90% of startups fail mainly due to poor resource management, while 29% of them run out of cash and 82% struggle with cash flow management. This is why having a clear operational plan is crucial for running the business successfully. Let us understand more about business plans and pitch decks below.
What is a business plan?
A business plan is a detailed document that comprises the operational and financial plans for the business and explains how the goals will be achieved. It acts like a roadmap for a business and is used while pitching to convince investors or financial institutions to provide capital funds to start the business.
It contains the following elements: a title page, an executive summary, an industry overview, a competitor analysis, a marketing and sales plan, a management plan, an operational plan and a financial plan. It helps the company create a reference plan that they can use to state their goals, how and when they plan to achieve them for growth.
This also lets them give extra focus to specific areas where attention is required. Additionally, it helps them make better decisions, lowers risk and improves market understanding. However, common misconceptions about business plans are that they are needed only for startups, unnecessary if funding isn’t required and must be long and detailed.
What is a pitch deck?
A pitch deck is a succinct presentation that aims to give an overview of your business plan to the audience. It includes vital aspects such as the company’s mission, market opportunity, business model, financial details and competition. It is usually 15-24 slides in length and should present the company’s journey. The core purpose of a pitch deck is to convince investors of the feasibility and potential growth of the business.
Some benefits of preparing a pitch deck include clarifying your idea, building credibility, communicating effectively with stakeholders, and making a strong visual impact. Misconceptions include making the market opportunity section too complex, not presenting the product effectively, and emphasising storytelling over the key details.
How to create a business plan?
1. Cover page
It is a tiny but vital section that should include the name of the business and contact information.
2. Table of contents
It is meant to help readers quickly find the topic they are most interested in.
3. Executive summary
It is a formal and concise description of the company, the position it aspires to reach, and how it plans to succeed. Maximum length should ideally be one page, and it must include the company’s mission, an industry and market description, the company’s uniqueness, and its competitive advantages.
4. Business description
This is essentially an overview of your proposed business. The objective is to make owners understand the business idea and value proposition easily.
5. Industry background
Give past and present data on the size, shape, trends and important features of the industry you are attempting to enter. Mention the industry, outlook, competitors and entry barriers.
6. Competitive analysis
Make an analysis with prospective and potential rivals and competitors, their strengths and weaknesses, your points of differentiation and competitive outlook for the industry.
7. Market analysis
Concentrate on your customers, needs, likes and demographics. The objective is to show that there is a chance for your business in the market.
8. Management summary
Introduce your team and explain how they are going to carry out your idea. Businesses are inherently risky, so when you can showcase the skills, knowledge and ability for teamwork, it will gain the trust of investors.
9. Operations plan
Concentrate on your day-to-day operations and the strategies that drive them. Show complex data like the breakeven point, supply source or the distribution process in visual form through charts, tables or graphs.
10. Marketing plan
Explain your strategy for how you will sell your offering. Focus on the opportunity your business offers and on consumer behaviour, as these are key elements of a successful marketing strategy. Identify the value customers are bringing to your business.
11. Financial plan
Include current and projected financial performance, with the income statement forecasting the business for the next 3-5 years. The cash flow statement should demonstrate how effectively the company converts profits into cash.
12. Attachments
Include all additional documents that can give relevant information to the business plan.
How to create a pitch deck?
1. Introduction
This slide must describe what your business does in 5-7 words. It must be concise and effortless to read. Also include the presenter’s name and contact details. This forms the cover slide. You can include another slide to gain attention by presenting your most impressive business achievements.
2. Status quo section
This describes the business problem that users may have right in front of them, but are unable to identify. But you have to tread carefully, else it may not appear convincing. There are some instances, like mobile games, where you don't have to solve a problem but address a business opportunity that has emerged.
3. Solution section
This works like a complement to the business problem slide, where you focus on a single crucial statement, i.e., the ultimate result, the core benefit of your offering. Basically, you focus on the what, not how.
4. Product section
There are multiple things that you address in this section. You will describe the uniqueness of your offering through a demo video, diagrammatic guide or even product screenshots. Focus on the benefits for the user and what convenience it brings to the lives of the target customers. If your product has technological infrastructure as a differentiation point, you can have a slide that lucidly explains how it benefits your end user.
You also need to have a market validation slide, especially if product adoption is challenging. Include a slide on your target audience, as this proves your grasp of the basics clearly. It helps gain insights into the user and work on refining market adoption. Two more things you will need to add are the business model slide and roadmap. For the former, you will need to describe plans and their features if it is a subscription model, details on price, average size and 2-3 sources of revenue. The latter needs to show key milestones in the development of your product, company history, and where you intend to reach in the upcoming months. This is especially relevant for medical and hardware companies, which take a long time to generate revenue.
5. Market section
This should include two main parts - the GTM strategy and information on market size. The GTM, or go-to-market strategy slide, should describe 2-3 specific channels you have used and plan to continue using for customer growth. Explain how you reached the position, what is promising enough about your current work and what you will do next. Funding typically covers 18-24 months of operations, hence you have to focus on how the company will grow till the next funding round. The market size slide will describe how huge the company will get. You will present the Total Addressable Market (TAM), which will also provide information on the revenue your company could make if it reached all target customers.
6. Why us section
In this section, you will summarise your main competitors, talk about your team and your competitive advantage. Focus on your one core understanding that competitors might have missed.
7. The ask section
This is where you provide the previous 12 months of financial data and make projections for the upcoming 3-5 years. You may also need to perform financial modelling. This will be one slide followed by a slide where you explicitly say how much money you are raising and provide information on the next funding milestone.
At the end of the day, no matter how innovative or groundbreaking your idea is, success comes from clarity and planning. A business plan helps you chart a path forward, make informed decisions and anticipate challenges, while a pitch deck brings your vision to life, capturing the attention of investors and stakeholders. Together, they turn your ideas into actionable strategies, making sure your business isn’t just a concept, but a venture built to grow, sustain and succeed.
