By Fernando Berrocal
After you've turned your business concept into reality, the following stage is to request assistance. What methods do you use to secure funding? Your first move should be implementing a solid pitch deck. This is a collection of slides that startup founders use to influence potential investors to invest in their business. It's vital that your pitch deck is successful in convincing your target audience–really, it should be persuasive to any individual in general. It's not difficult to create one, and there are certain benefits to doing so while your business is just getting its foot in the door.
Why do you actually need a pitch deck for your startup? You might be debating if it's needed. Even if you aren't looking for funds right now, always be prepared to present your concept. mA pitch deck is required by more than just funders. There are various additional reasons to develop a pitch deck that effectively delivers your message.
First, your thinking is clarified by using a pitch deck. You may assume you have a fantastic strategy in mind, only to learn that it isn't sustainable. Thinking about your enterprise from a distance helps you to see flaws and opportunities. It also helps you address issues you may not have thought of in the planning process. The habit of developing a pitch deck drives you to think about all elements of your business, including financing and sales, among others.
Second, the best candidates will be primarily persuaded by the pitch deck. The individuals you hire initially will have a big influence on your eventual success. If the best candidates are out of your range financially, your next move will be to convince them to work with you out of confidence, inspiration, and a genuine sense of opportunity. A pitch deck helps construct the narrative that will persuade them to work for your organization–while also keeping them interested and active.
A pitch deck can also be used to impress potential investors. Really, the deck’s main aim is to advertise your organization to prospective investors and persuade them to invest. It's probably the first thing that a potential investor observes. You may not need (or want) the funds as of now, but if you do, you will almost definitely face a deadline.
What should you incorporate in your startup's pitch deck? There are several points of view on what should be shown. The overarching suggestion is to adhere to the “classic” format, which is preferred by the majority of investors. In the following list, we´ll break down what you should include:
- The overview, mission, and vision of a business
This should be a synopsis of your startup, including sector, target market, and the problem to address. If any person picks it up, they should have a good idea of what you’re all about. Next, you'll want to inspire your audience's interest in the issues that your organization will try to resolve. Demonstrate how you want to develop your firm and what it will look like in the upcoming years. Keep in mind the social impact your organization will have on the world (or improve things for your clients). That goal should be comparable to your elevator pitch. It should be interesting; while also being concise enough to create an interesting sound-bite that your audience will remember.
- Workforce
For some investors, the quality of the workforce is the most important factor. Biographies for each co-founder, main employees, mentors, and partners should be included. If your team hasn't previously established successful firms, find ways to emphasize its persistence, desire, and unique problem-solving approaches. Highlight previous initiatives or activities you have participated in.
- Issue and solution
Describe why your organization is necessary. Create a mental image of someone in your target market who is experiencing the issue you'll try to solve. Include details to make it feel more significant and reachable. Explain how, now that the problem is addressed, your startup will “save the day.” What is the effect of your answer on their situation?
- Product and/or service
Describe how it will appear to your clients when it is delivered. What will the public's reaction be? What characteristics and advantages will the product and/or service provide? Will it make users’ lives simpler? You should always include photographs to show aesthetic features and give an idea of how features will work.
Analyze the types of customers for whom your product and/or service is designed. Define your target market in terms of demographics (age, gender, etc.) and psychographics (personality, interests, etc.) Consider what defines a certain type of person as a potential customer for your organization–attempt to be as wide as feasible. If your target market is made up of businesses, you'll need to describe it in terms of who you would like to serve. What sector do they work in, how big is it, and how does the organization promote itself? You'll also need to define who your target market is. Market opportunity is where you determine how big the market is. How many people or organizations are affected with the problem that isn't being discussed? Is your firm limited to your state or country, or do you see possibilities elsewhere? Persuade your audience that the market opportunity is significant.
- Market competition
Since you're not working alone, you must demonstrate that you are aware of your competition. Think about the market’s landscape: is it fragmented, or dominated by key players? Make a list of any potential competitors, as well as an analysis of their advantages and disadvantages. Explain why there are opportunities in the market specifically for your firm. Even if you're offering a brand new category, customers are still using alternatives to address the same problem.
- Traction
If there's one element that stands out, it's when you talk about how much traction you've already gained. This is where data on how quickly your firm has grown users and/or clients should ideally amaze your audience. Even if you don't have any actual consumers, develop a plan for demonstrating genuine enthusiasm for your product. To illustrate how well your product is functioning in the market, you might use client testimonials or anecdotes about unique customer experiences.
This section isn't as complicated as it seems; it’s intended to discuss how the organization will generate revenue. Will you offer a freemium option to certain people and then charge them in tiers? Alternatively, you might charge a fee for consultations or place customers on a retainer for a specific amount of work. If you have a pricing in mind, you should mention it in your business model presentation.
- The Marketing Approach
This section of your business plan's strategy section should explain how you plan to get your product in front of your target market. What can you say to encourage them to give it a shot? What will ensure a great experience for them? You'll have to plan out your marketing approach in stages most of the time. You might start by contacting your contacts and posting in relevant social media communities. Then focus on Search engine optimization (SEO), content marketing, and even paid marketing initiatives. Finally, when you’ve established long-term sustainability, focus on direct marketing.
- Investment Required and Use of Funds
This is where you enter a figure for how much money you'll need. Be explicit about the amount of money you require and how much equity you are willing to provide the investor in exchange for the money. You may also want to detail the quantity of stock points that each investment level will acquire. Note any other particular terms of the contract, depending on your negotiating posture. You should also describe how the funds will be used and what the expected financial outcome will be at that point in the firm's development. As your business expands, include more detailed expense projections.
- Getting Out Strategy
Investors will want to know how and when they can expect a return on their investment. If you wish to depart, you must be extremely clear about your intentions. Do you plan to sell the business? What about an Initial public offering (IPO)? Include your startup's timelines as well as a range of expected returns.
Ready to bring your startup to the next level? Apply to MassLight’s next batch. MassLight supplies capital and a dedicated tech team. We take equity in return. Have questions? Refer to our FAQ page.
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