What is the difference between a pitch deck and a business plan?” has probably crossed your mind at some point in your career as an entrepreneur, whether you’re just starting out or whether you’re a successful entrepreneur. What’s the most effective strategy for your start-up? Is it really necessary to have either one? Questions like this are critical that you are asking. Especially when you’re creating and expanding a business and you’ve got a limited amount of time. Prior to answering these questions, let’s go through what a pitch deck and a business plan are.
What is a Pitch Deck?
A pitch deck is a visual presentation consisting of 10 to 20 slides that give investors an overview of the company’s business plan. An investor’s initial exposure to an organization is generally through a presentation like this. In many respects, the investor’s first impression of a firm is critical.
In other words, Pitch decks are used to introduce a company to potential investors and provide them a basic overview of its operations. As a bonus, it makes it easier to communicate simply and clearly about a company’s products, services, and the market in which they operate.
Pitch Deck acts as an essential tool to attract investors. It also sets out market tactics, looks at future prospects, and describes your business strategy. In addition, a solid pitch deck aims to convey your research and insights in the most aesthetically beautiful manner possible.
Investors may see how far you’ve come, where you are now, and where you plan to be in the future by looking at your financial information in the pitch deck.
What is a Business Plan?
A business plan is a thorough explanation of your company’s operations. structure, operation, and expansion of your new company are all outlined in this document. It is designed to store and convey your ideas for the following one, three, or five years, as well as your research into the industry and the competition. It includes the sales forecast, the marketing strategy, and operational strategies.
The majority of the information is conveyed by plain text, although charts and graphs are also used to illustrate growth and financial strategy. A typical business plan is 10 to 100 pages long. Nobody has the time to read a 100-page paper, so you need to make it concise but well-organized.
As a result, it’s a well-researched document that covers all aspects of your organization, from marketing to financing, in great depth. It also contains information about your long-term goals of the organization.
A thorough investigation of your company and the industry in which it operates is also an important component of the business plan. SAS an added benefit, the business plan describes the inner workings of senior management, what each individual contributes to the table, and how the company plans to achieve its goals
Know the difference b/w Pitch Deck and Business Plan
|Criteria||Pitch Deck||Business Plan|
|Length:||10 – 15 Slides of Presentation||Document of over 50-100 pages|
|Mode:||Via Powerpoint, Prezi or Keynote||Usually a Word File|
|Representation:||Heavily Visual in nature||Mostly text-based|
|Goal:||Helps introduce the company||Helps convince the investor to invest|
|Purpose:||Serves as a Summary||Serves as a fool-proof research|
|Time frame:||Usually during the introductory phase||Traditionally used during the due diligence process before finalizing a deal|
|Research:||Requires little research||Requires extensive research|
|Occurrence:||Might be Based on the business plan||Independent document and can be created without Pitch Deck|
|Implementation:||Vocally implemented via a presentation||Verbally implemented as it is read by the investors|
|When you Need Them:||Networking with potential investors in order to meet with an investor, or to acquire an introduction to begin a dialogue about financing||Finalize an agreement while seeking loans, and if you wish to add co-founders, whenever you need a substantial sum of money.|
Download E-Startup Mobile App and Never miss the latest updates narrating to your business.