Where Does the Business Model Slide Go in a Pitch Deck?

By Alejandro Cremades

Looking for funding for your startup? Developing a killer pitch deck is essential to get funding, even if you use safe notes, and it needs to be perfect. A pitch deck is a short presentation that gives investors a clear overview of your company. The intention of your pitch deck is to showcase your product, introduce the team, and present your financials and business model.

As an entrepreneur, you understand how important a business model is. It includes your entire plan to make money, and if done efficiently, investors will be hopping on the bandwagon and giving you their money.

What is a Business Model?

Zooming out, the business plan is your company’s plan from A-Z on making money. There are three essential elements of a business plan that can make or break your pitch deck. These include:

1. Product: Offering an accurate description of your product. It is also helpful if you can include screenshots and a prototype.
2. Target market: Knowing precisely who you are selling to will show investors that you’ve done your research and know the audience. Justify how your prices fit into the target market.
3. Expenses: Describe all your current and expected expenses of the company.

The business model in this context is how your business works. How does it operate, specifically when it comes to making money.

The Business Model Slide of a Pitch Deck

The content of the business model slide should provide an overview of your revenue streams and pricing model. Ask the following questions: How will your company generate income? How much do you expect to make? Which of your products or services will ensure that you reach your target audience?

Company stage

If you spend a lot of time on resources, research and development, then the company stage will be the focus on the business model slide. However, part of the company stage also includes product development, so instead, shift the focus to business development. Finally, express how your company plans to become a consumer supported company. Investors don’t expect you to have each step completely figured out, a business can take years to develop. They want to know that you have done your research and that you have an outline for each step of the way.

Clearly identify which stage of development you are currently in and how the company is being managed. Investors know each and every stage of development and understand how long it will take. It could be years or months. Each stage differs.

Product development

There are various stages to product development, such as concept testing, market analysis, test marketing, and commercialization. Investors need to know how you earn revenue through these different stages. This shows them that you are not completely dependent on their capital which ultimately reduces this risk factor.

Revenue model

The revenue model continuously changes over time. Provide a step-by-step plan on where your income will be coming from for the next couple of years along with a 5-year projection. Even though you have a financial slide, you will still need to address revenue, earnings before interest, net income, cost of goods sold, and describe your pricing strategy.

About the Author

Alejandro Cremades is a serial entrepreneur and the author of The Art of Startup Fundraising. With a foreword by ‘Shark Tank‘ star Barbara Corcoran, and published by John Wiley & Sons, the book was named one of the best books for entrepreneurs. The book offers a step-by-step guide to today‘s way of raising money for entrepreneurs. Most recently, Alejandro built and exited CoFoundersLab which is one of the largest communities of founders online. Prior to CoFoundersLab, Alejandro worked as a lawyer at King & Spalding where he was involved in one of the biggest investment arbitration cases in history ($113 billion at stake). Alejandro is an active speaker and has given guest lectures at the Wharton School of Business, Columbia Business School, and NYU Stern School of Business. Alejandro has been involved with the JOBS Act since inception and was invited to the White House and the US House of Representatives to provide his stands on the new regulatory changes concerning fundraising online.