The elevator pitch is as important as the business plan, some people call it twitter pitch (but I think 140 characters might be too short).
Bplans explain what components a perfect elevator pitch must have; every single angle of a business plan in a short visionary version is laid out.
Top components of an elevator pitch:
First you need to be clear about what problem your business will solve; without this there is simple no business. People require solutions to the challenges and issues they face. The definition must be simple and straight forward, so everyone can simply see the pain point:
- “communication with remote teams can be complex”
- “completing paperwork for a A&E doctor is time-consuming”
- “filling out your tax return is difficult”
When you have defined the problem, the solution needs to be explained. This also needs to be simple and focused.
Who is experiencing the problem you described?; it’s critical that you always keep in mind the persona you are targeting, their problem points, what pressing issues keep this person up at night. If your market is too big, then follow the divide and conquer strategy, segment you target market and prioritise the same.
To have competition means that there is a market for the problem you are trying to solve, you also need to think not only on direct competition but alternatives. Like a wristwatch company competing with mobile phones, also think how well they solve your target market and which opportunities you have to differentiate your value proposition and positioning yourself differently.
People is far more important that ideas, people is what make ideas work. You need to explain how well this team can work together, what skills are they bringing to your company. You don’t need to have all the team in place but you need to understand what gaps you have and how you plan to close those gaps and when.
6) Financial summary
In here you basically need to clarify your business model; how you create value and how you convert that value into profit. Remember numbers never lie, be hard with your numbers, you need to do sales forecast and expense budget (these are based on assumptions).
In here you present a high level plan, no need to enter in details but clearly identify large milestones / phases; their ordering, dependencies and when these will happen. This is the operational plan and it will picture your business as real as possible.
This great infographic from Bplans explains each component of an elevator pitch.