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Two things that have helped me answer this question:

1. Smile. It's amazing how many people have a half or full frown when they answer this question. Keeping a positive expression on your face helps send the message that 1) you're interested in your work, 2) you don't begrudge the asker for her question. The result will be less pressure on both you and the asker, because you eliminate the assumption that an inconvenient conversation is about to happen.

2. Be direct. If you're smiling, it comes across as charming. I might ask, "How much time have you got?" or "How much would you like to know?" Neither question is a masterstroke (and some of you might even be thinking the questions are lame), but with the right attitude, you'll be entering a warm conversation where neither party is unprepared. I usually begin my explanation with a brief summary of my product's most interesting user story.

One additional note: If you work at a company with a good deal of access/transparency, ask your CEO or Founder how they answer when people ask them what their company is about. They get asked this question more than anyone, and they'll have several good options to share with you. It will help you model your own response.




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