JUNE 2007: BUSINESS TOOLS, SALES TECHNIQUES
The
importance of the one-minute pitch
“We are here to make happy fish. Happy fish are
profitable fish.” Did that statement get your attention?
Presented at the University of Oregon’s New Venture
Championships recently, it’s an example of an elevator
pitch. An effective one should capture the listener’s
attention, make her interested in hearing more and take up no
more than a minute of her time. Or the amount of time
you’d have in an elevator ride.
Distilling your business plan in advance into a one-minute
pitch is a good way to be prepared for a chance meeting with
someone who could help your business grow. “There’s
going to be that opportunity, short in nature, to inform
someone,” says Randy Swangard, managing director of
UO’s Lundquist Center for Entrepreneurship.
Bernie Hansen, founder and manager of Business Diagnostics
LLC, a consulting company in Tri-Cities, Wash., says a good
elevator pitch is a concise, clear summary of a company.
“It’s like a good joke,” he says, easy to
tell and understand but most importantly, “the listener
should remember enough to reasonably communicate it to a third
party.”
A pitch should communicate the following about your business,
and do it in 60 seconds:
Identity: This can be
as straightforward as a simple introduction or as elaborate as
setting a specific scene in the listener’s mind. Keep the
introduction short to allow plenty of time to dive into the
main argument — why the captive audience should be
interested in your company.
Purpose: “Be
very clear on what are the essential elements of the
business,” says Hansen. Keep explanations simple, as time
is limited. Technical terms and jargon can come in subsequent
meetings. “Detail will only trip someone up,” says
Hansen. However, remember to include what he terms
“take-aways,” key information you want a person to
know. Simple metaphors can save time and help an audience make
a quick connection.
Business plan: The
speaker needs to be convincing and credible to allow the
listener to understand and repeat the message. This is an
opportunity to explain the necessity of your company’s
product in the marketplace. Swangard says it’s important
to outline your company’s potential to solve a specific
problem. Time permitting, briefly define your company’s
business model. Swangard says you need to explain, “Why
is it that you can do this when no one else can?”
Financial needs: Now
it’s time to drive your request home by clearly stating
how much money you need and how you’ll spend it.
“We are looking for $500,000 to expand statewide,”
gives an investor a better idea of their contribution’s
value than, “We need $500,000.”
A unique edge: This is
what Swangard calls the “secret sauce.”
“It’s something unique that gives you a competitive
edge,” he says. “No one bets on the horse, they bet
on the jockey.” At the conclusion of the pitch, your
audience should understand why your company deserves an
investment. If you’ve been successful, you should have a
business card in your pocket before the elevator doors
close.
— Colleen
Moran
Have an opinion? E-mail feedback@oregonbusiness.com
