Estimated Time
- Reading: ~6 minutes
- Video: ~9 minutes
- Activities: to be completed prior to the next week
- Insights
- Keep it short and simple
- Clearly highlight the essential
- Have a specific ask at the end
- What is (and isn't) an elevator pitch?
- An elevator pitch is a quick way to build credibility and spark interest in your business
- There is an introduction
- State the problem and how you solve it
- Provide your value
- An then have an ask
- Jason advises founders to constantly work towards building credibility as the leader of a startup
- A clean elevator pitch is a great place to start
- The first 30 seconds are so critical in making a great impression
- The elevator pitch gets its name from being able to pitch your business in the length of time you are on an elevator
- This concept can be applied to the 280 characters you get on Twitter to explain yourself
- Why do you need an elevator pitch?
- As a founder, you never want to waste an opportunity
- You may get a very limited number of shots to talk to the right people and you always want to be prepared
- You never know who you might meet and where
- If Jason ever jumps on a Monday live session or a Midweek Check-in and asks who can tell me what they do...
- You want to make that impression
- If you ever meet an investor, a customer, or a potential hire you want to be able to articulate how you are different and why they should care without hesitation
- It doesn't matter if it is a top-tier investor, someone applying for a job at your startup, or a stranger at the store...
- If they ask you "what you do" or "what does your startup do" you need to know how to respond in a way that they understand
- Starting with "well, mmmm, we kind of do this thing..." is an immediate red flag and a hit to your credibility
- Jumping right into a description with buzz words doesn't get the job done either
- Your response needs to be crisp, clear, and confident
- The best way to prepare an answer for this question is to genuinely know your customers and truly understand your product
- Be able to introduce yourself (and your company) and state what value you provide and to whom
- Knowing who you are (and the problem you solve) allows you to answer the question directly
- This also allows you to relate your statement to previous parts of the conversation that may have initially peaked the question
- Be Crisp
- State who you are (or answer their question) directly
- What does your startup do is not asking for your history, or what you might become, or why you kind of pivoted a year ago
- What does your startup do should have an explicit response
- What. Do. You. Do. - that is it!
- This is a response that anyone that works for you should be able to state!
- Focus on the best way to get your purpose across in as few words as possible
- You can always dig deeper if they ask for more details or explanations
- You can not take back words if you begin to ramble
- Rambling gives the impression you don't have an answer - a huge red flag
- Be Clear
- This is a great opportunity to implement your "one simple sentence"
- No buzz words; just a crisp, clear, and clean sentence that anyone could understand
- Any great company can explain what they do in one simple sentence
- You can incorporate the problem, your solution, and your value all at once
- Think back to Uber example, "We help you get rides faster and cheaper."
- Problem: Rides take a long time to get and are expensive
- Solution: Uber fixes this problem
- Value: You have a ride sooner and cheaper
- Maybe they will follow up asking "how" or "tell me more" at which point you can provide more detail
- But they will absolutely understand why they would call an Uber
- This is the main goal of the elevator pitch
- Having a crystal clear value proposition that explains who you help and how you help them improves the chances of continuing the conversation
- No sale will happen if the customer (or investor) is confused about what they are buying (or investing in) — be clear!
- Be Confident
- Investors are often investing more in the founder than in the startup idea
- Think back to the qualities of a winning founder
- Is this founder credible?
- Are they going to be the one to solve this problem?
- Founders who don't wait for permission, don't make excuses, and who are resilient typically have something in common; confidence
- If you don't believe in yourself, or your idea why should an investor or a customer?
- Do not apologize for the current stage of your MVP or the limited traction you may (or may not) have
- Own the progress, celebrate what you've accomplished, and share it proudly
- As a founder, you see the imperfections and know how it'll get better, but the person you are pitching to does not have that level of insight
- Don't give them a reason to say no by leading with (and apologizing for) your work in progress
- Every product is getting better, users expect it to improve over time - explain how you solve their problem right now (not ways you fall short)!
- Dr. Barbara Markway "Why Self-Confidence Is More Important Than You Think"
- If you are crisp, clear, and confident when speaking about your startup you come across as knowledgeable and credible
- The person you are talking to is more likely to trust you and understand what you do
- This improves the chances that:
- An investor will invest in you
- A customer will buy from you
- An interviewee will want to work with you
- An individual will be able to introduce you to your ideal customer in their network
- An elevator pitch is not a demo
- In an elevator pitch the why is more important than the how
- If done correctly and with the right audience an elevator pitch may lead to a more formal pitch and demo
- We will cover those topics in the coming weeks
- How to demo your product
- How to pitch to investors
- You will have the opportunity to pitch to the LAUNCH team and some portfolio founders at the conclusion of Founder.University
- An elevator pitch is not a product onboarding or intended to highlight your product features
- You are briefly explaining solutions to known pain points
- It is not a list of product features
- It is important to practice your elevator pitch
- It would be a good idea to have a few different elevator pitches prepared to be able to reference depending on the situation and the time
- Having a 10, 30, and 60-second elevator pitch is pretty common
- It is more important that you deliver a crisp, clear, and confident pitch than worry about the stopwatch though
- Read the room to figure out how long you have
- Is it one simple sentence and then let the questions come?
- Do you have a few more seconds to share why they should care?
- It is a great idea to always leave them wanting more
- Your elevator pitch should be scripted but not robotic; planned but natural
- The more you practice the more natural it will become
- You want to use your small amount of time to peak interest in your solution
- Hopefully, it leads to follow-up questions and is a way to continue the conversation
- Or in the right situation get a follow-up meeting
"Self-confidence doesn’t mean you won’t sometimes fail. But you’ll know you can handle challenges and not be crippled by them."
- Preview of and investor pitch for those who are already starting these conversations
Additional Resources:
- How to Craft and Deliver an Elevator Pitch
- Common Elevator Pitch Blunders, and How to Fix Them
- Elevator Pitch Examples for Startups and Entrepreneurs
- Elevator Pitch Templates
- How to pitch Jason Calacanis
Activities
Script a 10, 30, 60 second elevator pitch
- Have a plan for when to use each one
Practice, practice, practice - record it, listen back, and workshop
- Send a recording to a friend, advisor, and collect feedback
- If you can't be vulnerable with yourself or your friends and family while watching a recording - selling is going to be very hard
Workshop a specific ask to use depending on the situation
- This could be to have a follow-up meeting
- Set up a demo with team members
- Be a beta user of the product