for future investments. This way, the power of the capital and not the capital itself is used for a positive impact.

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