Raising money to get your startup off the ground is often the most significant impediment for your growing venture on the path to securing a solid chance of success. And it’s no surprise that’s usually where even the most creative and promising startups bite the dust.
However, with a proper approach, you can secure appropriate and essential funding to get your startup to the next level. Needless to say that sourcing for investors is a prevalent and effective strategy to raise money for your startup. Still, attracting the attention of investors and securing one is not a forte many entrepreneurs thrive in. Having an elevator pitch for your growing venture separates you from the latter.
Preparing and having a solid elevator pitch upfront at your fingertips can spark interest to prospective investors in a nutshell and give you the funding your startup needs. Also, it’s one of the most productive ways to appreciate your business in all directions.
By the end of this guide, you will have garnered life-saving and practical tips on making and delivering an excellent elevator pitch that will hit the mark of raising money for your startup.
Raise Money For Your Startup With These Elevator Pitch Tips
In a brief yet enthralling summary, preferably not more than 60 seconds, you should be able to explain what your startup entails clearly and succinctly. For example, what problems do you solve, your clientele and market, and how do you stand out from existing brands or technology.
First and foremost, your main objective of pitching out to investors or relevant parties shouldn’t be focused solely on getting the investment instantly. Instead, it would be best to get another meeting to discuss more details on the funding strategy.
What to Include in Your Elevator Speech
A solid pitch should always start with a strong opening line. In most cases, potential investors are more likely to remember a ‘catch phrase’ than the full details of your pitch. Also, bear in mind investors get to hear elevator statements all the time. Therefore, your opening statement must catch your listener’s interest and make them desire to know more.
Consequently, you should have a brief introduction of yourself, especially how your former or current professional background, if any, will play a part in how competent you are to run the startup. For instance, if you are launching a business in the food industry, mention your years of experience as a chef.
Give a description of your startup and the main reason behind you establishing the venture. Talk about attributes that make your company different from others. At this point, mentioning the team behind your startup and how unique their qualities are would be favorable. Emphasize what problems your startup solves and, if possible, the positive early traction you have already procured.
How is your clientele benefiting from you? All in all, pinpoint how you add value to your customers.
As we have mentioned, an elevator pitch should be brief. At this point, you should have already summarized your statement and got ready for the call to action. Expect the listeners to shoot some questions at this point. And you should have the appropriate answers. But, more importantly, don’t coy from asking for feedback regarding your idea and issuing out business cards.
What to Avoid in Your Elevator Speech
Again, your elevator pitch should be short, memorable, and concise. It should make the listener, especially the investor, intrigued until they offer you a sit down to hear more about your business. To make the best use of those few but vital moments, it’s best to avoid being overly wordy. Also, even though you have limited time to convey a lot of information, avoid speaking too fast.
You should have practiced your elevator speech before audiences with investors. If you keep on surpassing a minute mark, you should figure out some irrelevant content you can do without. Rephrase words in a way everybody can easily understand. Also, not everyone you’re pitching out to has the knowledge base in your industry. So, keep the terminologies simple and avoid using jargon.
Don’t get it wrong. Yes, it’s okay to write and go through your elevator pitch before meeting your listeners. However, don’t read your pitch to your investors. Some investors scrutinize and decide from the tiniest of facts. Facts such as a startup owner failing to deliver a pitch without notes.
Yes, we mentioned that you should briefly introduce yourself. Still, don’t focus too much on yourself. Just the essential details that warrant you as the right person to run the establishment.
Consider elevator pitches as a sale in the main. Therefore, you should be specific and upfront about your goal. In summary, avoid being ‘too general.’
Don’t put too much emphasis on your listener. This can, at times, be unappealing to investors. However, being confident and passionate when pitching out goes a long way in compelling investors to put their money into your venture. Your startup’s value should close the sale ultimately. Not you. Therefore avoid putting so much pressure or seeming desperate on finalizing any deal.
Also, avoid faking it. Don’t overlook the facts. Improvising new facts with many buzzwords to get investors to ride on your wave will ultimately make investors tune out.
How to Make Your Elevator Pitch Catchy
A perfect elevator pitch can’t exist if you are unaccustomed to your business plan. Be knowledgeable about all minor details regarding your industry, your competitors, market base, and marketing strategies. You have to be prepared to answer any questions with confidence.
Check out the following extra tips to make your elevator speech more memorable:
- If possible, include a question at the start of your pitch. This way, you can gauge your listeners’ reactions. For example, you can begin by: “Wouldn’t it be wonderful if we can….”
- Your statement should be revisional, depending on the audience. Essentially, know who your listeners are.
- In the end, remind your listeners of the bigger picture. Additionally, ask an enticing or interesting question. For instance: “Is this a scope you might be willing to give a chance to?”
- Unfortunately, if someone isn’t interested in your startup, thank them for their time. For interested parties, hand out business cards and follow up the matter within 24 hours.
It can take some time to get your elevator pitch to be perfect and appealing. You have to draft and go through several versions before settling for the ideal elevator statement in most cases. Still and even better, refine it based on the feedback given from people you reached out to. You are likely to get better and better if you practice it in front of various audiences.