Preparing a pitch deck is the most important aspect of obtaining funds for a business since it might make or break a deal. The quality of your pitch deck, the elements included in a pitch deck, and the way you present it will determine whether or not you will receive funding for your business or not.
Here in this article, we have thoroughly defined the seven most crucial elements to include in a pitch deck. But before jumping on to that, let’s get some basic clarity about the crux of the topic.
What is a pitch deck?
A pitch deck, which is also known as a startup pitch deck or slide deck, is a visual document that is designed to arouse investors’ interest and even excitement in a startup, which leads to another meeting or investment discussion.
A pitch deck is an important tool for obtaining funds for a firm. It is a presentation of your business idea or plan that gives potential investors a brief overview of products or services. Also, as fundraising needs, and critical metrics such as value, target market, and financial goals. It is typically presented in a visually appealing, concise, and instructive way that attracts the attention of investors.
What is the purpose of a pitch deck?
A pitch deck can help firms and founders raise capital by providing a detailed but concise overview of their business. However, the main purpose of presenting a pitch deck is not to get you immediate funds but to spark interest. And to learn more about your business with your potential investors, such as venture capitalists, angel investors, and so on. It should be prepared in a way that leads you to an investment discussion with investors.
What elements should be included in a pitch deck?
Are you wondering how to prepare a pitch deck? Or you are not sure what to add and what not to? Don’t worry, we are here to guide you on every critical point pertaining to pitch deck preparation.
Understanding the elements to include in a pitch deck gets you one step closer to your future business by assisting you in getting the funds you require, so let’s have a look at the list of the elements to include in a pitch deck given below:
The first and utmost element to include in a pitch deck is your introduction, which is basically your business idea in a nutshell and your introduction as an entrepreneur. It can be presented in the initial two slides giving glances over what this pitch deck includes.
- Problem and solution
Every startup should solve a problem for its target market. To send a clear message that people need something to help them, convey the problem first, then provide a solution. Conducting an extensive study on the problem and solution can help you add significant facts and details to this slide. Use graphs and charts to demonstrate that the problem genuinely exists.
Make compelling points and do thorough research to successfully define and effectively present, why people need your product or service and how it will solve the problem. Persuade your audience by evaluating how your product is distinguished, and make sure that your slides leave no gaps in your story or unsolved issues. Mention the advantages that prospects will receive if they get your product or service. You’ve already told them, but construct a better picture of them as the last note.
- Marketing and sales strategy
After outshining your audience with your product and business plan, effectively explain a go-to-market strategy. Obviously, the extent of these slides will explicitly state that you have planned how to make your product stand out and gain competitive advantages. It should be written in a way that does not sound like selling a product, but rather helping people.
When it comes to persuading investors, representing your company’s financials is an important factor. Thus, creating a set of detailed revenue and cost estimates improves your reliability with potential investors.
Furthermore, you should demonstrate an understanding of the money you are obtaining and how you intend to utilize it to fulfill crucial objectives for future fundraising in these slides.
- Investments and funding
After you have presented all of the preceding slides and shared your brand values, it’s time to tell them what you require. It is the part in which you will demonstrate the funds your startup needs to launch and how you will utilize them. Make sure to present it clearly, directly, and honestly to win trust.
The final and yet another most important element to include in a pitch deck and the often overlooked element is showcasing your team strength. Now that investors are all aware of the ins and outs of your startups, they want to know how you manage your business. It is the best part of showcasing the talent you have in your team.
Tips to prepare a perfect pitch deck
- Rather than providing all of the facts and figures, use storytelling to add an emotional component to it and make your presentation more engaging.
- Before developing your pitch deck, conduct extensive research about your target audience and the market competitors.
- Use brief, simple language that communicates your message clearly and directly.
- Insert charts, graphs, and intriguing images into your presentations to maintain a balance of words and pictures.
- Be mindful of numbers and statistics; go through them twice to confirm that the numbers and figures are correct.
- Most investors prefer two-pitch decks in order to fully evaluate your business concept. One for the purpose of presenting and one for further information about your company. As a result, you need another pitch deck in pdf format to send to investors.
These are some of the most crucial tips to consider before preparing the pitch.
Most entrepreneurs get confused over what to include and exclude in their pitch deck. They might add too many unnecessary details, resulting in a long, inefficient, and boring pitch deck. However, by including the above-mentioned elements and tips you will be able to prepare a successful pitch deck.
Frequently Asked Questions FAQs
What is the purpose of a pitch deck?
The purpose of a pitch deck is to ignite interest among the audience and investors to know more about your product or service and lead to investment discussion.
Why do investors need two decks?
If they find your pitch deck interesting, they might need a more detailed version. That is why it is suggested to keep a pdf file of it ready to share.
Is it possible to get investments without a marketing strategy?
It is next to impossible to get funds without having a marketing strategy as it works at the core of every startup.
How to get help in creating a pitch deck?
If you are not sure or confident about preparing your pitch deck, you can take assistance from a consulting agency such as Lakhani Financial Services. They will assist you with pitch deck preparation and fundraising.
What is the length of an ideal pitch deck?
The length of your pitch deck can be varied as it totally depends upon the vastness of your startup idea. But you should use concise, clear, and direct language to make it as quick as possible to save your own and the investor’s time.