Subscribe to Entrepreneur for $5
Subscribe

Entrepreneur Elevator Pitch Season 4 Episode 2: 'How Does She Make Money If It's All Free?'

This episode features a lot of failed pitches, but there are lessons in every failure.

By

Entrepreneur Elevator Pitch invites ambitious entrepreneurs to step into the Entrepreneur Elevator, then gives them 60 seconds to pique the judges’ interest. It’s a high-pressure, fast-paced environment in which startup founders need to race the clock while maintaining their composure to make a clear, deliberate pitch that covers at least three essential components:

  1. Defining the company
  2. Making the request
  3. Specifying what the investment money will be used for

The investors watch the pitch through a video livestream while the elevator ascends to the boardroom floor. Once the 60 seconds are up, the group votes on whether to open the doors or send the founder back down and pass on investing.

Related: Entrepreneur Elevator Pitch Season 4 Episode 1: 'You Attacked Me!'

This episode proves just how difficult it can be to nail your pitch and impress potential investors. Five founders and entrepreneurs appear on the show, and all leave without securing the investments they came for.

However, their failures provide great lessons that you can use when it's your turn to pitch. For example, the first founder on this episode has what the judges call "a crazy valuation" of her business, which leads her to ask much more of the judges than they are willing to offer. When you consider your own company, try to be as reasonable and objective as you can when trying to determine how much it might be worth. Even if you think your idea could become a billion-dollar business some day, you need to understand the risks that investors have to take and be willing to work with them.

You also need to differentiate your business within your industry. If you can't explain why you're the only one who can offer what you have, and why you can disrupt an established marketplace, then you can't expect investors to bet on you against the field.

Perhaps most importantly, you need to prove how an investor can expect to get a return on investment. It's one thing to have a great idea, but it's something else entirely to run a business that generates profit. Prove that you know the difference and you'll be well on your way.

To learn more great lessons about refining your pitch, click play.

Entrepreneur Elevator Pitch in partnership with Sports 1 Marketing streams Wednesdays on entrepreneur.com. Follow Entrepreneur Elevator Pitch on Facebook, YouTube and IGTV.

Latest

How This Pregnancy Nurse Is Bringing Prenatal Education to Your Couch

A registered nurse and the founder of the Online Prenatal Class for Couples shares her advice for expecting parents.

The Co-Founder of a Diversity Recruitment Platform Shares How Her Company Is Helping Underrepresented, High-Quality Employees Get Hired

The CEO and co-founder of Joonko shares how her platform is helping companies automatically source underrepresented, high-quality employees and her tips for executives trying to improve their D&I efforts.

André Vener of Dog Haus on Effective Branding Strategy

Interview with Dog Haus partner and co-founder André Vener about launching successful modern restaurant brands, thinking outside the box, franchising, and scaling with ghost kitchens.

Top 3 Little-Known Productivity Mistakes

Are you struggling to stay on task? Well these three little-known mistakes might be tanking your productivity without you even knowing.

How One Startup Is Trying to Revolutionize the Low-Code/No-Code Industry

The CEO and co-founder of Zenity shares how his company is dedicated to governance and security for low-code/no-code applications.

4 Things to Do When You're in a Negotiation

The executive director and CEO of WIN Summit shares her advice for entrepreneurs looking to elevate their negotiation skills.

Matt Horn on Finding Purpose in Family and Flames

In-depth interview with CEO, pitmaster, and James Beard Award Nominee Matt Horn about growing his global food brand with social media, operating multiple restaurant concepts, and why he decided to "burn the boats."

This Entrepreneur Believes the 9-to-5 Work Week Is Dead. So She Created a Platform That Matches Talent With Project-Based Work.

The founder of NuuWork shares how her company will help people navigate the future of project-based employment.

How This Company Is Helping Ecommerce Brands Scale and Grow

The co-founder of 8fig shares how his platform is helping online sellers plan and execute their growth around their supply-chain needs.

Eitan Bernath on Becoming a Teenage Food Entrepreneur and Social Media Star

In-depth interview with cookbook author, food personality, and content creator Eitan Bernath about starting an entertainment career as a child, teaming up with Drew Barrymore, and building an inspirational business empire before his 20th birthday.

Ask Marc: Netflix Co-Founder Marc Randolph on Facing Challenges, Bringing on Co-Founders and Growth

In this episode of our new series 'Ask Marc,' the serial entrepreneur and mentor offers advice on how to get started.

3 Science-Backed Ways to Break Bad Habits

Become powerfully productive with these three patterns.

Meet the Co-Founders Making Conscious Shopping Easier

Goodbuy's Cara Oppenheimer and Cary Telander Fortin share how their browser extension helps consumers buy products with both their wallets and values front of mind.

Nina Manchev of Forte Tapas on Engaging Customers with Social Video

Interview with Forte Tapas owner and entrepreneur Nina Manchev about connecting with social media, learning to be confident on video, and appearing on Diners, Drive-ins, and Dives.

This CEO Believes We Need More Women In Crypto

Jaime Leverton, head of NASDAQ-listed Hut 8 Mining Corp., talks the future of digital currency with 'Entrepreneur.'

Discover Entrepreneur Series

Whether you need advice on how to get your business off the ground or you’re just looking for inspiration, our video series have something for everyone. Browse our library below to find a series that speaks to you and your interests.