Both terms – Business Plan and Pitch Deck– may seem similar but they are two absolutely different documents. However, on the grand scale, both are used in the context of seeking investments, specifically angel investments.
Before we start the big business plan vs. pitch deck comparison, we need to understand some basic information.
What is a Business Plan?
According to entrepreneur.com, a business plan is a written description of your business’s future. That’s all there is to it – a document that describes what you plan to do and how you plan to do it. If you jot down a paragraph on a piece of paper describing your business strategy, you’ve written a plan, or at least the idea of a plan.
So, a business plan is simply the super-set of data about your business – encompassing the business model, your financial projections, and all other details about customer outreach, customer service, operations.
It is a collection of bullet points, lists, and tables layout for strategy and tactics, plus lists of assumptions, milestones, metrics, tasks; and projected sales, spending, and cash flow of the business.
Many people think of a business plan as a long document describing the business, which tends to take too much time to create, and remains static. But you can actually have a lean business plan that gets reviewed and revised periodically, so it stays short and fresh.
It has all these key elements:
1. Executive summary
2. Unique selling advantage
3. Organisational vision and mission statements
4. Market analysis
5. Competition analysis
6. Vulnerability audit
7. Marketing plan/Product launch
8. Manpower plan
9. Financial analysis (usually for 12 months)
10. Sensitivity analysis
11. Contingency plan
12. Game plan for at least 12 months
A good business plan has the following characteristics:
A business plan is a more detailed document of between 10 and 100 pages consisting of all the details of your business and financial projections.
Business plans are usually prepared in word format.
Business plans are sent when an investor considers an investment or when someone explicitly asks for it.
What is a Pitch Deck?
A pitch deck is a presentation/ deck of slides that one brings to potential investors. The pitch deck is an effective summary of the key items in the business plan, and includes details about what you intend doing with the funds you are asking the investor for.
It is a short, visual breakdown of your business model. It is usually created in PowerPoint, Google Slides or Keynote and delivered in a PDF format. Your pitch should tell a story; it should excite potential investors, giving them the information they need to decide whether to risk their capital on your startup.
Creative and flexible, a pitch deck can be quickly revised, making it easy to adjust the business model to the needs of a changing market or tailor the pitch to specific investors.
It should at least cover these topics:
- Business model
A good pitch deck should have the following characteristics:
It should be short, between 10 to 12 slides containing succinct summaries of your main points and why your business is a good match for this specific investor. Supporting documents, i.e., financials and management bios can go in an appendix.
A pitch deck is made up visual presentations in PowerPoint, Google or Keynote slides.
Pitch decks are sent when you want to meet an investor, partner or client.
Simply put, a Pitch Deck is actually the summary of a Business Plan.
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