The subject I am dealing with in this article is important for any entrepreneur or business person. In starting out and at some points along the journey you will need to raise capital. Though there are several ways in which you can raise capital one of them entails pitching to prospective investors or financiers. There might also be times when one has to pitch business opportunities such as partnerships to specific targets. All this will require one to make a pitch. Pitching involves several things and in this article, I will discuss pitch decks.
What Is A Pitch Deck?
To start let us define what a pitch deck is; it is a short presentation that can be created using several options (one of which is PowerPoint) to provide an overview of what your business is all about. Of course, it is typically meant for use in pitching to prospective investors, financiers, or partners. In some cases, you can be requested to actually submit the pitch deck whereas in most cases, your pitch deck will be a reference tool when presenting a pitch. In essence, it is a series of slides (just so you get the picture) – a deck of slides.
What To Include In A Pitch Deck
The forms and formats you can use are usually up to your discretion. What is important is for you to know the core details that must be in the pitch deck. Think of it from a general perspective of what you would normally talk about when pitching. The basic approach is the same, only that a pitch deck entails being brief and concise. Thus your pitch deck would have to include:
Problem or Opportunity
Proposed Solution
Product(s) or Service(s)
Value Proposition
Market Availability and Strategy
Business Model
Competitive Analysis
Business Team
Financials
Funding Required
Key Considerations When Drafting Your Pitch Deck
One of the key ones is the length – strike a certain balance. In principle, it is recommended that a pitch deck must have anything between 10 and 20 slides. The best would be 10 slides as it is not too short or too long. However, if you cannot cover everything in 10 slides then ensure you do not go past 20 slides. On the details to include I shared with you I pointed out 10 items. Thus you can dedicate on average, 1 or 2 slides per item.
Problem or Opportunity
The thrust of this item is to communicate the problem which essentially is the business opportunity. It should be apparent that it is a serious issue and is widespread. It should be relatable to your audience.
Proposed Solution
Clarity and practicality must be demonstrated here. Prospective investors are also usually concerned about whether or not this will be scalable over time. It should also be clear why now is the time.
Product(s) or Service(s)
Clearly explain what your product(s) or service(s) will be or are. It would be great to demonstrate through visuals such as images how those elements will be like. If you have already been operating it would be wise to include some testimonials. Your product(s) or service(s) must be simple, clear, and must work.
Value Proposition
The chances that what you are doing or are trying to do has been done before is high. You need to explain why your offering will be unique and attractive enough to lure customers. What makes your brand the real deal? – You must clearly demonstrate that.
Market Availability and Strategy
Investors are so particular about this because it is literally the backbone of the success of a business or startup. Demonstrate that the market potential is there and will even grow moving forward. Explain the size of the market to show its potential. If your product(s) or service(s) will come in as a disruptor, investors will be more likely to invest.
Business Model
How will your enterprise make money? You need to answer that and it must be practical. Advertising, subscriptions, and direct sales are some of the examples of business models.
Competitive Analysis
You must show that you understand the competitive dynamics of the space you want to operate in. You must demonstrate you understand competitors and how you will handle them
Business Team
Investors are not usually comfortable investing in something that involves just one person. Briefly, highlight who our colleagues are, their skillsets, and their role in the enterprise.
Financials
Investors are keenly interested in this slide. Here you are just giving an overview but the thrust is to give projections. The period to cover varies but 3-year projections are usually the norm. Be wary of over-estimating things here. Remember moving forward your results will be measured against these projections.
Funding Required
You have to state the funding that you are looking for. It is recommended that you state a range instead of stating an amount. This will usually broaden your prospects of getting an investment.
You must always remember that simplicity is the highest form of sophistication. Your pitch deck must have clarity, simplicity, and above all, it must be compelling or convincing enough. It is witty to include visuals such as images, infographics, and the like. Do not forget to include the name of the business or startup, and relevant contact details. You can include that on the title slide or you can include it at the end.
