60 Second Pitch

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BUSINESS PLAN INSIGHT Develop an Elevator Speech A very useful exercise for a new firm is to develop an elevator speech. An elevator speech (or pitch) is a brief, carefully constructed statement that outlines the merits of a business opportunity. Why is it called an elevator speech? If an entrepreneur stepped into an elevator on the 25th floor of a building and found that by a stroke of luck a potential investor was in the same elevator, the entrepreneur would have the time it takes to get from the 25th floor to the ground floor to try to get the investor interested in the business opportunity. Most elevator speeches are 45 seconds to 2 minutes long. An elevator speech might come in handy on many occasions. For example, many university-sponsored centers for entrepreneurship hold events that bring investors and entrepreneurs together. Often these events include breaks designed specifically for the purpose of allowing entrepreneurs looking for funding to mingle with potential investors. The other thing an elevator speech does for a young firm is force the founders to develop a very concise, to-the-point description of the business idea. An outline for a 60-second elevator speech is provided here. A new venture’s elevator speech should be carefully prepared and practiced often. STEPS IN AN ELEVATOR SPEECH Step 1: Describe the opportunity or problem that needs to be solved. 20 seconds Step 2: Describe how your product or service meets the opportunity or solves the problem. 20 seconds Step 3: Describe your qualifications. 10 seconds Step 4: Describe your market. 10 seconds

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