Nail the elevator pitch 🔨 nail the deal

Retail rents are HIGHLY negotiable. On a scale where 1 is Taxes and 10 is Facebook Marketplace, I’d put retail rent at a solid 9. Since rent is one of the highest fixed costs for brick-and-mortar businesses, it’s worth the upfront investment to negotiate it down. You will absolutely have to spend some money to do this (brokers, lawyers, architects etc.) BUT this “one weird trick” is actually free, and invaluable.

I’m talking about preparing and practicing a killer “Elevator Pitch.” For those who spend elevator rides frantically ping-ponging their eyes around to avoid the catastrophe of making eye contact with a stranger, I’ll explain. An Elevator Pitch is a clear, confident and compelling description of your business that’s short enough that it could be delivered over an elevator ride.

When you’re shopping around for retail space, you can expect to be asked to describe your business at least once by every broker and landlord you meet. You’ll also be asked by every vendor you hire, and while it’s such a predictable query, more often than not, retailers look like a deer in headlights at this question. 😳

But not you, mighty retailer.

When to start working on your elevator pitch
We work on elevator pitches with Pedal Retailers before we tour spaces for the first time, and if you’re working with a broker, that’s the best time to start. If you’re not working with a broker (though we always recommend that you do), you want to nail down your elevator pitch before you make any calls to ask about available space. The negotiation starts at the very first conversation, and first impressions are powerful!

How to craft a killer pitch
If your business plan is finished, your executive summary is a great place to start, because all of the essential information is in there. You’ll want to put together a few sentences - ideally no more than four - that summarize the most important aspects of your business. Any one of those sentences may be jumping off points for much longer explanations - if you have more time than just an elevator trip, you can take any number of those paths.

Questions your pitch must address
Reactions to a start-up venture range from excitement to skepticism - get gatekeepers in your corner by clearly addressing the following questions:

What does your business do or sell?

What is your background, and why are you the person to open this business?

How will your business compete (particularly if you’re in a crowded retail category like foodservice)?

Who is your target customer and how does your real estate strategy connect to them?

These are the most fundamental attributes of your business plan - a good pitch will clearly cover the basics.

Adding pizazz
If you just jotted down the answers to those questions, you may be feeling like your pitch is a little… boring. Your pitch needs to clarify your business concept, but it also needs to be engaging and even memorable. So, once you’ve got the basics, you’ve got to add some personality without diluting the message or taking too much precious time. Here are a few angles to consider:

Is your business solving some relatable problem? A rhetorical question (i.e. “You know when you’re trying to do X but Y happens?”) can be a nice way to engage your listener.

Do you have an interesting origin story that can be condensed into a sentence or phrase?

If you’re already in business (including e-commerce), can you credentialize your business and/or cite existing demand for your expansion?

You absolutely do want to be likable and trustworthy, but the goal is to appear confident, capable and qualified, so be wary of saying things like “opening X business is my lifelong dream.” You can absolutely say that on your website, or down the road when you’re being interviewed by Guy Raz about your huge success, but when you’re first starting out, you don’t want to present as naïve. Remember, you need your landlord to not only like you, but to enter a business relationship with you where they have serious skin in the game.

Practice makes perfect
Once you’ve got your pitch written, memorize it and practice it. Seriously. Do it out loud in front of the mirror. Do it for your friends and family, and make sure that the message comes through clearly. Do a practice run before each meeting. You want it to roll right off the tongue so you can focus on delivering the pitch, and reading your audience so you can respond appropriately. Think of it this way - the elevator pitch may be the one aspect of a meeting that you can actually prepare in advance, so take advantage of the opportunity to set the tone for the meeting and the potential negotiation to come.

The value of a great elevator pitch
It’s hard to overstate the value of a strong first impression when you’re leasing a retail space, but to put a little specificity to the opportunity, a great elevator pitch sets you on the path to…

Get access to great real estate. Brokers and landlords screen who they are willing to even consider for a space. With a great elevator pitch, you can prevent getting shut down right out of the gate.

Negotiate lower rents for your business. Landlords are most successful when tenants are most successful, so if you can persuade a landlord that your business will be successful in the long term, you better position yourself for a lower rent, since the landlord won’t be saddled with the time and expense of re-leasing the space again in a few months.

Negotiate higher concessions like TI and free rent. If you can persuade a landlord that your business will elevate their whole property, maybe even increasing demand for apartments or office space upstairs, it makes more sense for them to offer you a more attractive deal.

Pedal Retailers have some of the best elevator pitches in the game - would you like to see some examples? Shoot me a note and I’d be happy to share.