Is a Pitch Deck the Same as a Business Plan?

Last Updated at: July 10, 2020
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Is a Pitch Deck the Same as a Business Plan

“Is a Pitch Deck exactly like a Business Plan?” This is a frequent doubt that several entrepreneurs have when they are planning to raise funds for their business. Entrepreneurs who are just starting out need to have both these in place to get the right investors to back them. So how are these two connected, and what makes them different from each other? Here’s a look at everything you need to know about how a pitch deck is different from a business plan, and why they are essential.

  1. What is a pitch deck for startups?

  2. What is a business plan?

  3. Is a Pitch Deck exactly like a Business Plan

  4. When are they used?

  5. Best Practises To Keep in Mind

What is a pitch deck for startups?

A business pitch deck is a visual representation that summarises various aspects of the business. It serves as an introduction to the business model and comprises several slides. Further, it acts as a visual tool that helps investors understand the basic concepts that help the company run. It is generally used by entrepreneurs to pique interest and get a second meeting with the investors.

What is a business plan?

A business plan is generally a more detailed description of the company. It explains in detail how the company functions, what it does, and what its plans are. Usually, business plans are highly textual and can be around 50-60 pages long.

Is a Pitch Deck exactly like a Business Plan

No, as you can see from the basic definition, a pitch deck is not the same as a business plan. In certain ways, we can say that a pitch deck may be derived from a business plan. While the latter is a more comprehensive document that contains all details, the former holds only very vital information. Both of them are used in different stages of the fundraising journey and serve different purposes. Both of them are essential to get funding as they are vital parts of the fundraising process.

When are they used?

Pitch Deck for Startups

Pitch deck for investors is generally used as the first step or connecting link between an entrepreneur and an investor. It is the primary tool the entrepreneur uses to introduce their idea to the investor. Therefore, it needs to be short, concise, and clear, as it helps the investor form their first impression. Also, since it is only an introduction, it does not have to include all the business details. When you are meeting with the investor for the first time, discretion and subtlety is key. 

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Business Plan Format

However, a business plan should contain all the information about your company. It must be so comprehensive that it can serve as a reference guide for yourself to ensure that you are still on track for achieving your goals. The plan must include everything, from essential metrics to goals for the future. So, the business plan format you adopt should have space to efficiently handle all these details. 

Best Practises To Keep in Mind

Tips For the Best Pitch Deck Template

  1. Since the chances of you sending a pitch deck to a potential investor are ten times greater than of you sending a business plan, make sure your deck stands out.
  2. Do not overdo the number of slides, and stick within the acceptable range of 10-12 slides.
  3. Try to minimise textual content and add more visual tools to make the deck more readable.
  4. You can use Prezi, Powerpoint, or Keynote to make your pitch deck templates.
  5. Use hard data from your business plan to validate and substantiate your pitch deck claims.

How to Create a Great Business Plan Template

  • Business plans come into play at the stage of due diligence.
  • Describe every aspect of your company in great detail. Make sure you do enough market research to gather the data required to create the necessary metrics.
  • Most business plans are around 50-100 pages and are made as a Word document. 
  • Make sure you add projections for the next 5 years, and also explicitly describe how you plan on growing and scaling your business. Also, mention how you will use the money you raise.
  • Add details regarding your management team, the unique skills they possess, what they bring to the table, and why they are so great. The investor must find your team to be credible and well-put-together after going through this document. 

Investors see pitches almost every day, and so, you need to make an impact to get them interested in your company. That said, even the best pitch won’t get you any funding unless you have a well-researched business plan backing that pitch. While pitch decks work as teasers, your business plan helps you build the narrative. Therefore, make sure you put enough thought into them and create decks and plans that blow your investors away!

 

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Is a Pitch Deck the Same as a Business Plan?

116

“Is a Pitch Deck exactly like a Business Plan?” This is a frequent doubt that several entrepreneurs have when they are planning to raise funds for their business. Entrepreneurs who are just starting out need to have both these in place to get the right investors to back them. So how are these two connected, and what makes them different from each other? Here’s a look at everything you need to know about how a pitch deck is different from a business plan, and why they are essential.

  1. What is a pitch deck for startups?

  2. What is a business plan?

  3. Is a Pitch Deck exactly like a Business Plan

  4. When are they used?

  5. Best Practises To Keep in Mind

What is a pitch deck for startups?

A business pitch deck is a visual representation that summarises various aspects of the business. It serves as an introduction to the business model and comprises several slides. Further, it acts as a visual tool that helps investors understand the basic concepts that help the company run. It is generally used by entrepreneurs to pique interest and get a second meeting with the investors.

What is a business plan?

A business plan is generally a more detailed description of the company. It explains in detail how the company functions, what it does, and what its plans are. Usually, business plans are highly textual and can be around 50-60 pages long.

Is a Pitch Deck exactly like a Business Plan

No, as you can see from the basic definition, a pitch deck is not the same as a business plan. In certain ways, we can say that a pitch deck may be derived from a business plan. While the latter is a more comprehensive document that contains all details, the former holds only very vital information. Both of them are used in different stages of the fundraising journey and serve different purposes. Both of them are essential to get funding as they are vital parts of the fundraising process.

When are they used?

Pitch Deck for Startups

Pitch deck for investors is generally used as the first step or connecting link between an entrepreneur and an investor. It is the primary tool the entrepreneur uses to introduce their idea to the investor. Therefore, it needs to be short, concise, and clear, as it helps the investor form their first impression. Also, since it is only an introduction, it does not have to include all the business details. When you are meeting with the investor for the first time, discretion and subtlety is key. 

Ask for Free Legal Advice

Business Plan Format

However, a business plan should contain all the information about your company. It must be so comprehensive that it can serve as a reference guide for yourself to ensure that you are still on track for achieving your goals. The plan must include everything, from essential metrics to goals for the future. So, the business plan format you adopt should have space to efficiently handle all these details. 

Best Practises To Keep in Mind

Tips For the Best Pitch Deck Template

  1. Since the chances of you sending a pitch deck to a potential investor are ten times greater than of you sending a business plan, make sure your deck stands out.
  2. Do not overdo the number of slides, and stick within the acceptable range of 10-12 slides.
  3. Try to minimise textual content and add more visual tools to make the deck more readable.
  4. You can use Prezi, Powerpoint, or Keynote to make your pitch deck templates.
  5. Use hard data from your business plan to validate and substantiate your pitch deck claims.

How to Create a Great Business Plan Template

  • Business plans come into play at the stage of due diligence.
  • Describe every aspect of your company in great detail. Make sure you do enough market research to gather the data required to create the necessary metrics.
  • Most business plans are around 50-100 pages and are made as a Word document. 
  • Make sure you add projections for the next 5 years, and also explicitly describe how you plan on growing and scaling your business. Also, mention how you will use the money you raise.
  • Add details regarding your management team, the unique skills they possess, what they bring to the table, and why they are so great. The investor must find your team to be credible and well-put-together after going through this document. 

Investors see pitches almost every day, and so, you need to make an impact to get them interested in your company. That said, even the best pitch won’t get you any funding unless you have a well-researched business plan backing that pitch. While pitch decks work as teasers, your business plan helps you build the narrative. Therefore, make sure you put enough thought into them and create decks and plans that blow your investors away!

 

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