The Perfect Business Pitch

Pitching is becoming an ever more important part of modern business, especially for budding entrepreneurs hoping to get their ideas off the ground.

Whether you’re seeking investment or fine-tuning a business strategy, a strong “elevator pitch” can be crucial to realising your goals. An elevator pitch doesn’t follow a specified form – it can be a speech (60 seconds or less), a presentation, or a one-page business summary. However, there are certain core components which are common to every pitch, regardless of the delivery method used.

Below, we’ve broken these down into seven easy to follow steps.

Essential elements that every elevator pitch should contain:

1. Identify a Problem

Does your business idea solve a problem worth solving? Because if you can’t solve an issue which a potential customer might have you don’t have a sustainable business. Remember, why would a customer buy your product or service? Why would they choose you?

It’s not necessary to come up with a world-changing solution to a major problem. In fact, the issue can be very straightforward and uncomplicated. As long as the company is solving a particular problem for consumers, you can build up a viable business.

Think simple. Break down your customer’s problem to its most basic form. Can you explain the problem in one or two sentences or a couple of bullet points? You may want to solve multiple customer issues in the long term, but to begin with, it is best to focus on one core problem.

2. Define a Solution

Avoid the temptation to start with the solution. Too many business people come up with a product or service that they think consumers need without first identifying the problem. Don’t make that mistake. Ensure you are solving an actual issue before coming up with a remedy.

As soon as the problem is defined, describe the solution. A clear problem statement is useful to help focus your mind on sorting that one problem. Don’t overstretch the solution to cover multiple issues.

As with identifying your problem, you need to be able to break down the solution to as few words as necessary. The description should be high level and communicated through a few sentences or bullet points.

3. Think about the Target Market

Not only should you identify the problem and define a solution, but you also need to think about the potential customers. The target market portion of the pitch will outline exactly who has the problem you are solving and identify how many potential customers you can sell to.

Divide your target market into segments i.e. smaller groups of consumers you want to sell to. Avoid defining a target market that’s too large. Doing so lacks credibility. You may want to target everyone, but it is better to be realistic and focus on a specific group. Within this group, you might segment the market further e.g. a sports-shop targets athletes, then segments the market into runners, footballers, walkers, etc.

Once you’ve settled on your target market and the segments within, you need to do research. How many people are in each segment? How much does the average person in each group spend on the problem you want to solve? Then, multiply the number of people by the current spend to get a realistic market size number.

Your pitch will need to include the market sections you want to target, the numbers in each segment, and the amount they currently spend. These figures are crucial to for a successful pitch.

4. Consider the Competition

Even if no one is offering a solution similar to yours, your possible clients are already solving their problems with alternatives. For instance, when cars were first launched their competitors were horses, not other cars.

As you assess the competition and the alternatives they offer, ask yourself some questions. What advantages to you offer over their product/service? Why would potential consumers choose you instead?

Outlining the key things which differentiate you from the competition is a useful activity. It ensures that you are creating a unique solution that customers will opt for over others. The differentiators also help to focus your marketing strategy. What is the key value proposition that you offer and competitors do not?

5. Have the Right Team

Every idea needs the right team to execute if effectively. In the team section of the pitch, explain why you and your partners are the right people to achieve your business vision.

Highlight your team’s skill set. Remember, a company’s leadership team can sometimes be even more important than the business idea.

It’s not necessary to have a complete team in place. Understand where gaps exist in the management structure and acknowledge the need to recruit the right people.

6. Financial summary

You don’t need a detailed financial forecast for the purposes of a pitch. Instead, make sure you completely understand your business model.

A business model doesn’t need to be overly complicated. The most important aspect is to know who pays the bills and what expenses are involved.

When you know more about your industry, it is a good idea to create a sales forecast and expense budget. However, these aren’t required for a pitch.

7. Business Goals

The final component of an elevator pitch is communicating your business goals or schedule.

At this point, the focus is on your objectives and when you hope to meet them. Mention any notable goals you’ve already achieved.

Discussing business milestones in the pitch makes your business a reality. It shows how well you’ve thought through your idea and how you plan to launch your business and make money.

What next?

Once you’re satisfied that you’ve addressed and answered the above points, you’re ready to start working on your pitch. At this stage, you’ll need to determine what form the pitch will take. What supplementary materials will you need? Will you create a pitch deck?

Do you need assistance with pitching your business idea? Please don’t hesitate to contact Mark Day at Irish Business Plans. We have over ten years’ experience helping entrepreneurs develop their ideas and prepare professional business plans. We would be delighted to assist. Get in touch to find out more.