Startup Finances: Preparing for Pitch Deck Presentation

We have already learned a lot about startups and ways to generate finances. But as the business grows, it is probable to think about raising funds from markets or take loans. But this task is not so easy as now it’s time to explain to investors about your startup. You have to prepare the Powerpoint presentation called ‘Pitch Deck Presentation’. Meeting with potential investors can be face-to face or online.

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Pitch Deck Presetation( source Google)

Pitch Deck Presentation is generally a brief explanation about your business, its purpose, etc. All you need to consider is to maintain the quality of content while delivering it in short time. The length of presentation should not exceed from 20-25 Minutes. You need to give your audience(i.e. your potential investors) the reasons as to why they should invest in your startup business.

The presentation should be well-organised and prepared so as to make it interesting for audience to get involved in it. Here are some of the points to consider for must for preparation:

Introduction:

First of all, give a brief introduction of yourself. Tell about your position in company. Then you can deliver some interesting points about your company.

Team:

Now introduce your team members who are contributing in making your startup successful. An investor is not only putting their money on your startup, but also on your team. So they would be eager to know who are behind the scenes!

Business Model:

Business Model is a wide term for describing your business purpose, its infrastructure, target customers, sourcing, organisational culture, etc. Your investors would like to know about your startup and its prospects so as to come to any conclusion. You can explain your company’s past performance by giving some analytical records. Most common factor to judge efficiency or effectiveness of a business model is by calculating Gross Profit. It is calculated by subtracting all revenue expenses with revenue of business during the period.

Problems with their solutions:

You have set up this startup because you know what problems people or customers are facing with existing market culture. So you have launched any unique product or service to attract your customers. In your presentation, you should address the problems customers were facing. Also tell how your product or service is efficient to improve people’s lives. Display all the good facts about your product or service.

Marketing & Sales:

Investors are generally curious about how your company can promote your product or service. As a startup, it is difficult to attract large customer, as compared to any well-established company. Here it is important to manage dilligently with the circumstance. Tell about your present market size, target customers and their characteristics. Also explain how your company will attract and maintain good relations with customers.

Financial Projections:

Your investors are concerned about their returns. So you have to present your financial projections of past periods. If your company doesn’t have a longer history, then Projected Financial Projections can be prepared by taking help of any Financial Expert. Generally three documents are required for it:

  • Income Statement: It is prepared for displaying the past or probable expanses alongwith income generated or can be earned in future. For first year, Monthly projections are prepared. For subsequent periods, Quarterly or Annual projection records are made.
  • Cash Flow Statement: Cash Flow Statement describes the incoming or outgoing of cash during the period. Cash in business displays the amount of liquid assets with business. Liquid assets are needed for both routine and urgent expenses in business.
  • Balance Sheet: It displays the overall performance of business during the period. All the Assets and Liabilities are shown with their values as on the end of period. It helps in analytical comparison of business in different periods.

Financing Report:

When any business starts, it is quiet difficult to raise funds from External sources or to take loan. Instead there are many other methods to generate funds like investing own funds, borrowing from known people, etc. Read my previous post to know in detail about various ways to generate funds.

Investors are interested in investing in those business which are set up by owner’s own funds. In presentation, you need to tell about amount of work done from money allocated from various sources. In case of finances raised from external sources, convey how much funds are utilised till present and where.

So this is the way to prepare your presentation. Hope you liked it. Please share your any thoughts in comment section below. Also Follow this Blog to get regular updates in your mail id.