Why should you know how to create a pitch deck?
Especially for start-ups, but also for all companies that want to convince investors of their idea, it is worth dealing with the creation of a pitch deck. There are several methods for pitching, but the pitch deck is one of the most proven and has been used for a long time. Here we explain what a pitch deck is, how it is built and what structure it has.
What is a Pitch Deck?
A pitch deck is basically a short presentation consisting of 10 + 1 slides. The business idea and the business plan are presented as concretely and concisely as possible, so that investors or other lenders are convinced of the business model. It’s a more motivating and inspiring version of your business plan.
In the start-up and investor scene, the pitch deck is gait and give, and there is usually no way around it when presenting to juries or donors. In the meantime, the pitch deck follows a largely uniform structure and certain specifications. You should follow these best practices to get the best results. A certain margin of manoeuvre is, of course, still possible.
What are the tips for creating a pitch deck?
Before you start creating a pitch deck, you should first understand what exactly you want to achieve with it. What is the purpose of the presentation? Which arguments are most likely to convince you of your exciting idea? What facts can show you to be the perfect team? And what are the reasons for an investment right now?
Once the most important content has been satisinuly, it’s time to create it. PowerPoint or Keynote is usually used here. However, there are also a few free and paid tools to help you create.
A basic rule for any presentation that can also be ideally applied to the pitch deck is Guy Kawasaki’s 10/20/30 rule. A presentation should not have more than 10 slides, should not last longer than 20 minutes, and the font size should always be at least 30. This helps you focus on your most compelling arguments. Keep in mind that investors listen to countless presentations in a row and usually decide after a few minutes whether an investment is possible or not. Throughout the creation process, it is worth putting yourself in the role of investors again and again. Would she convince? What is she really interested in?
For the structure of a pitch deck, it makes sense to follow a certain structure. We will show you this one here.
Time: 7 days
The film should be kept as simple as possible. Here your company name and logo belongs and possibly a short presentation and the occasion for your presentation.
Here you will introduce the founding team or the individual founder. This slide must show that you are competent, creative and trusting and that it is worth investing in you. Often even the founding team is more important than the idea. Here you not only bring in data and facts about your qualification, but also your personality. Show why you do what you do and how passionate and reliable you are. With a founding team, you should show who takes on what role in the company and how your team is composed.
Problem and solution
These two slides first introduce the problem that your target group has and which you want to solve. This point can also be supported by a market analysis with surveys or studies to show that this is really a problem and not your imagination. On the following slide, you will present your optimal solution to this problem.
Whether product or service: Here you will learn about the most important functions of your offer. A few technical data and the most important facts belong here, but don’t overwhelm your listeners with too many details. It’s even better to have a prototype that’s designed to illustrate your product or service and that investors can interact with when needed.
The next slide takes a closer look at the audience. How big is the market and is it already saturated? With a professional own or foreign market study, this point can be optimally underlined.
USP and competitors
These two slides first define the unique selling point and what sets you apart from your competitors. The uniqueness of your offer and the added value for the customer are crucial here. Next, list some of your main competitors and what you do better than this.
Explains how and from when sales are generated. The Business Model Canvas with an emphasis on income flows can be used here to illustrate this.
Proof of Concept (POC)
Proof of concept is optional depending on the scope of your presentation, but can be the key point for your donors.
On the last slide, you specify how much capital you need and what exactly it is used for.
A simple Internet search also allows you to find various, really good templates for pitch decks that you can orientate yourself on. The finished presentation is finally converted to PDF, as it is easy to open from anywhere.
Can Pitch Decks now completely replace the Business Plan? That depends. In modern and digital industries, the Pitch Deck is perfect for convincing investors. However, it is still worthwhile to have a business plan in store for deeper discussions and for your own clarity. If it is created in a short and crisp way, you don’t need as much time for it, and still have a clear plan that gives you structure and direction. In traditional industries or when requesting loans from banks, the business plan should definitely be used. Here, the pitch deck is rarely used and can be too modern. All in all, the Pitch Deck should motivate and make you want more of your business idea. You’ll also learn to focus on what’s essential to your business during creation.