Business Plan Preparation: Elevator Speech Business Plan Preparation Frank Moyes Leeds College of Business University of Colorado Boulder, Colorado

Business Plan Preparation: Elevator Speech Elevator Speech  What is the objective?  Who are you talking to? What motivates them?  Must be exciting and compelling  This is a conversation, not a speech

Business Plan Preparation: Elevator Speech Elevator Speech  Explain the problem or need, size of the opportunity  Describe the target customer  Explain proposed solution. Why unique?  Tell why the customer cares  Describe the management team  Describe the competitive environment. Who are the competitors? How are you different and better?  Numbers Dorf & Byers, Technology Ventures

Business Plan Preparation: Elevator Speech The Elevator Pitch Based on material developed by:

Business Plan Preparation: Elevator Speech The Elevator Pitch  Goal: Buy-in  Investors  Employees  Customers and partners  Critical Attribute: Focus  What do you want remembered?  Result: Motivate  Listener wants to hear more

Business Plan Preparation: Elevator Speech The Elevator Pitch  The order is flexible, but cover these points:  What market are you in?  What urgent problem are you solving?  What is the size of the opportunity?  Value proposition  Why will you win?  Where is the validation (customers, investors, etc.)?

Business Plan Preparation: Elevator Speech Elevator Pitch Communication Imperatives  Show passion, energy, and enthusiasm  Use appropriate eye contact when face-to-face  Slow down and speak clearly  Be brief (target 60 seconds)  Be Confident  Use understandable vocabulary

Business Plan Preparation: Elevator Speech Elevator Pitch – Example P1 Diamond develops proprietary thin film diamond products and equipment that dramatically improve heat dissipation on microprocessors, solving one of the highest priority pain points in the industry. We address growing markets that will exceed $1.5B by 2006 and will become the dominant supplier with the best team having the most comprehensive patent position in the industry. Intel is our largest current investor, and we are actively engaged with other top target customers and partners who provide very strong references.

Business Plan Preparation: Elevator Speech How Do You Get Immediate Attention? Reduce to one sentence or question what is unusual, interesting, exciting or dramatic.

Business Plan Preparation: Elevator Speech Elevator Pitch Exercise  Your name and the name of your firm  Your pitch  Evaluation by class on a scale of 1 to 10  Urgent pain  Large growing market  Unique, defensible position  Validation  Communication skills  Desire to hear more

Business Plan Preparation: Elevator Speech Be Prepared to Answer Questions About  Product and technology  Marketing strategy  Market research  Revenue and profitability  Funds required  Valuation