Being able to confidently and clearly explain the distinction between your problem, solution, and product is a significant milestone for any founder running a startup.
This becomes even more crucial when you have the opportunity to communicate with investors, as it allows them to quickly grasp your business and assess the potential opportunity.
Top Tip: Always describe the problem and solution before you start talking about the product. Investors don’t really care about your current product!
This is the core issue that you are trying to solve. It helps to make the problem as big as possible while at the same time simplifying how you explain it. Think about how you can make it as emotional as possible and into a universal truth anyone could understand and agree with.
Your solution should be an abstract idea on how you are looking to solve the problem. Importantly you are not trying to describe the current product you are building, but instead an approach to solving the problem that will be applicable to all the products you are looking to build.
A good example of this is Space X’s solution is to ‘build a reusable launch platform’; not ‘build a reusable rocket’. The former, wider wording gives them flexibility to look at other products like space elevators, balloons, slingshots and other products that could act as a platform.
This is the moment to showcase the product you are currently building. Smart investors understand that your current product is, at best, a minimum viable product (MVP). While they may be intrigued by the traction it has gained, they are going to be more interested in hearing about your plans to evolve it and what future products will look like.
Top Tip: Being able to explain the Product, Solution and Product, in 30seconds along with a description of your team and what your are asking for becomes the perfect structure for a successful startup elevator pitch.