In this blog, talks about the burning problem of entrepreneurs how to create a powerful pitch decks to get funding for their business. Winning Pitch Deck is very important to impress investors.
#1 what is a Pitch Deck ?
Pitch deck is the presentation given by entrepreneurs to the investors to get funding for their business.
Here he shares an example of a powerful pitch deck created by none other Mr. Ratan Tata, chairman of the Tata Group, for his family capital fund.
#2 Slides in the Ratan Tata winning Pitch Deck
Mr. Tata prefers to see the presentation of the entrepreneurs who come up with a pitch deck comprising these 10-slides:
slide #1: what is the Problem that You are Solving ?
while creating your pitch deck make sure that there is a real problem in the market that you are going to solve with your product or service.
In your first slide of the pitch deck:
• Mention the burning problem you are solving
• validate the problem you are solving with the real-life examples
• Do not stuff the slide with too many problems
• Do not stuff the slide with too much content
Inscribe your winning pitch deck In a way that an Investor must be able to understand:
• which problem you are going to solve
• How well you understand your customer’s burning problem
slide #2: what Is the solution that You Bring ?
Consider these two conditions while preparing this slide:
• Your product has already reached the customer and you are trying to raise big funding for its expansion.
• you do not have a product and you are at the early stage of raising seed funding.
In both conditions, describe the solution, product or service you are providing:
• write about your company’s business
• Mention whose problem you are solving
• Tell what solution you will produce to solve the problem
It will build trust in your investor that you better understand the problem and solution.
Slide #3: Unique Selling Point
Include the following points in your slide:
• what is unique in your solution which your competitors do not have in the market
• How you will pitch your solution to the customers
• why will customers buy your solution
To make the slide more credible for the investors, insert testimonials of some of your customers if the product is already available in the market.
Pitch your solution with the help of customer’s stories to make the investors trust your solution.
Slide #4: Do You Know Your Competition and Barrier to Entry ?
Do you know Your Competition ?
Many entrepreneurs do not know their competition before pitching their business.
For example, if you are manufacturing the paper, every company making paper is your direct competition, but all those who are making notebooks and registers are your indirect competition.
So, do not underestimate your indirect competition; write it down in your slide.
Barrier to Entry
In the second part of this slide, highlight the unique quality in your product that no one can replicate.
To stop others from copying your product:
• you can get a patent of your product, process or technology
• If your product or process is difficult, nobody will copy that
For instance, till date, nobody knows the secret formula of producing popular beverages Coca-Cola. This is their intellectual property.
Every investor wants to invest in the company with the highest numbers of intellectual property rights.
Slide #5: Revenue Model
How will you earn revenue ?
Make an excel sheet and write down below figures about your revenue:
• how much revenue you are earning or earn when your product is launched.
• Projected value of your product, based on the value of your competitor’s product (if the product is not launched)
Take care of these points in this slide:
• Projection should be realistic, not superfluous that investors do not believe.
• Do not make the plan form 5 years in your slide, because today’s business world is extremely dynamic.
• Initially, make the plan tor just 1 year, and review it before jumping to the next year.
• Revenue model should clearly explain how will the customers and money come
Slide #6 Who is your Target Group ?
Many entrepreneurs are demolished at this slide. They say that the complete world is their target audience, that they can sell their product to everyone.
So, in this slide, you should define your exact target group based on the following parameters:
• income group
• interest in the product
• Decision-making capacity
Target customers can be different for different products, which draws investors’ attention towards your business, as they are interested in your knowledge about your customer.
Slide #7: What is Your Product / Service ?
If you have a product show that in the slide.
If you do not have a product, tell the investors:
• About the competing products in the market
• What differentiates your product from the competition
If you do not have a product, you can create a sample or minimum viable product.
For instance, if you want to make a big machine costing Rs 50,000, you can create a small part of it at an investment of Rs 5000 to show the investors.
It will get the attention of the investors, and your capacity to make optimum use of money will build trust in them.
Slide #8: Milestone Achieved and Planned for the Next 12 Months
Inscribeall the big and noticeable milestones you have achieved in the last 12 months.
It can be:
• hiring new employees
• Product launch
• Customers onboard
write down all the milestone that you want to achieve in the next 12 months like:
• Employee hiring
• Geographical expansion
• Product launch
Having a vision and strategy for the next 12 months, makes the investors realise your ability to visualise the future.
Slide #9 Funding So Far
write down all the funding you have ruceived so far in this slide.
Funding does not need to be from a big investor, it may be from your:
• Angle investor (Angle investors gives funding below Rs 50 lakh)
• venture capitalist (Around $1-2 million)
Your past fundraising capacity will be a plus point to win the trust of the investors.
Slide #10: The Team
An investor trustsyou and your team’s ability before finalising a deal. As such, you have to showcase your team’s ability to substantiate your claims.
In your last slide, show that your team is strong enough to bounce back in the difficult times.
Resource for Creating a Powerful Pitch Deck
You can take the help of consultants and investment bankers apart from the following industry associations for creating a powerful pitch deck:
• Headstart network
Entrepreneurs can get help from all these associations having presence across the country.
How do you write startup pitch?
Tell your startup story.
Convey the unique value of your startup’s product or service.
Let potential investors experience your product first-hand.
Be clear on who your target audience is and why.
What make a great pitch deck?
All great pitch decks include a story that guides the reader from the initial pain point to the solution to the promised land
What make a pitch good?
A good pitch balances business and emotional needs.