VIEWS: 271 PAGES: 21 CATEGORY: Writing a Business Plan POSTED ON: 10/14/2013
This Business Pitch Deck is a PowerPoint presentation that can be used to pitch a business plan to potential investors. Pitch Decks are different than a business plan by summarizing the important factors and pitch-worthy characteristics of a business plan. Follow the examples and explanations provided, and you can create a custom Business Pitch Deck to attract investors to your business. This presentation is ideal for small businesses that are starting up and need more capital to open, run, manage, and operate a small business.
Business Pitch Deck © Copyright 2013 Docstoc, Inc. 1 Developing the Pitch Always remember to keep it simple The Goal of the Pitch Pitch should be 10-15 slides and 10 minutes is: Appearance matters – just To communicate the use key sound bites on company story clearly slide – the rest you should be prepared to verbalize To create excitement Use fonts greater than 32 about the company for titles and 28 for text To get a second Don’t use slide animations unless they add real value meeting! © Copyright 2013 Docstoc Inc. 2 Business Pitch Deck Slides This is only the suggested order of the slides. You should present in the order you believe presents your business and business opportunity in the best light. Slide 1– Company Introduction/Company Purpose Slide 2– The Problem Slide 3– The Solution Slide 4– Business Model Slide 5– Product Slide 6– Market Slide 7– Competition Slide 8– Competitive Advantage Slide 9– Go To Market Strategy Slide 10 – Team Slide 11 – Financials Slide 12 – Use of Funds Slide 13 - Summary © Copyright 2013 Docstoc Inc. 3 Slide 1 –Company Intro/Purpose This slide will just be a title page with your organization name, your name and title and your contact info. You will speak to these points in a 60 second elevator pitch. It is key as everything else flows from it! Presenter must cover: Who you are – experience/team’s experience You need to define the company and business in a single declarative sentence – i.e. what you do What markets you compete in Significant milestones to date Size of the investment required This all needs to be accomplished in 1 minute without additional slides – just you talking to the points All the slide consists of is: Company Name Your Name/Title Your Contact Information © Copyright 2013 Docstoc Inc. 4 Slide 2 – Problem or the Pain Key slide for investors as it introduces the customer you sell to. The goal is to get everyone in the room nodding in agreement and buying in Describe the Pain of Key Points to consider the customer What problem do you Make sure you address solve? who your ideal ◦ Describe what the problem customer is who will is pay for the solution. ◦ Address where the demand Present your solution came from as “the pain killer/must Outline how the customer have” rather than “the addresses the issue today vitamin/nice to have” Quantify the problem Always avoid concisely. How much does presenting yourself as a the problem cost the solution that is owner? searching for a problem © Copyright 2013 Docstoc Inc. 5 Slide 3 – The Solution Key slide as it demonstrates your company’s value proposition to make the customer’s life better and alleviate “the pain”. Show you are a must have and not a nice to have! Develop a compelling presentation of your solution – use of graphics, illustrations, or pictures are recommended (Keep It Simple) Relate to the problem slide – focus on how the pain is solved! List the key points that will ensure that the audience clearly understands what you sell and your value proposition ◦ Explain what your solution is, what it does but NOT how it does it – no tech or technology talk! ◦ What happens if it is implemented? How much will it save? What will it allow your customer to do that couldn’t be done before? ◦ How does the customer pay? ◦ Why are they going to pay for a solution – the benefit to them – i.e. cost savings? Elimination of a bottleneck? Increased market share or revenues for them, etc. © Copyright 2013 Docstoc Inc. 6 Slide 4 – Business Model Key slide allows you to address critical issue of how you will sustainably deliver value to your customers Cutting to the chase – How will you make money! Who are your ideal customers? Sales/Distribution Model - From whom do they buy? (Direct, sell through channels) What are your channels of distribution? Pricing model – how are you going to make money? Discuss gross margins and cost of goods. Revenue Model – how will your business scale? Are customer acquisition costs scalable? Any economies of scale with higher volumes, more customers? Good time to drop names of organizations that already use your service or products and bring up customer pipeline (if appropriate) © Copyright 2013 Docstoc Inc. 7 Slide 5 – Product Your product line-up (form, functionality, features, benefits) Describe your product ◦ Highlight the “underlying magic/secret sauce” ◦ Describe product/technology – less text, more diagrams, schematics and flow charts ◦ Objective proof concepts helpful ◦ Give a compelling description without abbreviations or “techy” terms Assume audience does not know the technological field you are in Always relate your product and feature to customer derived benefits and the Basis of Competition © Copyright 2013 Docstoc Inc. 8 Slide 6 – Market Need to demonstrate strong knowledge of the market and demonstrate a significant market opportunity. How big is the problem/pain? Identify and profile the customer – who they are and where they are Use graphs to show market size and growth Calculate Total Available Market (TAM) and Served Available Market (SAM). The SAM is the segment of the market that is reachable for you. Explain how you reach these customers Show how your solution is positioned in the market and how uniquely it fits © Copyright 2013 Docstoc Inc. 9 Total Available Market/Served Available Market Example You are selling a specialized lamb based canned dog food: Total amount of dog food sold: $6 B (Total Available Market – TAM) Total amount of canned dog food sold: $2B Total amount of specialized canned dog food sold: $1B Total amount of specialized lamb based canned dog food: $500M (Served Available Market –SAM). ◦ You could say that the $6B TAM is eventually your market but… The SAM is the smallest segment for credible penetration for you to focus on – investors like to see focus! © Copyright 2013 Docstoc Inc. 10 Slide 7 – Competition Don’t dismiss your competitors. Discuss why you are good, not why they are bad. Competition is good – it validates the market! Competitive Landscape Basis of Competition List your competitors What is the criteria by which your Delineate competitors key strengths customer will make their decision and weaknesses when comparing your product with Address any large companies company XYZ. response to your entry into market List all of the criteria in order or Speak frankly to your strengths and importance to the customer, not you! weaknesses. Be quantitative if you can. Discuss how you meet and exceed COMPANY STRENGTHS WEAKNESSES the customers Basis of Competition Acme Inc broad line slow to respond Some examples could be: financially strong old technology ◦ Quality (define) ◦ Innovation XYZ Corp large sales force quality issues ◦ Breadth of Line Our company ??? ?????? ◦ Accuracy (quantify) ◦ Specificity (quantify) • List all key strengths and weakness for major ◦ Price (less than what?) competitors and your company – be honest! • Address how you are different, how you stand out ◦ Tech support (perhaps turnaround time) • Highlight the Basis of Competition - How you meet ◦ Brand name recognition these requirements ◦ Distribution channels © Copyright 2013 Docstoc Inc. 11 Slide 8 – Competitive Advantage What are your key sustainable competitive advantages? – extract from previous slide. List your competitive advantages relating them to customer’s Basis of Competition What are the differentiated features of your product that will attract the decision maker? How long will you have a competitive advantage in the market? How are you going to protect your advantage (patents, copy rights, trade secrets)? Talk about your IP strategy and the status of your filings © Copyright 2013 Docstoc Inc. 12 Slide 9 – Go To Market Strategy Key slide – highlight any third party validation Briefly address the Marketing Plan ◦ What market segments to pursue? ◦ What marketing strategies you will use? ◦ How you will reach your customers (PR, Media, SEO, Ads)? ◦ How you will acquire your customers? Briefly address the Distribution Plan ◦ What is your channel of distribution – direct vs. indirect channels, partners, etc.? ◦ How does this compare to industry as a whole? ◦ Why will it be successful? Identify customer acquisition cost vs. customer derived revenue (if in the right proportions will show that business will scale) © Copyright 2013 Docstoc Inc. 13 Slide 10 – Team Show company has traction and understand that investors really invest in people Team (this could be Show org chart your greatest strength) Short summary of each founding members key strengths and achievements Board of Directors and/or Advisory Board ◦ If any members have recognition in the industry Mention important milestones achieved © Copyright 2013 Docstoc Inc. 14 Slide 11 – Financials Make sure the audience understands the underlying assumptions of your forecast. Elements that make up each category shown in next slide. Revenue 2013 2014 2015 2016 Sales (000) $500 $650 $720 $850 Cost of Goods $200 $250 $250 $295 Sold Gross Profit $300 $400 $470 $555 Gross Margin % 60% 62% 65% 65% Operating Expenses Selling $76 $88 $98 $113 General/Admini $45 $52 $57 $67 strative Total Operating $121 $140 $155 $180 Expenses Net Income $179 $260 $315 $375 Before Taxes © Copyright 2013 Docstoc Inc. 15 Financial Slide backup information Operating expenses ◦ Selling Expenses include Salaries and wages Commissions MarCom (advertising) Other ◦ General/Administrative (G&A) Expenses include Salaries and wages Benefits Payroll taxes Insurance Rent Utilities Office supplies Travel and entertainment Furniture and equipment You can do a 3-5 year forecast as long as you are realistic Everyone knows that this is an estimate but still need to know how realistic your financials are Can also include number of customers and conversion rates © Copyright 2013 Docstoc Inc. 16 Slide 12 – Use of Funds Investors prefer to see funds used for marketing and sales Reiterate how much you are seeking Show the use of funds – Pie graphs work nicely How long will the funds last? Will you need another cash infusion or is this all the financing you will need? © Copyright 2013 Docstoc Inc. 17 Slide 13 – Summary Use this slide to close with a bias towards ACTION! Why they need to invest NOW! Describe current status of the company ◦ Accomplishments to date ◦ Timeline List Strengths unique to your company Finish with 3-5 points you want the audience to remember when they leave the room ◦ Share the details of your positive momentum If an excited audience member can describe your business and business opportunity to a colleague in one minute you have succeeded! © Copyright 2013 Docstoc Inc. 18 Be prepared with back up slides You may be asked to describe risks and your assumptions as well as Exit Strategy Assumptions and Risk – have a slide ready List critical Describe negative Describe what you assumptions (I impact are doing to decreasing order mitigate or “de- of likelihood) risk” Start with ones that may affect revenue/profit Timeline issues © Copyright 2013 Docstoc Inc. 19 Exit Strategy Back Up Be prepared to address Exit Strategy ◦ Acquisition Could be By Supplier By Competitor By Strategic Partner ◦ In all cases try to name Names if possible ◦ Recent Acquisitions XYZ acquired Acme in 2013 at X multiple of Sales ◦ At the end of year 3 we will have sales of $Y ◦ IPO – examples if companies in this sector have recently completed one © Copyright 2013 Docstoc Inc. 20 Tips on Communicating the Pitch Investors respond to your story – not how the product works. Talk about how well the business is going Traction is the thing – tell your story of momentum building through quantified evidence De-Risk before it is brought up. Address that you can build it, people will use it, people will pay for it, and then more people will use it (growth) Try to concrete and quantifiable – don’t use fluff! Address your weaknesses honestly Keep pitching and iterating – the more you pitch the more you will get a sense of what resonates with investors. © Copyright 2013 Docstoc Inc. 21
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