Let’s talk about pitch decks. As the name suggests, entrepreneurs use the pitch deck while seeking investments. While there are several theories on what makes an effective pitch deck, the most effective ones are simple and sharp. I know founders who get a pitch deck designed by third parties, but I believe the best pitch decks are the ones created by the founders themselves. Investors do not go by how creative a pitch deck is, but on the information and clarity of thought presented by the founders. Let’s look at the key elements that make for an effective pitch deck.
The title slide is key. Remember, attention spans are low and crisp messaging is essential. The title slide should carry a brand name and a one-line explanation of the business in simple words. So, if you are pitching a chain of tea shops, you could have a brand name like ‘Teaser Cafe’, with a simple tag line — ‘The widest selection of global teas’. Instantly, an investor knows that the venture is about a chain of tea cafes offering a good choice of teas from around the world. Most pitch decks do not use the title slide effectively.
The next few slides are very important. This is where you state the problem you are solving for the customer. There’s a running joke in the startup ecosystem that most startups are solutions looking for a problem. Sometimes, such an approach does scale well, like the 10-minute delivery apps, because until Zepto went hammer and tongs at this proposition, consumers in India probably never felt the need for groceries to reach them in 10 minutes. But that’s a rare success. It is always important to follow the fundamentals and first identify the problem you are solving. In the case of Teaser Cafes, the problem could be that young folks love hanging out with friends in tea shops, but only for short periods. If a tea cafe can offer consumers a wide range of teas to choose from, consumers are likely to spend more time and also come back more regularly.
The problem slide must be followed with the solution: Teaser Cafe will offer over 100 varieties of tea sourced from across the world. These teas will be prepared fresh and served hot with a choice of healthy and nutritious homemade cookies or snacks. Make sure you explain why your solution is superior to other solutions. In my book Failing to Succeed, I have written about the BFC theory. All products or services must compare against their competition and list out areas where their product/ service is better, faster or cheaper. If you score only on one parameter, you are vulnerable; if you score on two, you can compete effectively; and if you score on all three, you could be onto something special. Make no mistake, this is not easy to achieve because the competition is also following the same BFC theory and trying to go one-up. We shall continue with this topic next fortnight.
(The writer is a serial entrepreneur and best-selling author of the book ‘Failing to Succeed’; posts on X @vaitheek)