I've seen it time and time again. You're at a networking meeting. People introduce themselves. You turn to your partner and say, "I still don't understand what he does."
If you can't describe what you do and the value you provide, you'll forfeit funding, business partners, and new clients.
In a study by the University of Maryland's business school, they concluded that the business plan will not do much for attracting interest from venture capitalists. The reason is that they won't read all that documentation.
One venture capitalist said he'd rather hear the evidence in PowerPoint slides or in somebody's presentation.
Investors don't want to read a 50 page plan. They will read an "elevator pitch" executive summary. If that's well developed and well delivered they'll continue to read.
Mr. Goldfarb, from the University of Maryland business school, agreed that entrepreneurs should write a "150 word elevator pitch and to practice with anybody who will listen.
When I work with business clients, the first thing we do is to set a clear objective.
For example, is the outcome to be invited to a second stage meeting?
The second step is to profile the audience.
The third step is to write a clear elevator pitch or summary of the presentation.
Only after that elevator speech is clear, concise, and focused, can we begin to pare down the presentation and deliver a compelling case.