Pitch Deck Vs. Business Plan: Which One Do You Need to Secure Funding?

Pitch deck vs. business plan: which is suitable for sharing an idea and convincing? “How do you effectively communicate your vision?” is a question many founders ask themselves and struggle with the answer while starting a new or expanding their business. Tools to do so are the pitch deck and the business plan.

They are important yet serve different purposes and are implemented during different stages in your startup journey. As such, it is crucial to know their differences and when to use them appropriately. This will help you maximize the use of each tool and ensure that you impress investors and warm their hearts to fund your venture. Let’s take a closer look at the pitch deck and business plan to help determine which one you need to obtain funding for your business.

Pitch deck

A professional pitch deck is a concise and eye-catching presentation that gives a glimpse of your business idea. It is the initial impression that prospective investors get from your startup and is mainly used to attract and provoke their interest. The purpose of a pitch deck is to create excitement and stimulate additional conversations without giving all the details. It answers questions like:

• What problem does your proposal aim to solve?
• How does your service or product uniquely address the issue and fill the market gap?
• What is your target market’s size and reach?
• How are you going to earn money?
• So far, how far along are you?
• Do you have a reliable and self-driven team?
• How do you intend to utilize the capital, and what are your projections?

The pitch deck’s primary function is to capture attention. Your pitch deck must be brief, engaging, and persuasive to capture investors’ attention. Ensure it highlights the most critical aspects of your business as they receive several proposals daily. The idea is to help investors quickly grasp your vision and the potential return on their investment. As such, you must have a well-structured and appealing pitch deck that tells a story to serve its purpose. In that case, acquiring professional services when designing can be a smart move.  Visit site that offers full pitch deck service to ensure the right design is used and key pointers are captured in a better illustrative way.

When to use a pitch deck

• Investors pitch – When meeting with accelerators, angel investors, or venture capitalists, make an investor pitch.
• Networking events – Engaging and brief presentations to possible collaborators.
• Demo days and contests – Concise and gripping narratives.

Pitch deck pros

• Brief and captivating: Due to investors’ hectic schedules, they favor brief, eye-catching presentations.
• Adaptable and flexible: Able to be changed for various audiences.
• Promotes conversation: Encourages investors to strike up discussions and pose inquiries.
• Fast delivery: Perfect for brief meetings.

Business plan

Every aspect of your company is described in detail in a business plan. It gives prospective investors and stakeholders a thorough understanding of your:

• Strategy,
• Market analysis,
• Operational structure and
• Financial projections.

It functions similarly to a roadmap as it includes the following key elements:

• Executive summary — A summary of your business and its goal.
• Business description: Describes the business model / what separates it from the competition and its aims and objectives.
• Market analysis: Tells how much you know about your industry, target market, and competition.
• Organization and management: Information about your team and organizational structure.
• Product or service line: A description of what you sell or provide, such as how you fill gaps in the market.
• Marketing and sales strategy: How you plan to attract and retain customers.
• Funding request: The money you need to execute and how you plan to use it.
• Financial projections: Detailed revenue, profit, and cash flow forecasts.
• Appendices: Supplementary materials, such as resumes, permits, or additional data.

When a business plan should be used

• Loan applications: Banks and other financial institutions need comprehensive information before loaning.
• Serious investors: Particularly in more established sectors, some investors favor copious documentation.
• Grant applications: Comprehensive business plans are necessary for many grant programs.
• Internal planning: Used to guide business growth and conduct strategic planning.

Benefits of a business plan

• Comprehensive analysis as it offers a thorough road map for company success.
• Having financial credibility is crucial for getting grants or loans.
• A tool for strategic planning that aids founders in maintaining focus on long-term objectives.
• Investor confidence is demonstrated by careful planning and investigation.

Although they may have different functions, a pitch deck and business plan are essential for obtaining capital. A business plan provides investors with the in-depth information about your business idea required to make serious commitments. At the same time, a pitch deck serves as your first hook, intended to stimulate interest and initiate discussions. Utilizing these tools depends on how much you want funding and success, meaning you must understand and familiarize yourself with each tool’s advantages and strategically use them.