I am amazed that many entrepreneurs cannot tell me what their idea, business model, company or market focus is all about using only a few, simple sentences. The same goes for their executive team in many cases.
These are all very smart people who have worked hard to develop a detailed business plan or even a successful company looking for additional capital, but have neglected to develop the Cliff Notes version of their story.
I want to know the following about your company, I want to know it in one page, and I want to know it in plain English:
- What do you do? Start out with a simple explanation of your business premise, such "We provide value via easy to install and use on-demand sales force management or whatever technology to the consumer products/retail or some other market".
- Who is your target market? Please. Spare me the Gartner multi-billion dollar market estimates for your proposed target market. You and I both know this is BS. Make sure that you can precisely describe your ideal customers, their hot buttons and why they would want to buy your products and services.
- What is your IP? What unique capabilities have you created, patented or established in the marketplace? Intellectual property is the core of your value creation and the basis for why someone will invest in you.
- What are your solution offerings? How have you translated your IP into valid service offerings that customers are buying? Why are they buying?
- Who are your competitors? Please do not say you do not have any. Everyone idea has competitive ones in the market, perhaps not as well developed as your idea, or one based on older technology. How will your products and services stack up against these offerings and why will customers flock to your solutions?
The elevator pitch requires a lot of rewrite and practice to make perfect. Without a perfect elevator pitch, the entrepreneur can lose the interest of potential investors in the first five minutes of their meeting. Trust me on this one. I have seen it happen too many times.
Comments