123012327 the elevator pitch

7/22/2019 123012327 the Elevator Pitch

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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?

123012327 the elevator pitch

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