A pitch deck is considered the prime element of your fundraising tool kit when it comes to enhancing the money for your business. A Pitch deck makes the possible investors excited about your creative thoughts and indulges them in the dialogue about your business, which probably leads them to investment.
In this article, you will learn the formula for what you can involve in your own pitch deck.
What do you understand about the pitch deck?
A slide deck or start-up deck is the other name for a pitch deck known as a presentation that supplies a small but informative brief about your business. It covers all the major points of your business strategy, the high-level financial projections, the products and services you provide, and the funding requirements. Your pitch deck would work smoothly on itself as a visual document, however, it will mainly be utilised as a tool that explains the story of your company.
On which motive does a pitch deck work?
This may be found unreasonable however the aim of your pitch deck isn’t just to increase money. You might be surprised but the real intention behind your pitch deck is to move to the next meeting. You need to keep in mind that the Pitch deck and pitch presentation are likely some of the first things that an investor will look forward to understanding more about your organization. And as you know investments are often made after the first meeting, so your aim is always to ignite interest in your firm. You wish investors to ask you for more after they hear your pitch and not just show you outside.
What should you require to include in your pitch deck?
There are several types of business and each business is different but here, we are providing you with the format which works for many businesses and is probably starting to interest potential investors.
Now let’s get understand the 11 insights which are crucial in developing your deck –
Vision and value proposition – This is an instant and brief description of your business where you provide value to your costumes. It’s very normal for tech companies to represent their value proposition in differentiation from other companies that are famous. This could work although you need to be attentive to make the assurity of your comparison which makes sense and so you aren’t using just a high profile organisation such as Uber to showcase the growth potential. You should have a similar business model to the organisation you are referencing.
The issue – In case you are not cracking some issues in the world, then you might meet with some difficulties in your business. Therefore, talk about the trouble you are solving and who has the issue. You can also talk, like what are the recent solutions in the market, however, don’t spare much time on the competitive landscape.
Try and tell a similar story once you are defining the problem. Here, as more as you can make the problem authentic, the way more investors will get your business and your aims.
Target market and opportunity – In this segment try to explore who your potential customer is and how many of them there are. And also, What is the overall market size and how do you keep your organisation in the market? If you would find the data, their investors will want to know how much people or businesses recently spent in the market in order to get a sense of the overall size of the market. This is how you will explain the story and the scope and scale of the problem you are decoding.
If you could understand your business then, you’ll categorise your market into sections that you will address with various kinds of marketing and maybe multiple product offerings.
The solution – Eventually, you are plunged to explain your products and services. Describe how customers utilize your product and how it manages the issues.
You’ll be enticed to shift this line nearer to the initial of your pitch deck, however, try and defy the lure. This could be classic storytelling where you create the problem and later explain how worst it is for the people. Afterwards, your product and services will come to the rescue and fix the problem.
There are many entrepreneurs who are attentive toward products regardless they are required to be concentrated on their customers and the problems which they face. Therefore, try to put your pitch deck concentrated on this format, and then you’ll get a better story to tell. Meanwhile, try to put some pictures and stories while explaining your solution.
Revenue model or business model – Uptil now you’ve described products and services, now you need to explain to them how it makes money. Such as what did they charge and who expends the bills? (In some businesses’ contents sites such as advertisers pays the bills regardless of users, so it is important to get out of the details here –
You could also relate to the competitive landscape here, and can explain your pricing fits into the massive market.
Transaction and validation/roadmap – While utilizing your product, if you have sales or early adopters then you can explain here. Investors really wanted to go through your business model as it really lowers risk. so, if there is any proof where you have shown that your solutions work to solve the issue, it is very powerful.
Here, you can also interact with your customers about the major goals you have obtained and also the next big steps which you’re planning or taking.
Marketing and sales strategy – How do you make plans after getting the attention of customers and how will the procedure of sales look alike? In this section, you can tell them about your sales and marketing plan. You will desire to explain the prime strategy that you aimed to utilise to get your product in front of future customers.
For startups, finding and winning your target customers is probably the biggest challenge. Therefore, it is necessary to indicate that you have a strong command of how you will reach your target market and what kind of sales channels you are planning to use.
In case, your sales process and marketing are variant from your competitors, then it is necessary to highlight them here.
Team – How did you and your team be the correct people in order to grow this organisation? What makes you different from others? Give a sneak peek about the team members and their successes at other firms, and also the prime expertise that they bring to the table.
Even though, if you still don’t have a full team, find out the key positions that you apparently are required to fill and why those positions are important in terms of organisational growth.
Financials – When the investors are supposed to see your financials; income statement ( which is also known as profit and loss statement), sales forecast, and cash flow forecast for up to 3 years.
However, in your pitch deck, you should not have depth spreadsheets that will be tough to read and ingest in a presentation format. Bound yourself to charts that represent sales, total expenditure, total customers, and benefits.
You are required to discuss the basic thoughts that you’ve made to come at your sales mark, and also what your prime costs drivers are. Investors are able to view ‘hokey stick’ projections every time and therefore, mentally be deducting your projections in half. If you can describe your transition based on traction you have been or compared to the same organisation in a related organisation, that could be very helpful.
Competition – There are almost different kinds of businesses that have one or another form of competition. Regardless, you are enabling a totally fresh market, your latent customers are utilising possible solutions to solve their concerns today.
Explain how you yourself adjust to the competitive landscape and how you’re unique from competitors and choices that are today in the market. What are the prime benefits you do over the competition or is having some ‘secret sauce’ that you have and others don’t?
The main reason is to explain how you are variant from the other players across the market and why customers opt for you.
Investment and use of funds – Ultimately, this is the time to basically ask for the money. This is the reason you’re doing a pitch deck. As you know, a pitch deck is basically not all about getting financed. It is yet true however the potential investors do require to know how much money and how much capital you are looking for.
And the main concern is you are required to be able to brief why you require the money you are looking for and how you plan to execute the money. Investors are eager to know how their capital is being utilised and how it is going to assist you while achieving the goals you are fixing out of your business.
If you thus far have some investors on board, now is when you will be talking about that other investor also why they select to invest.
Other slides you might like to involve in your pitch deck
Sometimes, you want to keep your pitch deck short and simple, whereas sometimes it does not look worth it so you want to include more extra slides that help you to explain better about your business. You possibly do not use them when you present, although they can be a great resource for investors to examine later the fact.
Here are the few included slides that are rarely found in investors’ presentations –
Partnerships – When it comes to partnerships, sometimes it can arise as intellectual property licensing from a university or a main distribution partner who is taking your product to market.
Exit strategy – You are required to show the investors how you are planning on giving them a return if you’re raising money from them.
Demo and screenshots – If you have a screenshot of your online service, a prototype of your product, or any other ‘tell or show’ opportunities, then you can include a placeholder slide in your deck where you will basically represent potential investors how your product works and what it does.
Other documentation – You need to keep the pitch deck short and concise. It is important to keep in mind that your aim isn’t to give investors all the acknowledgement they require to make an investment conclusion. So, this is very important to brief a story, create excitement, and assist in getting all the crucial requests for extra information and follow-up meetings.
Lists that make your pitch successful
Here, are some of the tips which helps you in making the presentation successful –
- Skip the bullets
- Try to keep your presentation short
- Keep the simple
- Tell a story
- Don’t overstate the market opportunity
- Keep your deck current
- Ask for the money
- Send your deck as a PDF
- Make sure your deck stands alone without your presentation
Documents you should be prepared after pitching to investors
As you know while starting the business planning journey begins after developing your pitch deck. You will want to track a thriving investor pitch with the important planning documentation to support your presentation. So, the following are some of the documents that you should prepare to send after you pitch.
- Technical documentation
- Executive summary
- Detailed financial models
- Detailed market research
SAG IPL is one of the top companies among others that make pitch decks for projects. The company is also into crypto development and marketing as well. The organisation is basically settled in India but has clients across the world who always showers with the best feedback. And that’s because the company holds highly skilled professionals who have a lot of experience. So, if you have similar work queries then you can feel free to ask us on our given contact number or mail Id.
Image Source: Google