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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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Elevator Pitch What is it?
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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Elevator Pitch What is it?
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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Building an Elevator Pitch
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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Building an Elevator Pitch
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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Building an Elevator Pitch
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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Building an Elevator Pitch
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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Building an Elevator Pitch
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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Building an Elevator Pitch
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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Building an Elevator Pitch
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