123012327 the elevator pitch
TRANSCRIPT
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The Business Plan Pitch
Kirstie Chadwick
Director
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Very Important Point
You are NOT pitching a great idea, team orproduct
You ARE pitching what your business will do forinvestors and for customers
SO, pitch how your business will solve a tangibleproblem that exists TODAY!!
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Example
WRONG:
We are the smartest telecom guys in the world and we aregonna install high bandwidth wireless telecominfrastructure in really tall downtown buildings in big citiesall over the world
BETTER: We enable you to use your cell phone anywhere inside
every building in all major U.S. metropolitan areas
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Elements of the Pitch
The Hook- pain point or heart grabber
Brief description of product/service
Brief market description with opportunity
Brief description of competition
How you are different from other solutions
How you will make money - biz model
Partnerships and alliances
Sales and distribution plan
The experience of the team, board, etc.
Five year financial forecast with milestones
Investment request with ROI expectation
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Elevator Pitch Must Haves
Hookstatement or question that immediately
piques interest of recipient
Passionif you are not excited about yourbusiness, no one else will be either
RequestAsk recipient for permission to call, areferral to others, or feedback
Shortassume you have less than a minute,and sometimes only time for a few sentences
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The Hook
The hook should simply ID the pain you solve We make Napster legal
Have you ever had your cell phone fail inside a building?
Imagine a rubber coating that conducts electricity.
We will change the way people invest their money.
Tag lines can be used as a form of a hook GE brings good things to light
NY TimesAll the news that is fit to print
Venture LabWhere education is a venture
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The Product Pitch
KISSKeep It Simple, Stupid
Kill the geek speak
Focus on customer benefits, not technical
benefits
Tell a story that paints a personal picturefor your audience
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The KISS of the DevilToo Much Information
WRONG:Our technology is the first integrated and automatic book scanner that willscan and digitize bound documents at a speed of 1,200 PPM at a fraction ofthe cost of existing solutions based on a disruptive digital imagingtechnology initially developed at Bell Labs and protected by 12 patents.
BETTER:We capture the future of knowledge by seamlessly digitizing physicallibraries at a very low cost.
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Geek Speak Is Boring
WRONG:We provide non-penetrable intrusion detection for digitalvoice, fax and wireless communication devices with our2048-bit Hellman encryption algorithm that is combinedwith the latest 168-bit Hellman DES.
BETTER:We allow you to communicate safely on a broad range ofdigital devices.
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Customer Benefits, Not Technical Benefits
Seamless integration
Scalable, adaptable
Secure networking
Improves networkperformance
SO WHAT???
Increase your revenues
Reduces your risk
Cut your costs by 30%
Technical Benefits Business Benefits
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The Market PitchTie to a Burning Need!!
ID the problem or need you solve in 1-2 sentences We allow any cell phone to work anywhere inside buildings that utilize our
wireless network solution.
Reference a brand-name customer that is using yourproduct (or that has expressed interest) The FAA has determined that we are the only security system that is able
to rapidly move people through security check points while exceeding theirsecurity needs
Quantify your market size with numbers that are from atrusted 3rdparty source According to the American Hospital Association, there are 4,000 hospitals
in the U.S. that need the ability to visualize MRI images in 3D
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Know Thy Competition & Acknowledge It
Microsoft
You
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Neutralize Your Competition
Pitch 1-2 Unique Differentiators that paint apicture We use the same insulin compound provided in Mercks drugs,
but we allow children to take an oral dose instead of a shot
There are many flavors of PDA keyboards, but ours is the onlyone that folds into the PDA device when it is not in use
While there are many wireless router boxes on the market, oursis able to send signals through cement and steel walls
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So, How Will You Make Money?(Optionaldepends on time and uniqueness of business)
Simple description of your business model
Recurring revenue models are ideal We will install the wireless network in a building at no
charge, and then charge a usage fee for all calls that wecarry
We provide free access to our medical informationwebsite for consumers, and charge advertisers for eachexposure
Our portable fuel cells will be installed in laptops, and wewill receive a royalty from Dell for each installation
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Why Invest in You?
Factinvestors invest in people, not products
Our founders have over 20 years of combinedexperience in the telecom industry
Our board includes two top executives in the restaurantfranchise industry
Our technical staff has a combined portfolio of over 30medical device patents
We just recruited John Smith to run our sales team. Youmay recall that John took Google from $3 million to$100 million in sales in two years.
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Will You Help Me?
Always end with a request: Could I follow up with you at a more convenient time to present
our company in more depth?
Given your background, I would greatly appreciate yourfeedback. What do you think of our business model?
I know you have a lot of contacts in the energy utility business.Who would you recommend for us to ask to join our board?
Could I have your card? I would like my CTO to follow up withyou on your technical questions.
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Top 3 Elevator Pitch Mistakes
1. Focus on selling a cool product/idea
instead of on the viability of the business
2. Take too long to get to the pain/problemthat you are solving
3. Dont engage the recipient via questionsthat request them to engage with you
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An example
Have you ever had your cell phone fail inside a building? We provide a communications network that enables any cell phone to
work anywhere inside all types buildings, while ensuring yourcommunications are secure. The FCC has determined that over 60% of the 5 million commercial
buildings in the U.S. inhibit wireless or cell phone communications fromwithin. The percentage is even higher in international markets
While there are many vendors that provide internal wireless networks,we are the only vendor that enables communications to penetrate steel
and other high density construction materials, which significantlyreduces the cost of installation
We will install the wireless network in a building at no charge, and thencharge a usage fee for all calls that we carry on our networks
Our founders have over 25 years of design experience incommunications systems, and Bob Marriott has recently agreed to joinour Board of Directors.
It is my understanding that you invest in young communicationscompanies. Can I follow up with you next week to discuss our businessin depth?
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Questions?