A Pitch Deck is a brief presentation, often created using PowerPoint, Keynote or Prezi, used to provide your audience with a quick overview of your business plan. You will usually use your pitch deck during face-to-face or online meetings with potential investors, customers, partners, and co-founders.
It provides investors with an overview of your business, whether it's showcasing your product, sharing your business model, business expansion plan, giving a look into your monetisation strategy, and introducing your team.
The main reason for creating a pitch deck for investors is:
- You need to be fast without being bored.
- You need to give a full grasp of your business idea.
Ways to create a killer pitch deck for investors
1. Address the problem
Entrepreneur Dave McClure said, “pitch the problem, not the solution." He said it because generally many entrepreneurs try too hard to sell their solutions without educating their potential investors on what the problem is.
While addressing the problem, be specific about what is the problem? How do you know if it’s a problem? Do you have primary or secondary research to back this up? And who are you solving this problem?
2. Present the solution
Now, as you have addressed the problem, it will be much easier for your investors to know what solutions you have come up with. Before putting up your solution explain some of the alternative solutions that people are using today and why they are not working out for them. Then you can present your ideas and explain why your ideas are better than that of the present one.
Never forget to point out the uniqueness of your solution, it will add volume to your pitch deck.
3. Show your traction
Nobody wants to invest in any business unless they know the number of profits they will be getting. Some of the factors which can convince the investors are:
- Number of paying customers or users you have
- Monthly/annual revenue generated by your agency
- Your growth every month
- Are you profitable?
- Do you have key partnerships in place?
So don't forget to highlight these points to the investors. Also, focus on it more because it will be a deciding factor whether they are interested in further details or not.
4. Explain your products
Very concisely and simply tell about your product. Explain how it works and what is that thing which will bring value to your customers. Also, explain the USP of your product which will convince anyone to choose your product over others.
5. Market size
When investing in any business anyone wants to know what is the market size of the products. So, here present them your market analysis like “if we are tackling an X billion dollar market and if we capture Y percent of this market, we will be rich.”
Explain to them how big your Total Available Market (TAM), Serviceable Available Market (SAM), and Serviceable Obtainable Market (SOM) is.
TAM is the total market demand for a product or service. SAM is the segment of the TAM targeted by your products and services which is within your geographical reach. And SOM is the portion of SAM that you can capture.
Read more about : TAM SAM SOM - What it means and why it matters. Click Here
6. Competitive Analysis
One of the most asked questions from entrepreneurs is “What if Google enters your market with more resources, how do you defend it?” There's not an accurate answer to that question because until Google does that, no one would know what would happen- they could either fail miserably (Google +, Glass, Google Wave etc) or have tremendous success (Google Analytics, Gmail, Google Adwords).
So, confidently explain how you will place yourself in the market and how you will defend yourself from your competitors and what is your idea of becoming better than them.
7. Business Model
"Startups don’t fail because they lack a product; they fail because they lack customers and a profitable business model." ~ Steve Blank
A business model describes the rationale of how an organization creates, delivers, and captures value, in economic, social, cultural or other contexts. It refers to a company's plan for making a profit.
8. Market Strategy
Marketing strategy is a long-term, forward-looking approach and an overall game plan of any organization or any business with the fundamental goal of achieving a sustainable competitive advantage by understanding the needs and wants of customers.
Once your investor is aware of your products, business model and target market, you want to let your investors know how you are going to obtain this market. Tell them about your distribution strategy, how are you going to get your product to the hands of your customers.
Now, when you have explained all the above-mentioned points it's time to tell them how much capital you will need to fulfil all these. Tell them the factors on which you are going to spend the capital you will be getting and how confident you are that it is going to stay under a certain range. This slide should also summarize any funding you’ve received so far if any.
When everything has been presented, it's time to introduce your team, your roles and experiences. Explain to the investors why you are the best team to execute this idea. Tell them about your team and their relevant skills, about your co-founders and the work you have done in the past together and about your advisors. Mention each team member’s history, educational background, and skills, and don’t forget to describe their specific role in the company.
The vision should be communicated in your title slide as a high-level pitch or tagline and at the very end to remind your investors why they should care and this is the key to sucess for creating a killer pitch deck.
Also, read about the 30 Legendary Startup Pitch Decks And What You Can Learn From Them: Click Here
Do share your tips for creating a pitch deck in the comment section.
We, at OpenGrowth, are continually looking for trending startups in the ecosystem.
If you want to know any further information about the startup ecosystem or have any mind-boggling ideas, do refer to the other blogs at OpenGrowth. If you have any suggestions, do let us know in the comment section below.