Whether you’re pitching in front of potential investors or in a competition, you need to be able to succinctly discuss the most important information regarding your startup or business idea. Oftentimes, founders ramble and discuss things that aren’t helpful to the pitch. The key is: less is more.
Here’s what you should include in a five-minute presentation about your startup or business idea.
WHAT’S THE PROBLEM (1:00)
Start by describing the problem that your product or service solves. You can discuss pain points that the market faces or improvements to existing solutions. Essentially, you’re explaining why a person or organization needs or wants what you sell.
In your presentation, you can explain the problem using a real-life anecdote so that audience members can understand it or relate to it, even if the problem doesn’t affect them.
HOW BIG IS THE MARKET (0:30)
Conduct research to figure out what is the total addressable market, which refers to the total revenue that a business can earn in a specific market. This is important because while your business idea may solve a problem, the number of customers who would spend money for it may be too small and thus not worth your efforts.
WHAT’S YOUR COMPETITIVE ADVANTAGE (1:30)
What is/are the existing solution(s) to the problem you described, and who are the competitors that are providing them? In other words, absent of your startup, describe how customers are meeting their needs or wants now.
From there, you should describe the unique features of your solution and how they will provide better or more value to your target market. Perhaps your product or service is cheaper, higher quality, faster and/or more sustainable.
You also can use this section to describe your team. What experience and/or expertise will make your business successful?
WHO ARE YOUR CUSTOMERS (1:00)
After you’ve explained your solution, it’s time to talk about your target market. You may need to differentiate between buyer and end-user, and you may have several targets. Avoid saying “everyone,” “the general public” or any other target that would be considered too broad.
You also should mention some sales and marketing strategies (e.g., digital advertising) for reaching and acquiring customers. What inroads have you made and/or what upcoming opportunities do you have? Do you have any customer feedback so far (e.g., through a beta test or MVP)?
HOW WILL YOU MAKE MONEY (1:00)
Regardless if you plan on a for-profit business or non-profit organization, you need to explain how you will make money. Your revenue model could be ad-based, transactional (including donations), grant-based, channel-based or subscription-based. If possible, project your income over the next 2-3 years.
At the same time, include your startup costs for launching as well as your ongoing operational costs. From there, you can explain when you expect to achieve profitability.