Completing your pitch in 60 seconds is no easy task — but sealing a deal can be even harder.
On Entrepreneur Elevator Pitch, our board of investors has all kinds of questions for contestants, digging into their costs, marketing strategies and sales traction (or lack thereof). On this show, you have to know your numbers — and be able to think fast — if you want to make it out with a life-changing deal.
What else do our investors look for? As Marc Randolph, co-founder of Netflix and an Elevator Pitch investor put it, "when you're making your pitch, I want you to tell it, not sell it. Sure, describe your product, but I'm not your customer — I'm an investor. I want to know that other people are going to like it. I want to know how that's going to make my investment profitable. And most importantly, I want to see that you have the chops to make your business work."
On Entrepreneur Elevator Pitch, our board of investors has all kinds of questions for contestants, digging into their costs, marketing strategies and sales traction (or lack thereof). On this show, you have to know your numbers — and be able to think fast — if you want to make it out with a life-changing deal.
What else do our investors look for? As Marc Randolph, co-founder of Netflix and an Elevator Pitch investor put it, "when you're making your pitch, I want you to tell it, not sell it. Sure, describe your product, but I'm not your customer — I'm an investor. I want to know that other people are going to like it. I want to know how that's going to make my investment profitable. And most importantly, I want to see that you have the chops to make your business work."
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NewsTranscript
00:00Today, entrepreneurs looking to uplift their lives must prove to our elite panel of investors
00:11that they have what it takes in 60 seconds or less.
00:17There's a requirement here.
00:18There's one thing you know, you have 60 seconds for the message that you should mail.
00:24This is Entrepreneur Elevator Pitch, presented by Amazon Business.
00:31Today, in the boardroom, Kim Perel, CEO of 100.co, Mark Randolph, co-founder and first
00:41CEO of Netflix, Dhani Jones, a former NFL player and serial entrepreneur.
00:55First up in the elevator, an entrepreneur who's building a new future in construction
00:59project finances.
01:02Hello, Khalid.
01:05Welcome to the elevator.
01:09Coming up, your pitch begins in three, two, one.
01:16Hi, I'm Khalid David, founder and CEO of TrackFlow.
01:20Have you ever done a kitchen or bathroom renovation?
01:22Let me guess, start at one price, end up another?
01:25But whether you're a DIYer, a home renovator, or building a tower in downtown Miami, project
01:30costs change, and it can make or break the success of a project.
01:34At TrackFlow, we created a mobile platform that allows contractors to track and put managed
01:40project costs in real time, saving them time and money.
01:44As the second least digitized industry, construction's set to spend $11 billion on software each
01:51year.
01:52At TrackFlow, we help contractors transact about $5 million a month in our platform,
01:57but we're here today to announce our latest project, an AI tool called Voice-to-Invoice.
02:03We allow any contractor, regardless of size, to simply speak and be able to determine costs.
02:08We're here asking for $250K on a $10 million note to bring our technology to a more diverse
02:15construction workforce.
02:16It was a great pitch.
02:17Great pitch.
02:18He basically nailed the pitch.
02:19Yeah, I kind of expected someone who had a business about tracking numbers would have
02:25his numbers in order.
02:26One of the things that's really interesting right now is like so many people are redoing
02:29their house.
02:30And it's always going over.
02:31He's right.
02:33Gotta stay on budget.
02:34Gotta stay on budget.
02:35It's a problem and never on budget.
02:36But is this a project for the contractor or for the consumer?
02:38All I know is I heard the buzzword of artificial intelligence.
02:42Well, I heard the buzzword of money.
02:45Let's put it to a vote.
02:46Let's put it to a vote.
02:47Attention, Khalid.
02:57Your pitch has been approved.
03:01Hey!
03:02What's up, baby?
03:05Khalid.
03:06Come on in.
03:09Tell us all about your business.
03:12Let's go.
03:13How you guys doing, man?
03:16So TrackFlow started as solving a problem around change orders.
03:20Then what we discovered, there's a whole market of construction companies who don't use technology.
03:26So we believe that there's a diverse workforce that's completely on top.
03:30Are you a contractor?
03:31I grew up in the construction industry, came from a family of carpenters, was formerly
03:35trained as a civil engineer, ran a subcontracting company with my dad and uncle.
03:38And then I ended up working at a major construction firm in New York and was part of their innovation
03:43team solving this same problem.
03:46The lead developer on that team became my co-founder, had a VP at that firm, write my
03:51letter of recommendation to MIT, left, went to MIT, and TrackFlow was born.
03:55I got to see this.
03:56You got to see it?
03:57Okay.
03:58So they start with the AI.
03:59They'll describe work on the fifth floor.
04:02They'll describe the task.
04:04I had four men and a carpenter doing six hours of work.
04:08And then lastly, I used five boards and one box of screws.
04:12And from there, we pull in the pre-approved labor costs associated with this.
04:18And then with one more click, then we use that embedded data to actually show them in
04:23real time what the costs were for that day.
04:28And that's our latest tool.
04:29How many contractors are currently using this?
04:32We have up to, let's say, 70 contractors on the platform, 25 paying customers, because
04:38one contractor can use it and they give the other contractor free versions.
04:42To be on the platform, does the contractor have to pay a regular fee?
04:45Yeah.
04:46So we charge a monthly subscription cost.
04:49And how much is that?
04:50About average annual contract for a small contract is somewhere around $6,000 or $7,000
04:55annually.
04:56And then for larger contractors, we're able to charge somewhere between $12,000 to $15,000
04:59annually.
05:00And these 25 contractors on the platform are all paying?
05:04So yeah, most of them are paying.
05:07Last year, we did about $150,000 ARR, we're on track to do about $250,000 this year.
05:13$150,000 this year, why isn't it $1.5 million next year?
05:16Well, because construction can be so regional, we started really selling in that New York
05:23market.
05:24Once we finally got the technology right, we didn't really have the capital to go out
05:28and market and promote it in a real way.
05:30But construction is regional, SaaS is not regional.
05:33Yeah.
05:34Everything you are saying sounds amazing, but I can't figure out what's stopping or
05:43stunting your growth.
05:44And I don't have the relationships that you need in order to be successful.
05:50And I think unfortunately, I'm going to pass.
05:52Oh, God.
05:53I'm just still confused how you haven't grown fast enough.
05:59What you're saying sounds interesting, and the way that you've approached it is interesting,
06:04but I'm trying to not have enough growth at this current state.
06:07It's hard for me, so I'm going to have to pass.
06:10I'm not confused as to why he's not growing faster.
06:13He doesn't know how to grow faster.
06:16You have to figure out something repeatable, scalable, low cost, viral, online, international.
06:21Yeah.
06:22I think I can help.
06:25Yes.
06:26But usually my motto is, you either get my money or you get my time.
06:32If I put my money in, you don't know what to do with it, so you're going to need my
06:37time.
06:38Mm-hmm.
06:39And if I'm going to do that, I am not going to do it for $250,000 on a $10,000,000 note.
06:43Okay.
06:44If I was going to work with you, I would do $250,000, but it's going to be on a $5,000,000
06:50cap, or you're going to figure out some other clever way to make that happen.
06:54The problem is I'm not going to put the money in unless I can help you grow and scale and
07:00go from $150,000 to a $1.5 million next year.
07:04Mm-hmm.
07:05Yeah.
07:06I like your offer.
07:07Okay.
07:08Let me ... I guess-
07:09You sound a little conflicted.
07:10No, no.
07:11I'm not conflicted.
07:12Listen, I'm with it.
07:13I think that ...
07:14Khalid.
07:15Yeah.
07:16I'm with it.
07:17I'm with it.
07:18I'm with it.
07:19I'm with it.
07:20I'm with it.
07:21I'm with it.
07:22I'm with it.
07:23I'm with it.
07:24I'm with it.
07:25I'm with it.
07:26I'm with it.
07:27I'm with it.
07:28I'm with it.
07:30You know what, Khalid?
07:31Yes.
07:32He's offered you some money.
07:33Yes.
07:34Yes.
07:35He's offered you his advisory.
07:36Yes.
07:37Just say yes.
07:38Yes.
07:39Yes.
07:40You got the deal.
07:41Yes.
07:42There you go.
07:43Thank you so much, man.
07:44I appreciate you guys.
07:45Hey, listen, we did it, baby.
07:46We did it, man.
07:47You can't stop the hustle, man.
07:48You can't stop it.
07:49Entrepreneur Elevator Pitch is presented by Amazon Business.
07:56for every organization at every stage of growth.
08:01Media, enterprise, and government websites worldwide trust WordPress VIP to run, grow,
08:10and secure their websites.
08:12When you're making a pitch, I want you to tell it, not sell it.
08:18Sure, describe your product, but I'm not your customer.
08:21I'm an investor.
08:22I want to know that other people are going to like it.
08:24I want to know how that's going to make my investment profitable.
08:27And most importantly, I'm looking to see that you have the chops to make your business work.
08:39Next up, an entrepreneur who's taking snacks back to their roots with her Ancient Grain
08:45Chocolate Treats.
08:47Hello, Sina.
08:52Welcome to the elevator.
08:55Going up.
08:57Your pitch begins in 3, 2, 1.
09:02Hello, my name is Sina and I'm the owner of Buckley Foods.
09:06Buckley means joy in Nahuatl, the language of the Aztecs, and it's a snack inspired in
09:11the Mexican alegrías that also mean joy in Spanish.
09:14I wanted to recreate my childhood snack in the U.S. with the highest quality all-natural
09:19organic ingredients that include puffed amaranth, quinoa, millet, chocolates, and whole dried
09:24fruits and nuts.
09:25They are all gluten-free organic with vegan and soy-free options.
09:29The packaging is inspired in the fabrics and textiles from Oaxaca.
09:33They are geared towards the culturally curious that cares about natural products and read
09:38food labels.
09:39They like to buy organic products with no additives in their foods and simple ingredients.
09:44We are a woman and minority-owned business certified, and we have a team of seven Latinas
09:51that create 3,000 pieces in one day.
09:53We are scaling our production and making our product into a bite-sized format because we
09:58have a big retail launch with 400 stores.
10:02Listen, there is a requirement here.
10:04There's one thing you know, you have 60 seconds for the message.
10:08That you should nail.
10:09There's a lot of information she left out.
10:11Right.
10:12Yes.
10:13What's the valuation?
10:14How much does she sell for?
10:15What's the sales?
10:16How much has she sold?
10:17There's a lot of questions.
10:18She has some great packaging, and she has distribution in 400 stores?
10:20No, she has distribution that she might get in 400 stores.
10:24So there's a lot of mights and maybes and possibilities.
10:27All right, well, let's cut the questions.
10:28Cut the questions.
10:29Let's vote.
10:30Attention, Sina.
10:40Your pitch has been denied.
10:44Oh, my God.
10:48I feel like the investors missed out on an opportunity.
10:51Maybe it wasn't my delivery.
10:52I just, I had a time, but I guess I was slower in the delivery today, and I could not say
10:58my ask at the end.
11:00I voted down.
11:01How about you?
11:02I voted up.
11:03Oh, wait.
11:04It's called elevator, Mr. Honey.
11:05I understand.
11:06I wanted to give her a chance.
11:07A chance.
11:08It's chocolate, okay?
11:09It's chocolate.
11:10I want some chocolate.
11:11Do you know what it takes to start a business?
11:15Check out Entrepreneur's newest book for insights on how to create, grow, and scale.
11:23CAC stands for A. Customer Access Control, B. Customer Acquisition Cost, C. Customer
11:33Account Check.
11:35Correct answer, B. Customer Acquisition Cost.
11:46Next in the elevator, an entrepreneur who hopes to keep curious little hands safe with
11:51their revolutionary safety outlet cover design.
11:56Hello, Jasmine.
12:00Welcome to the elevator.
12:03Going up.
12:04Your pitch begins in three, two, one.
12:09Hi, I'm Jasmine, CEO of ParentCo.
12:13While childproofing my home, I experienced firsthand the problem that come with these
12:17traditional outlet plugs you see here.
12:19I will forget to put them back in.
12:21They got lost.
12:22I stepped on them.
12:23Ouch.
12:24And worse, they were choke hazards.
12:25They still aren't a standard use today and have been for over 30 years.
12:29Why?
12:30It's time for innovation.
12:31We have done just that with our outlet cover.
12:34It's patented, made in America, installed in under 30 seconds, and the plug pivot in
12:38and out.
12:39We are seeking $200,000 on a $4 million safe note.
12:43Lack of capital has stunted our growth tremendously.
12:46In 2022, Walmart wanted our products in 100 stores on end caps.
12:51We weren't able to capitalize, but we are proud to say that we are currently working
12:55on fulfilling our first PO with them and impending one with those.
12:59Our profit margins are great, over 70% direct to consumer and over 50% wholesale.
13:04Let's make a deal.
13:05Let's innovate and have my covers become the new standard for parents.
13:11That was refreshing.
13:12Yeah, she did a great pitch.
13:14And when you say Walmart, that's a big opportunity.
13:18I think she said she had Walmart before, but she wasn't able to capitalize on it.
13:22So we'll have to see where it really is.
13:25Yeah, it's also, I mean, that product, how big can that really be?
13:28I don't know.
13:29It seemed innovative, and I agree.
13:31Those little things you put in, they've been the same way for 30 years.
13:34Let's see whether we agree that she should tell us more.
13:37Let's do it.
13:38Put to a vote.
13:45Attention, Jasmine.
13:48Your pitch has been approved.
13:59Jasmine.
14:00Hello.
14:01Welcome to the boardroom.
14:02Can I hand you guys something?
14:04Yeah.
14:05Well, you are jumping right in.
14:07I love it.
14:08I'm trying not to be emotional.
14:09Don't waste time.
14:10So let's try to do this.
14:12There you go.
14:13Tell us a little bit about your product.
14:15So it is a outlet cover that is meant to solve that 30-year issue that I had myself 20 years ago.
14:22I'm going to jump right into a detail which intrigued me in your pitch.
14:26Walmart.
14:27Are you still in Walmart?
14:28It was a test.
14:29How did it go?
14:30So, unfortunately, in 2022, they wanted me in 100 stores on the end caps.
14:35But lack of capital, I wasn't able to get it done, and I kept the relationship.
14:40And right now, we are currently working on fulfilling our first purchase order with them.
14:44So they've agreed to put it into 100 stores?
14:46So, because I missed that opportunity, now it's online.
14:49So they're going to start me off small.
14:51I see.
14:52Okay.
14:53I noticed when you first came in, you were a little bit emotional.
14:54Yeah.
14:55How are you feeling?
14:57I'm better now that I'm in here.
14:59This has just been a 20-year journey.
15:02Wait, 20 years?
15:0320-year journey.
15:04What have you been doing for 20 years?
15:05I came up with the idea in 03.
15:07You did?
15:08I did.
15:09So I didn't have the capital in 03, unfortunately.
15:12I tried again in 2017 after saving up, but I fell for one of those, oh, we help inventors.
15:18So I lost all my money then.
15:20Oh, my gosh.
15:21Have you made any sales yet?
15:23No.
15:24And so in 2022, I spent that year redesigning it, working on product testing.
15:30What about patents?
15:31I have a patent.
15:32What is your projected revenue for 2025?
15:36So I put it like this, right?
15:37Walmart has over 3,500 stores.
15:39If I just get in half of those stores and they just order from me twice, just 80 units,
15:44that's over $800,000 next year.
15:46And I have a pending one with Lowe's.
15:47I got interest with Bye Bye Baby.
15:49I love what you are creating.
15:51I love that you're bringing your vision to life after 20 years, so congratulations.
15:57For me, it's too early because you don't have any sales.
16:02I'd like to see a little bit more traction.
16:05So for that reason, I'm unfortunately going to pass.
16:10I love your product.
16:11And I think that being an entrepreneur, a sole entrepreneur, is so hard.
16:14And being able to raise capital is so difficult.
16:17But it's the thing that keeps you going over time.
16:22Unfortunately for me, at this time with your business, I'm going to have to pass.
16:28I'm wavering here, but I'm not wavering between whether I'm going to invest.
16:31I'm not going to invest.
16:32I'm wavering whether to praise you for having spent 20 years persevering
16:39and chastising you for, my God, get going, sell something.
16:44Back to capital.
16:46It's not capital.
16:48I'm sorry to give you a little bit of tough love,
16:50but the thing that all of us want to see is traction.
16:53Do people actually love this thing and give you money for it?
16:58Figure out some way to get people to start buying it.
17:02It's magic when all of a sudden you can tell people,
17:05here's what my sales numbers look like.
17:07Get over that and you will see unbelievable success.
17:10Thank you so much.
17:11Appreciate you guys.
17:12Good luck.
17:14There's been a long list of things that I always coach entrepreneurs not to do.
17:19Don't waste time on the patent.
17:21You spent money and time on something.
17:24But that's what people are told so many times.
17:26Protect yourself, protect yourself, protect yourself.
17:28And I think the most important thing is you got to go sell something.
17:31Yes.
17:32If the product works and she can sell something,
17:34she gets some traction, maybe she'll be back.
17:36Absolutely.
17:37And I hope so.
17:38Well, guys, maybe there's something else we could do for her.
17:41Although I didn't get a deal,
17:43this is still a success because it really gave me the validation I need.
17:47Attention, Jasmine.
17:49Your presence has been requested back in the boardroom.
17:52Oh, my goodness.
17:53Welcome back, Jasmine.
17:54Hello.
17:55We were so impressed with your pitch and your passion
18:00and most importantly, your perseverance.
18:03Although you did not get an investment today,
18:05on behalf of Amazon,
18:07we want to gift you $10,000 cash
18:11to support you and the growth of your business.
18:14Appreciate that.
18:15Thank you guys so much.
18:16Sorry to get emotional.
18:17We believe in you.
18:19Thank you so much.
18:20Good luck, Jasmine.
18:21Appreciate it.
18:23Good luck, Jasmine.
18:24I am feeling very emotional,
18:25but I'm glad I came, glad I can be a part of this,
18:28glad for the feedback.
18:29Can't wait to get back home and just take it all in
18:32and do great as they believe in me,
18:35that I can do great.
18:36And so that's what I'm looking forward to doing.
18:41Going up next time on Entrepreneur Elevator Pitch.
18:45I'd rather not be here.
18:46On Entrepreneur Elevator Pitch.
18:48I'd rather buy a pizza than diamonds.
18:50You were leading with your stomach.