Most advisors know what an elevator speech is - it's a ten second distillation of what you do that will intrigue a prospect and make them want to know more.

But few would be prepared for a scenario like this one:

While waiting for an elevator, you bump into a university classmate you were close to in school but haven't seen in five years. He or she's gone on to be a high profile business owner in your community - and you congratulate them on their success.

Just as you finish, an elevator arrives, you both step in ... and your school friend says .... "So what are you up to these days?"

If this person is someone you might potentially want to work with, you now have ten seconds (at the very most) to answer that question in a way that's going to open the door to a further conversation. 

The five elements of an effective elevator speech

Good elevator speeches don't come off as sales pitches -  your goal isn't to sell, rather it's to provoke interest on a prospect's part that may lead to a further conversation.

Here are five elements of an effective elevator speech:

1. First and foremost, it's short.
2. A good elevator speech sets you apart and differentiates you.
3. It tends to be specific rather than general - the more concrete the better.
4. A good elevator speech isn't about you but rather focuses on the problems you address, using verbs like help, teach and guide.
5. And a good elevator speech creates a bit of intrigue and curiosity. In the perfect world, the person you're talking to says "How do you do that?"

A formula for an elevator speech

In a recent article about elevator speeches, American consultant Matt Anderson recommended a three part format.

Your first words are: "Well, you know how..."

For example: "Well, you know how a lot of people run their own business because they're really good at what they do, but that most businesses fail within five years?"

The second part begins: "Well, what I do is..."

"Well, what I do is design strategies to help business owners maximize cash flow and minimize taxes."

The final component starts with: "Because..."

"Because what kills most businesses is lack of cash flow."

Five categories of elevator speeches

A couple of years ago, U.S. advisor website surveyed advisors about the elevator speeches they used.

And the answers they came up with fell into five general categories - a team based approach, analogies, q and a approaches, problem solvers and what Horsemouth called straight shooters. The following section is borrowed from that article.

Team based approaches

Here are two team based approaches:

"I lead a team that specializes in building and preserving wealth."

"My team develops financial plans for successful business owners and their families that ensure they have the means to realize their dreams. Our success as advisors is seeing our clients succeed."

Using analogies

When using analogies, advisors relate their value to some vivid image the listener can picture immediately.

"You know how a symphony needs a conductor or it's all just noise? I'm like a personal financial conductor for successful families in the community."

"I'm like an old-fashioned general family doctor. I monitor clients financial health and well-being. When there's a problem, I either treat it myself or bring in an expert from my team who can."

"I am my clients' personal chief financial officer. Because I have a CA and a lawyer on my team, I am able to manage my wealthy clients' tax, legal, and financial strategies so we can work together to protect their financial futures."

The q and a approach

In this style of statement, advisors ask a rhetorical question that most everyone has thought about or faced themselves.

Then they show how their work provides an answer to that question.

Note that these statements are most effective when rehearsed well enough so that they sound completely natural and off the cuff.

"You know how successful people don't always have the time to manage their wealth? Well, I help them manage their assets so they have the time to enjoy the things they like to do."                                                                                                                                         

"You know how every building needs a strong foundation? We consider ourselves financial architects that develop the foundations on which our clients' dreams are built."

"You know how a lot of retired people in today's economy need a second job to make ends meet, Well, what I do is work with individuals and families to help ensure they only have to retire once."

The problem solver approach

In this approach, advisors position themselves as addressing a commonly held fear pitfall for their target niche.

"We work with senior corporate executives who trust us to provide asset protection and wealth-preservation ideas to avoid common and costly financial mistakes."

"Unfortunately, wealthy families often make costly mistakes in their estate planning. I evaluate my clients' financial situations and make sure they're implementing the best strategies to protect their wealth for future generations."

"We help clients transition into retirement. We cover all of the aspects of their financial affairs and we cover the steps that they should take to achieve the goal of a safe and secure retirement."

The straight shooter

The last category is what Horsesmouth calls straight shooters. These are short, direct statements that hone in on the needs a particular clientele and say how they meet that need.

These statements are deceptively simple: they're easy to deliver but can take quite a while to develop.

"What I do is reduce stress from retirement money matters. My team and I design retirement strategies along with sound money management so my clients can retire and stay retired."

"My advisory practice is focused on helping wealthy families create and distribute their wealth efficiently."

"I help socially and environmentally conscious investors vote with their money. Our clients come to us both to realize their own financial security and to contribute to a more just and sustainable world."

Having a follow up to your elevator speech

Getting an elevator speech down can take some time, but investing the effort to get this right can pay off for advisors.

Beyond having your elevator speech honed, in the perfect world you'd have a follow up close at hand.

Let's suppose your university friend says "That sounds like interesting work."

You could respond by saying

"It is ... I enjoy it a lot.

"You know, earlier this month I emailed my clients an article from the New York Times on the challenges of having an estate planning conversation with their families. That article received a great response. If you like, I'd be happy to send you a copy."

Note that this is not about mounting a sales pitch ... but it is about giving someone you run into a quick sense of what you do and opening the door to the possibility of a further conversation down the road."

There are no guarantees in this business, but a well crafted elevator speech and an effective follow up strategy can increase the odds of turning casual encounters into prospective clients.