Council Post: Seven Tips For Making The Best Elevator Pitch For Your New Product

By Stephen Dalby, founder of Gabb Wireless Inc., the first nationwide cellular network for kids.

When it comes to getting investors’ attention, you have just seconds to make a good first impression. This is where an elevator pitch comes in handy. 

Whether it’s something you say in a speech that lasts less than 60 seconds or you put it on a one-sheeter, your elevator pitch has to deliver a compelling reason your new product will be successful and explain why someone should be interested enough to invest in both the product and you.

Through my fundraising efforts for my own products, I have come up with some tips for putting together the best elevator pitch that gets you the financial support of investors.

Get right to how your product solves a problem. 

Investors don’t want to know that your product is cool or has some unique features. They want to hear what it can do that will solve a problem or alleviate a pain point for a specific customer. When you don’t have much time to describe the problem, you’ll need to make it as simple as possible in a sentence or two and explain how you plan on solving it. 

For example, with my company, my pitch was this: Parents want their kids to have a phone so they can stay in touch, but they don’t want them to have full access to everything on the internet. I follow with my solution: I have a smartphone that gives them talk and text capability but without access to the Internet, social media, or extra apps.

Describe your target customer. 

When I stated the problem above, I listed a specific type of customer who has this problem and needs a solution. Although your customer segments may expand as your business naturally expands into new avenues, it was important to focus just on the types of customers I could be sure to reach first.

Your product may be relevant for more than one demographic straight out of the gate, so list those in your pitch. Sharing the size of your potential customer base along with their average spend also helps peak investor interest. 

Briefly acknowledge the competitive environment. 

If you are aware of any competition, mention them and why they haven’t yet been able to solve this problem or pain point. This shows you’ve done your research and you know why and how your product could be more successful than what is already out there.

For me, I found that smartphone providers were more interested in offering apps and internet access than catering to a sustainable and large base of customers like parents. I noted that I could make a difference with parents who did not want to spend $900-$1,000 on a phone but would love the price point that I offered. 

Show the depth of talent and skill on your team. 

When it comes to a sports team, an owner wants to know that they have more than one star player. They look to develop and invest in something where talent and skill run deep. Similarly, your elevator pitch should touch on who’s playing on your team and how they help generate success through this new product. 

Even if you don’t yet have an entire team, that’s OK because you can still talk about those who are on board and how you plan to add incredible talent. 

Create a financial picture. 

Although you don’t have all the numbers lined up for the next few years, it’s important to share a quantitative forecast for what your product can achieve. That includes a price point for selling the product, how much it costs to make it, and how much profit it should generate. 

Present measurable milestones. 

Your elevator pitch must also include what you’ve been able to do so far to progress your product and company. For example, it would help to share that you received a patent, trademark or FDA approval, if applicable. 

Or, if your business involves a location, share how those plans have advanced in terms of a space, lease and opening plans. Investors want to see the first signs of traction, which tells them you are going somewhere rather than just spinning your wheels. By defining your milestones, you’re showing the investor that you have a plan to be successful, which is appealing.

Practice makes it closer to perfect. 

Spend time making it sound and look right. Practice saying it out loud if you plan to present it that way and create different versions, including the one-sentence pitch. That way, you are prepared for any opportunity. If you plan to have a written elevator pitch, develop many drafts until you have distilled the messaging down into the most concise version possible. 

The more you practice the elevator pitch, the more natural it will feel and sound, helping draw in the investor. I have recorded myself and sought feedback from friends and family for both my oral and written elevator pitches. 

Keep this in mind.

It’s a lot of information to get across in such a short time. However, I prefer doing an elevator pitch over other types of presentations because it forces me to focus on the most important things and cut out all the fluff. By taking the time to shape your elevator pitch, you’ll give yourself a leg up in winning funding.