Elevator Pitch Workshop 2007

8/9/2019 Elevator Pitch Workshop 2007

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Elevator Pitch and Abstract

Workshop


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Agenda

Introductions Elevator Pitch Presentation (11:00-11:40)

Q&A Interaction (11:40-12:00)

Assign Teams (12:00-12:10)

Team Breakout and Working Lunch (12:10-1:00) Group Presentations and Feedback (1:00 2:00

PM)

Q & A and Feedback (2:00)


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Elevator Pitch The Basics

Elevator Pitch What is it? In the time it takes to ride an elevator from the 1st to the 10th

floor explain the gist of your business idea to a stranger!

An elevator pitch conveys the businesses key features andrationale in a clear, concise way so that it can becommunicated easily to others

Who is the primary audience? Potential investors, customers, suppliers, partners, employees

Anyone who has or could have a stake in your business

Why does it matter? Communicate What, why, how, where and when

Teaser to generate interest the upfront hook!

Share a coherent vision of the firms goals and high levelstrategy for achieving these goals

And, last but not least - Raise $$$!

Plus, it might be your only shot!


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Elevator Pitch What is it?

Overview of the problem your business will solveand opportunity it will address

Why does this problem matter?

How severe is it?

How big is the opportunity?

How fast is it growing?

Why has it not been solved yet?

Why can you solve it when others could not?

What value is being created?

Who are the primary beneficiaries? Think about who is capturing the value

Consider that some groups may capture more thanothers these represent the ideal first customers


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What are the products and services that you willdeliver to solve the problem

How do these products and services meet theunsolved market problem?

Do they immediately solve the entire problem?

Or what is the product and service path for gettingthere?

Who are the competitors and why are yourproducts and services superior?

Focus on direct competitors Consider segmenting direct competitors by type

Why, where and how does each competitor or type fallshort?


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How do you plan to generate revenues Short term

Longer term if there is a twist or kicker

Hit the high points of your business model Profitability

Leverage As revenues and size increases, do grossand/or operating margins improve?

Scale efficiencies - how do the mechanics and economicsof your business model scale

What are the resources required? Money Capital intensity?

Time core development, unique product versions fordifferent customer types, distribution channel build, etc

Team background and expertise what are the criticalcompetencies of the team?


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Elevator Pitch Why it matters

Teaser to pique interest Punchy, crisp and clearly articulated

Incentivizes stakeholders to care by logically presentedthe case for how the business benefits them

Delivered with confidence but not cockiness

Should leave them wanting to hear more about thedetails at a later date

Communicate a common vision and goals

Everyone on the same page, working toward the samegoal

Minimize non-productive activities, speeds up time tomarket


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Elevator Pitch Why it matters

Raise $$$ Distilling the essence of your business idea into a few

critical points reflects well on you

Strong elevator pitch results in more favorableassessment of your talents by potential backers

VCs would rather back a Grade A management team with aGrade B product than vice versa

Decisions to proceed forward with due diligence areoften made on the basis of the elevator pitch and theaccompanying follow up conversation by seasoned VCs


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Elevator Pitch NU Venture ChallengeSpecifics

InNUvation Judging Criteria Primary: Likelihood of business success

Secondary:

Creativity with regards to a market opportunity and abusiness concept

Appropriateness of the business strategy Reasonableness of financing plans

Audience

Judges comprised of entrepreneurs, VCs and faculty


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Building an Elevator Pitch Step by Step

The best way to develop an elevator pitch is towalk through several steps to formulate cogentanswers to critical questions about your business

Once this has been completed, you can create anabstract that forms a template for delivering your

elevator pitch

We call this the nine step approach to building anelevator pitch abstract!


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Building an Elevator Pitch

Step 3: Describe the anticipated benefits What groups or individuals will benefit most from this product

or service?

How difficult (or easy) will it be for them to adopt this newproduct or service?

Consider the impediments for adoption from the perspective of a

customer and how they can be overcome How are initial users likely to benefit?

Incremental revenue or income generation

Cost savings or cost avoidance

Labor savings or improved individual performance E.g. reduced time to complete business processes, reduced number of people

needed to complete tasks, etc

Improved organizational performance Better quality

Faster time to market

Decreased business costs with customers, partners, suppliers


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Step 3: Describe the anticipated benefits How are initial users likely to benefit?

Improved access to relevant information and expertise New information created that when delivered results in better and faster decision-

making, increasing revenues and reducing costs

Access to committed and loyal community of customers, partnersand suppliers

Lower churn

Increased profitability per customer or per channel partner

Positive externalities - increased benefits to society Lower unemployment

Improved student scores

Improved quality of life

When will measurable benefits be delivered? Payback period

How much will stakeholders be willing to pay to receive thesebenefits and why?

How easy will it be to demonstrate potential benefits?


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Step 4: Describe the implementation plan What are the key activities the team must undertake?

What are the key decisions the team must make tolaunch the business?

Which activities should be done internally and whichshould come from outside suppliers and partners?

What relationships should we have with key partnersand suppliers?

What are the major deliverables and when will they bedelivered?

What is the timing on when each major deliverable willbe available to relevant stakeholders?

Who are the key people responsible and what are theirspecial skills and expertise?

How difficult/costly will it be to attract and build out theteam with this set of skills?


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Step 5: What resources are required? What does it cost to launch the business?

Think about major milestones Cost to develop the first product?

Cost to launch and market the first product?

Cost to sell the product?

Profitability of a customer over its entire lifetime

Sources of funding (in diminishing order of preference) Cash flow from business operations

Debt

Equity

Timing of sources of funding

Only raise what you need to minimize your ownership dilution sincemore money earlier on means VCs take more of the company

Should be based on achieving successive milestones


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Step 6: Describe the anticipated benefits forinvestors, partners and employees What is the estimated size of the market opportunity?

Top down method (e.g. starting with number of people inthe US, etc)

Bottoms up method (based on revenues of firms in existing

or closely analogous market What share of the market can you capture in the short,

medium and long terms?

Value of Intellectual Property (IP), including patents,licenses, copyrights, trademarks

What is the anticipated terminal value of the businessbased on steady state margins, growth and marketpenetration?

When do you anticipate turning a profit and returning valueto the investors?


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Step 7: Do you and the management team havethe support required to ensure success? Who are the key supporters for this business?

Why are they supporting it?

What type of support do they provide?

How will you market this project to internal and externalstakeholders?

What opposition may stand in the way and how do youpropose to overcome it?

Think about who would be hurt most by this business Through disintermediation, obsolescence, etc.


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Step 8: What are the risks and how will they bemanaged? Pricing risks could customers be willing or able to pay

less than you expected?

Market risks Why would the market be slower to grow than expected?

Why would your market share fall short or take longer toachieve than you expected?

Competitive risks Are there any other big companies that could enter the

market

How could your competitive advantages erode?

Execution risks what about your operations aredifficult to get right and could fail?

Government and regulatory risks could governmentintervention negatively impact your business?


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Stoogle a vertical search engine optimized for studentneeds Step 1: Describe the problem you wish to solve

Current horizontal search engines like Google do notdeliver adequate search results for university andgraduate students conducing research

What are the factors motivating you to launch the business?Horizontal search engines have made academicresearch easier but is still far from optimal

What is the key problem or opportunity this business willaddress? Improve by an order of magnitude academicresearch search results

What is the overall time frame within which the business willbe launched? Deliver first prototype within 3 months

Who else is doing something similar to what you plan to do (or

are doing)? Google, Facebook, small startup verticalsearch engines

Has anyone already achieved a dominant position in thismarket or with a similar product? No, the market is nascent


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Building an Elevator Pitch Abstract

Use the template below as a framework to helpnail down the elevator pitch abstract! Abstract Template: Our business {Name} will deliver {list key

deliverables} to {list key beneficiaries} to enable them to {list keybenefits}. The business is led by {list founder and key executives,investors and advisors} that have {list key backgrounds andqualifications}. The business {will launch/was launched} on {date} and

we {will begin/began} delivering {first product or service} on {date} andanticipate that the terminal value of the business will be {list anticipatedvalue}, which represents a {list return} to investors. The total cost toachieve this goal will be {total cost}, which includes the following key costcategories {list}. The key risks for the project are {list risks}. Theserisks will be managed by {list key approaches to managing each risk}.We anticipate raising capital from {list investor categories friends andfamily, angel investors, VCs, grants}


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NU Venture Challenge Timeline

Feb. 28

Apr. 13

Apr. 16

Apr. 21

May 12

Sign-up deadline

First Round deadline; business plan abstracts due

Semi-finalists announced

Semi-final Round - teams present 3-minute elevator pitch +

7 minutes Q&A and finalists announced at end of day

Final Round consisting of finalist teams giving a 15 minute

presentation + 15 minutes of Q&A & Gala


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NU Venture Challenge Timeline

Disclaimer This presentation is based on HBS Note 9-802-

222 Developing an Elevator Pitch for a NewVenture by Lynda M. Applegate and SusanSaltrick

Elevator Pitch Workshop 2007

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