A good pitch deck is essential for an entrepreneur because it can make or break a deal. If you search for financing to support your business idea, having a convincing pitch deck will make the process much easier for you.
Attracting investors to a newly established business can be challenging. This is where a great pitch deck comes to play. Creating a pitch deck that helps attract and engage investors is something entrepreneurs often question how to approach.
This article consists of expert advice and a few simple tips on creating a pitch deck that will encourage investors to invest in your business. The key to a powerful pitch deck can be summarized in three words: simple, straightforward, and captivating. Keep reading to learn more.
‘Pitch Deck’ – the name itself defines the role. A pitch deck, commonly known as a start-up deck or a slide deck, is a visual document that provides a complete overview of your business plan and highlights the key pointers essential to take the business forward.
A detailed pitch deck consists of information regarding the business’ products and services, the amount of money the company needs, and major financial projections. All in all, your pitch deck should provide investors with all the information necessary to make an investment.
What’s the Main Objective of a Pitch Deck?
Is the primary goal of a pitch deck to raise money? Let’s explore further to find out. A pitch deck is designed to be a sales tool. It’s created to secure the funding a business needs to scale.
Small businesses may face competition from those who have the upper hand. The purpose of a pitch deck is to help a small business gain an edge over its competitors and establish itself in the market.
The ultimate objective of a pitch deck is to grab the attention of investors and help secure funding. Remember, an investor won’t be fully convinced after the first presentation; it takes time for an entrepreneur to demonstrate the true potential of their business. Your objective is to present your business in the best possible light, fascinate investors, and secure another meeting from them.
What Should Be Incorporated in a Pitch Deck?
Businesses may differ in terms of what they offer, their policies, and their needs. However, the purpose of a pitch deck remains constant for all: persuade investors.
The slides you include in your pitch deck should cover the following points: vision, value proposition, problem, opportunity, solution, revenue model, business team, strategies, competitors, financials, and your plan to utilize the funds.
An introduction is the first thing that should be included in your deck. With it, you’ll build upon your ideas and briefly introduce the business to potential investors.
The introduction should be short and simple – try to describe your business in less than 140 characters in the first slide. This will give investors insight into your business’ model and how it plans to generate revenue.
You can also refer to other companies to point out your value proposition. Make sure that the references you make are valid and in line with your goals.
How to make a pitch deck – focus on the problem your business is solving.
Use this slide to present the problem that you’ve identified. Touch upon the solutions already offered in the market and try to use real-life examples investors can relate to.
Relatable stories will connect to the audience and make it easy for them to understand your business and the goals you’re trying to attain.
Once you’ve stated the problem, you can expand on a positive opportunity for your plan to flourish in the market today.
Use this slide to discuss your target audience and how your business aims to grasp a reasonable market size. Positioning your company, the right way to the right people, can yield great dividends for entrepreneurs.
This slide is where you may also highlight the economies of scope and scale of your business plan
This slide is the crux of your pitch deck. Here, you describe your product or service and how it solves the problem underlined in the slide above.
Every story has a hero that saves people from the bad. Your business’ story is no different. The villain here is the problem you highlighted earlier. So, keep your product description brief and focus more on the problem-solution format.
Try to make your presentation visually attractive by adding pictures, animations, or gifs.
So far, we’ve looked at your business, your offerings, and how you want to position your brand in the market. Now, you need to stress the model through which you’ll generate revenue.
Discuss how you’ve planned to set out your business budgets and how you’ll cover your costs. For example, does your product pricing cover the initial costs, or does it earn you some profit? Will you focus on charging less for your products, or will you keep a premium pricing?
For a business to succeed, it should consist of a hard-working team. Therefore, you should hire the right people with the right skills.
While projecting the team-building criteria to the investors, you should mention the critical expertise your business needs. The kind of people you plan to hire is a crucial decision that must be made for the company’s future.
Your strategy will be one of the most important parts of your pitch deck. Therefore, it would be best to outline your strategy and relate it to how you plan to engage and convert customers.
Dive deep into the tactics you’ll use to reach out to a broader audience and make sales. You can also compare your competitors’ strategies and how yours are better.
What key opportunities do you have that’ll help you gain an edge over others? What are you offering your customers those other businesses are not? Answer this question frequently in your presentation to win over potential investors.
Investors will be interested in going over your business’ financial statements. Therefore, your pitch deck should include specific figures depicting your income statement, cash flow, and sales forecast.
Make sure that your projections are not overly optimistic and look realistic to the audience. It’s advisable to use graphs and charts to make the appeal visually attractive.
Plan to Utilize Funds
It’s time to conclude your pitch deck by asking for money – as awkward and exciting as it can be. You should make your expectations clear by clearly stating the amount of money you’re seeking.
You must explain the purpose for which the money is required and how you’ll spend the money you receive. Investors will want to know where and how their money is being utilized and whether it’ll help the business achieve its objectives.
What Are Some Exciting Tips to Make a Pitch Deck Successful?