Pitch Deck vs. Business Plan
At some point in your entrepreneurial or start-up journey, confusion regarding pitch decks and business plans will make an appearance. Questions like ‘What is the difference between pitch deck and business plan? ‘Which document needs my attention more?’ ‘Which one should be created first?’ ‘Which one should be sent first to the potential investors?’ and most importantly ‘What shall I include in each document?’ will be hovering around thus adding more to your confusion.
And…if this is you, then we need you to calm down.
We understand that being a start-up founder is not easy. There must be a lot on your plate. Therefore, we are here to help you figure out the difference between pitch deck and business plan in the smoothest manner and also figure out what to include in each document to help you get closer to meeting your goal.
What is a Business Plan?
Let’s begin with a simple question. Imagine you are about to purchase of, let’s say, some thousand dollars. Would you go and buy that product without doing some market research? Wouldn’t it annoy you when you are unable to find any information or review of the product?
This is exactly why you need a business plan. Do have a direction about your business and give that direction to the one who wants to know about your business.
To put it simply, a business plan is a document, text-based, around 50 – 100 something pages that includes everything about your business. This document is detailed, packed with information, made on Microsoft word or MS Note, and shared only when it is asked for after the deal is about to get finalized. Oh, and sometimes, a business plan is used as a reference document by founders, partners, and team members to reflect if everything is right on track or not?
What should a business plan include?
- A summary of your business
- Company objectives, goals, and vision
- Target market research
- Competitor analysis
- Product or service description
- Product development
- Organizational structure
- Sales and marketing strategies
- Financial projections
Many other things can be included in your business plan. But this depends on the stage your start-up or business is at. If your start-up is in its budding phases and an investor has asked for your new start-up business plan, then including the information above in a detailed manner is enough. If you are an established business, then your business plan shall include how your company has been doing things, your past and current sales, what each member of the team does and contributes and how are you achieving the goals and visions you so proudly wrote about in the related section.
Here’s the thing. A Business plan for start-ups just doesn’t happen in a day. It requires days and sometimes even months to bring a business plan to shape that activates the acceptance sensors of your potential investors and takes you a step closer to your start-up idea.
One last thing, there can be no pitch deck without a business plan! Yep, you read that right.
A Business plan is similar to a written recipe that you write with all your heart and mind so that your visual creation, your food, appeals to the eyes and taste buds of those who will taste it. One small mistake in the recipe (business plan) and BOOM! Your creation (Pitch deck presentation) shall suffer.
Now that we have shared what a business plan is and how a business plan for a start-up business should look like, let’s discuss the pitch deck it and pitch deck format!
What is a Pitch Deck?
Fun fact: In the early 1980’s, investors used to read painstakingly long business plans until one fine day in the late 2000’s they realized they don’t have time and, Tada!
The Pitch decks came into being.
To put it simply, a pitch deck is a summary, and that too a visual one, in the form of 10-15 slides created on PowerPoint, Prezi, or Keynote. A pitch deck helps your potential investors get an idea about who you are, what your company is, who your team members are and how will you utilize the funds they shall release for you! A Pitch deck is usually presented vocally via a pitch deck presentation or a pitch deck video. Other times, it is sent to investors via email or any other platform, when a face-to-face presentation is not possible.
What should a Pitch Deck include?
- Stunning graphics and visuals
- Colors as per the theme
- Summary
- Problem and its solution
- Market validation
- Business model
- Brief market and sales strategy
- Team
- Competitors
- Customer base
- Required funding
- Call to Action
Remember when we said there can be no pitch deck without a business plan? This is what we meant. Without thorough research, how can you put in the data and give your pitch the edge it needs?
A summary of everything we mentioned above cannot be curated unless thorough research is done about the start-up business plan. This also means that your pitch deck, besides being beautiful, must be investor-driven. It should let the investor know that a lot of research and brainwork has been done into producing the presentation. This shows commitment which is something investors are looking for.
Is it Really Business Plan vs. Pitch Deck?
Sorry to break your bubble, but no.
There is no competition both pitch deck presentation and business plan for start-up, complement each other. It is not just because the business plan writing phase helps you get that edge that you use during the pitch deck design phase. It is because, at any time of the day or even during a presentation, your potential investor can ask you to submit the business plan.
Do you think it would look nice not having the document prepared? Definitely a BIG NO!
If pitch deck is your first impression then your business plan is the last impression you make and trust us when we say this, the last impression counts, that too a lot!
If you are still confused about the major difference between pitch deck and business plan, a quick look at the table below will be super helpful.
| Pitch deck | Business Plan | |
|
Length |
10 – 15 slides | 50 – 100 pages document/file |
|
Mode of creation |
Prezi, Keynote or PowerPoint | Microsoft Word or Note |
| Presentation style | Vocally with attractive visuals, graphics and sometimes sound! | Text based document |
| Purpose | To present the company/start-up for an upcoming project for funding | To fully convince the investor to invest |
| Level of Research | A little less. Thanks to the business plan. | Extensive and thorough research is involved |
| Time | Usually sent to an investor before a meeting to help them know about your start-up in a few minutes! | Usually sent to an investor(s) when they specifically as for it. This can be during your pitch or after your pitch. |
Final words…
We hope that the information we have shared above will help you understand the difference between pitch deck and business plan. Always remember, both are resources that can help you seal the deal with your investor. So, whichever you begin working with, give it all the attention it needs.
If you have your business idea but building the pitch is proving to be a cumbersome task for you, then we recommend you reach out to the experts at Pitch Deck Edge and begin a conversation on your pitch deck design. Even if you have a business plan or not, we are going to swim in and extract the information and data to give you the edge you need to stand out from others.
Book a consultation with us today and we shall see you soon!