By Ananya Singh and Saiyam Jain
The most important thing for a new business is acquiring the required amount of capital to kick start its operations. Capital acquisition can be done via various modes. If it’s a small business, then the capital contribution can be made by the entrepreneur himself, his friends and family or by angel investors, NGOs, banks, private investors and so on. Big businesses/companies generally opt for debt and equity capital, which is basically an investment made by the people by buying the shares and debentures of the company, in expectation of a good return on the investment made by them. Thus, in short it can be said that for raising the capital of a company, small or big, one needs to convince the investors by pitching their business idea to the potential investors. The art of effective pitching isn’t difficult; a person looking for investments must tactfully approach the potential investors. This process of pitching can be undertaken face to face with the potential investors, or by sending a mail to them or, via their website. The online pitching process can be initiated by a ‘Pitch Deck’.
A pitch deck is a brief presentation that is used to provide the audience with a quick and easy overview of the business plan. This presentation generally has a basic structure: a cover, the problem the business wishes to solve, the solution to that problem, product demo, market size that the business aims at achieving, the basic business model, its competitors, the underlying magic or the USP, the team, milestones (if the business is looking for further investment, apart from the initial investment), and finally the fund-raising information. This structure helps the audience in getting a good idea about the whole business plan. Potential investors can easily analyse the potential and the future of the business.
The pitch deck can therefore be called as the foundation of a strong future financial position of the company. Effective pitch will result in favourable investment, which will exhilarate the growth of the business. Therefore, it is important to have an impactful pitch deck. Here are the 5 Golden Rules that can help you elevate your pitch deck:
Do it Maggi style!
Humans generally have a short span of concentration. Now since the pitch is the most important thing for a business, it is imperative that the pitch is completed within 2 minutes. The business plan should be condensed to a delectable presentation of not more than 20 slides. Also, the language used should be simple and effective. Don’t beat around the bush! You’re already crunched for time, use it wisely.
The pitch that you present should be tailor made according to the audience you’re presenting it to. Though when the pitch is altered, it should not lose the basic essence of the original business plan. You should stand by whatever you state, and you should emphasise and be assertive over the plans that you propose. It instills a feeling of confidence for the plan amongst the audience.
Address the problem and the solution.
The problem that the company aims to solve should be simply stated in preferably a single statement. This statement can be accompanied by statistics that are easy to understand. The problem should be stated in terms so simple that a five-year-old child can also understand it! The solution to this problem is YOU and YOUR COMPANY. Therefore, the emphasis should be on your company and its products/services; the core functions, and benefits of the product and the company.
The magic potion or the unique selling proposition (USP) gives an edge to your product or service. As you might not be the only one catering to the aforementioned problem, there is a need to stand out in the eyes of the audience. You need to clearly state the differences between your business and your competitors. Also, state the reasons why your company is better than the others. This whole idea can be attractively presented to the audience by way of a storytelling technique. It’s the main selling point, if you get this right the ball is surely in your court.
This is the time when you can add your personal touch to the pitch. Tell the audience your story of how you decided on catering to that particular problem, and how effective can your proposed solution be. You have the chance of personally bonding with the audience, which will increase the chances of the audience being interested in investing in your business plan.
These were the 5 Golden Rules, and we hope that these will help you in creating an effective pitch deck.