Pitch Deck- Your Gateway to Business Success
Article Written by Ms. Vimi, Business Analyst, ATBC.
What is a pitch deck and why it is important when starting a business?
A pitch deck is a presentation that gives an overview of the business. Also called a start-up deck or slide deck, it is the first communication tool used by any entrepreneur to reach out to potential investors. A well-designed pitch deck is not just easy on the eyes, but also easy to follow.
Pitch decks get their name from a combination of acetate decks (the big old projector that would show acetate slides one after the other) and the verb “to pitch”. Delivering a business presentation is what the pitch deck is intended for. It is a funding deck that needs high attention and deep thought. A well-designed presentation reflects highly about the organization and attracts prospective investors. It is the visual story of the business that sparks interest in an investor.
Ideally, a competitive pitch deck consists of about 10 slides, no more than 20 mins long, and includes up to 30 points i.e. 10/20/30 rule. On average, an investor will look at a pitch deck for about 3 minutes and 44 seconds. That’s actually on the long side. A successful pitch deck will be shorter. It tells a story and the sequence of the story is important as it has to flow through in a manner investors are looking for. Though businesses are different, it basically follows more or less the same format and the following 11 slides form the crust of these.
1. Vision and value proposition
Vision is the quick overview of the business and value that is provided to the customers.
2. The problem
Present the current problem that the business aims to tackle.
3. Target market and opportunity
The consumers that the proposed business is targeting and the opportunities that are available for the business.
4. The solution
Show how the business would solve the problem.
5. Revenue model or business model
Show how the company aims to generate money.
6. Traction and validation/roadmap
If there are already sales or early adopters using the product, investors would be interested, as this would validate the business. Show the milestones. Showing what has been achieved and the roadmap to future achievements.
7. Marketing and sales strategy
The first question to address is – Is the solution a real business opportunity for a real market to serve? Show how big the organization can grow.
8. Team
Introduce the founders and show why they are the right people to guide the Organization.
9. Financials
Investors expect to see the sales forecast, income statement, and cash flow forecast for at least the last 3 years.
10. Competition
Every business has some competition in one form or the other. How different is this organization from the other? What makes this better than the rest?
11. Investment and use of funds
Potential investors definitely like to know what amount is required as investment and how this is used. Investors would also like to know how this money is going to help achieve the goals set for the business.
Highlights of a pitch deck
Impactful Design:
A well-crafted presentation puts across the point in a clear and precise manner. A concise and compelling pitch deck is the key to securing a meeting with the right investor.
Awesome Graphics:
We, humans, are visual creatures. It is a scientific fact that half of the human brain is directly or indirectly involved in processing visual information. Visuals with charts, diagrams, shapes, videos, icons, etc. are easy to understanding tool that elegantly translates the business story.
Remote Meetings:
It doesn’t matter if we are at work, traveling around the globe, or at home, an eye-catching pitch deck propels one to decide within a few minutes. It’s just a matter of opening a pdf file or glancing through the booklet.
Content Distribution:
It serves as a single source of documentation for anyone to know about the organization and follow updates.
Why Pitch Deck?
A well-planned and well-designed Pitch deck give investors the reason to invest in the business. It’s a bridge between the business and the investor. A pitch deck that captivates the attention and interest of the investor lays a strong foundation for a commitment from the investor’s side. A pitch deck intends to generate interest and even excitement with investors about the business which can lead to future meetings that further leads to the potential for investment discussion. A Pitch deck is the first step in the process of creating the funding for the business. It can be a critical tool in raising money for a business.
A great Pitch deck invites lots of investors which is a prerequisite at the start of a business.
Tips for a Successful Pitch deck
Keep it Simple
A simple Pitch deck that’s clear and concise serves its purpose well rather than the ones that are loaded with too much information. Simple slides that convey high-level ideas with inputs that invoke questions from the investors’ end.
Keep it honest
Maintaining transparency will take a long way.
Keep it short
“Investors have a notoriously short attention span.” says Tony Conrad, co-founder, and CEO of about. me. The shorter Pitch decks are more impressive to investors.
Consider the audience
While making a pitch deck, it’s important to consider what the angel investors or VCs are looking for. We need to consider if they are going to pick up what we show on the pitch deck. Also, we need to know if we have targeted the right VCs or angel investors.
Clarity and focus on message
After identifying the investors, we need to make sure to have one clear message. This message must address 2 things:
1. The problem – What problem customers are struggling with
2. The Solution – How the product or service solves the problem.
Give the audience the appropriate information
A potential investor leaps to become an investor only after knowing
1. Market size and opportunity
2. Business model
3. Expertise
4. Competitors
5. Competitive advantage –
6. Your team – Who they are and what services do they offer?
7. Go-to-market strategy-What are the milestones and
8. The Financials – How much is it going to cost?
9. The investment “Ask”- How much do you want them to contribute?
Use factual information and data to tell a story
Facts and figures related to business make the story interesting. Visualizing simple data such as sales, revenue, expenses, and user growth and having an expert check.
Convey a sense of urgency
The investors have to be instilled in a sense of FOMO (Fear of losing out)
Get straight to the point
Everything has to be expressed in a concise straightforward manner.
Standalone
Make sure your deck stands alone without your presentation.
ATBC’s approach to Pitch deck
We at ATBC focus on a wider range of stakeholders and present a unique way of solving logical connections. Various stakeholders are:
1. Key resources – Presenting the various opportunities, inspiring and giving them a reason to stay with the organization.
2. Vendors – Giving an insight into raw materials to be procured.
3. Key Partnership – Involving the Partners and retaining their interest.
4. Investors – Funding is the most important aspect at the start of the business or during expansion stages.
5. Government – Convincing the government and giving compelling reasons as to how beneficial the project execution is.
A well-crafted pitch deck attracts the right investors for the business, the right resources, the right partners, and investors.
