Pitch Deck vs. Business Plan
As a startup founder, you've got a groundbreaking idea that you believe can change the world. But how do you communicate that vision to potential investors, mentors, or co-founders? That's where a pitch deck vs business plan comes in. While both are essential tools for any entrepreneur, they serve distinct purposes. The Pitch Deck serves as the tool by which investment is obtained, but the content of the pitch deck comes from the business plan itself. In this article, we'll break down the differences between a pitch deck and a business plan and provide you with actionable tips to create a compelling pitch that will get you the support you need.
The Business Plan: A Roadmap for Success
While a pitch deck is designed to capture the attention of potential investors or partners, a business plan is a more comprehensive document that outlines the operational and financial details of your startup. It's a roadmap for how you plan to turn your idea into a profitable venture.
A business plan typically includes:
Executive summary
Company description
Market analysis
Competitive analysis
Product or service description
Marketing and sales strategy
Operations plan
Financial projections
According to a study by the University of Oregon, businesses with a formal written plan are 16% more likely to achieve viability than those without a plan. A well-crafted business plan not only helps you secure funding but also serves as a guide for your team as you navigate the challenges of launching and growing your startup.
Understanding the Pitch Deck
A pitch deck (vs business plan) is a presentation that is used to whet the appetite of a prospective investor, mentor or co-founder who might be interested in the opportunity (or deal) you are offering. There are two distinctive types of pitch deck.
The first is a longer presentation with more words per slide that can be sent unaccompanied and will be reviewed within on average 3 minutes and 44 seconds! This type of pitch deck is designed to provide a comprehensive overview of your business idea, market opportunity, and growth potential. It's a standalone document that should be able to convey your message effectively, even if you're not there to present it in person.
The second type of pitch deck is a shorter presentation which is built for the purpose of being accompanied by your verbal script when pitching to a live audience or creating a video pitch. This version is more focused on the key highlights of your business, with fewer words per slide and more impactful visuals.
Great communication starts out long and messy and whilst it might sound counterintuitive to create the longer pitch deck before the shorter one, it’s a tried and tested technique used by creative writers the world over.
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It's much harder to write a short paragraph to capture the full essence of your idea, than it is to write pages of information explaining every inch of what's in your head. Once down on paper, it then becomes an iterative process that requires strategic thinking and clear communication to craft that into a short and powerful encapsulation of your idea delivered as a short pitch deck.
As a startup founder, you need to immerse yourself in the process of first exploring, then expressing the commercial viability of your idea. This is where the business plan comes into play. Crafting short, succinct articulations takes time, and it doesn't just come from sitting down with a piece of paper and trying to write it. It comes from immersing yourself in a strategic thinking process that enables you to not only put together a few slides – but instead craft a compelling narrative that showcases the potential of your business.
‘Pitch’ is really a shortened version of ‘sales pitch’. It’s the way we package our idea into a concise presentation of the total business idea. A pitch deck vs. business plan is where misunderstanding can come in.
Having a pitch doesn’t just mean creating a pitch deck, it means first having a business plan for how to take the core concept, or business idea, and turn it into a viable commercial reality.
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Putting it All Together
Creating a pitch deck and a business plan are both essential steps in the entrepreneurial journey. While a pitch deck is designed to generate interest and excitement around your idea, a business plan provides the details and strategic thinking necessary to turn that idea into a successful venture.
As a startup founder, it's important to understand the difference between a pitch deck vs business plan and to approach both documents with a clear understanding of your audience and purpose. Your pitch deck should be concise, visually appealing, and focused on the key highlights of your business. Your business plan, on the other hand, should be thorough, well-researched, and demonstrate a clear path to profitability.
Remember, building a successful startup takes time, effort, and persistence. But with the right tools and mindset, you can turn your vision into a reality. So, get started on your pitch deck and business plan today and take the first step towards making your entrepreneurial dreams come true.
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