Elevator Pitch Preperation to Attract Investment
It is very important to plan your approach strategy well. Investors need the facts and delivered in such a way that provides all the pertinent information without the power of the proposal getting lost in the detail.
This is where the Elevator Pitch comes in. An Elevator Pitch is a brief introduction to your business. If you imagine that you have entered a lift on the ground floor and your prime investor is the only other person in the lift. You have the time it takes to reach the top floor to sell you business vision enough for that investor to want to learn more, hence the term “Elevator Pitch”.
There are a number of fundamental factors that an Entrepreneur or Business Owner need to consider when preparing a case for investment. Some of the important areas to consider are
- How much funding you need and what is it needed for
- How much control you are looking to retain
- The skills the business requires or growth
- What period you need the funds for
There are areas of your initial proposal that investors will be paying particular attention to
- What are the true funding needs of the venture?
- Can the idea or business realistically achieve goals?
- Is the venture appropriate for investment?
- Will the investment achieve high returns?
Ideally the initial approach covers the above in sufficient detail to give the Investor the required answer to the question “What is in it for me?”
There is a need to grab the attention of potential investors and present the Business idea as clearly and concisely as possible. Below is a set of guidelines as to what should be mentioned in your Elevator Pitch.
Market opportunity and market drivers
To effectively pitch the opportunity you need to describe who you are selling the product too. You also need to consider what industry the product or service targets, how large of a market does this industry represent and what is the markets potential.
The product offering and the need it satisfies
When describing your product or service in the initial approach it pays not to go in to too much detail, just a basic overview of what it is that you sell.
The business model
You need to quickly describe how your business idea will make money.
Competition for your product or service
Investors will like to know where you see your competition and what advantage you will have over competitors. What are your USPs? They could be pricing structure, they could be patented technology? Perhaps your company can offer a higher quality of service than your competition therefore a higher perceived value in the eyes of the potential customer?
Your background and expertise of your team
Investors would like to know your background, your experience and the experience of those supporting you in the venture. Its also advantageous to mention any commercial partnerships or joint ventures that you may have, and the relevant skills they bring to the business.
If you can get the above five steps across in the initial approach you stand a very good chance of your proposition being spotted and interest expressed. You will never receive an in-principle decision on investment on the strength of an Elevator Pitch alone but the Elevator Pitch will show your investment in its best light and serve its purpose by attracting would-be Investors.
Edge Venture makes the elevator pitch simpler
When you submit your free profile you are guided step-by-step through the pitching process, a bespoke elevator pitch is created that is then available to hundreds of Investors looking for fresh, exciting business ventures.
The unique process behind the Edge Venture system ensures that you provide a persuasive case for investment increasing your chances of a Business Angel, Private Investor or VC sharing your business vision and wanting to learn more.
