Last week I was talking to an entrepreneur at Venture Atlanta and I asked the casual question “What does your startup do?” With that simple question I received a three minute response that was confusing and forced me to ask simple, clarifying questions in an attempt to get a basic understanding of the business.
Entrepreneurs should craft a 100 word response, much like an elevator pitch, so that everyone in the company can provide a consistent answer to the question “what does your startup do?” Here are some items to keep in mind:
- Different audiences, like ones that are more technical, do want more information, but let them ask for it after you’ve provided the one minute answer to the question
- Specifically include if you offer a product or service as well as the most common buyers and industries
- Provide a memorable hook or anecdote, if possible
- Incorporate social proof into the message (e.g. we have 100 paying customers)
The next time you hear the question “What does your startup do?” I hope you provide a concise, memorable answer that sticks with the listener.
What else? What other tips do you have when explaining what a startup does?
David Cummings on Startups 
Spot on. From my own experiences, the “babbling brook” answers would come out when I wasn’t confident because of some “newness” factor (new content, new networking scenario, new opportunity scale). Only after bumbling through enough scenarios would the “newness” fade and replace with a familiar pattern.
I don’t know this particular person’s experience level with being an entrepreneur, but I do wonder if we can rush the new player to doing everything the right way from the beginning, even if we tell them what to do. When would you say you hit your “stride” as an entrepreneur?
Great simple daily posts, been reading them for a good while now.