What is a Pitch Deck?
Pitch Deck vs Business Plan: A Pitch Deck is a brief presentation that gives an overview of the business to potential investors. The pitch deck is sent to the investors to get them interested in taking a meeting with the entrepreneur, or it can be used as a visual aid during presentations. The presentation can contain anywhere from 10-20 slides. A pitch deck often lays out clear go-to-market strategies and explores future opportunities. It relies on researching the industry and having an understanding of the business plan for launch and growth. To read more about pitch decks, please read our detailed article: What is a Pitch Decks?
What is a Business Plan?
A business plan is the company’s detailed analysis of a given business idea. It is about what the company does, how things are going, and what the future plans are. A business plan can be as long as 10 to 100 pages. It has two functions:
- It is sent to the investors so they gain information about the company.
- It can be used later on as a reference to see if things are going on track.
To read more about business plans you can read our detailed article: Business Plans: Your Business Identity.
Pitch Deck vs Business Plan: Why?
Pitch deck vs business plan: Which one should you make? The simple answer, both. A pitch deck and a business plan both have a different use, therefore, both of them should be treated differently. A pitch deck gives the potential investor, partner, or client the basic information about the company. Since the business plan takes a long time to read, a pitch deck is sent to entice a potential investor.
A business plan is sent only when it is asked for explicitly.
Pitch Deck vs Business Plan: Differences
A pitch deck is sent over when a meeting with an investor is going to be held. Whereas a business plan is sent over when the investor considers the investment or when the investor explicitly asks for it.
In terms of the
length a pitch deck has 10-20 slides whereas a business plan has 10-100 pages.
A pitch deck is created using a PowerPoint, Prezi, or Keynote. The text on the slides is minimized, and a good number of visuals are used. However, a business plan is usually created in a text editor and is packed with information.
The pitch deck is highly visual and the business plan is highly text-based.
Pitch Deck vs Business Plan: When?
A pitch deck can be sent early in the process to the investors. However, a business plan isn’t sent too often. A business plan is a reference guide for the company itself and for cases when an investor asks for it.
Remember, banks will always ask for a business plan/feasibility report before granting loans.
When do you need a Pitch Deck?
- A clear pitch deck is needed when looking for funding from venture capitalists, angel investors, friends, and family.
- In order to build influential relationships, it is important to make a good first impression. Therefore, a pitch deck should be ready when networking with investors.
- The concept can be clearly conveyed through a pitch deck when seeking cofounders.
- In order to apply many accelerators require a pitch deck. In order for the company to be evaluated and to decide whether or not it can join the next cohort.
When do you need a Business Plan?
- When seeking debt financing, a business plan is needed for the bank to review. This is paramount to being able to get a loan from a formal financial institution.
- When raising a lot of money, it is better to have a plan for how the proceeds will be utilized. This level of detail can never be provided in a pitch deck.
- It is helpful to have a written and agreed-upon plan when having co-founders/co-owners. This way everyone can stay on track and execute according to a pre-agreed plan. The business plan should be updated over time and as goals are met.
What is more important: Pitch Deck vs Business Plan?
Since a pitch deck is sent more often than a business plan, it can be said that a pitch deck is more important. However, a pitch deck is usually created after the business plan is finalized. The business plan works as the foundation for the pitch deck, and therefore, both of them are equally important.
With over 2000+ business plans and pitch decks created, Sentient Solutions professional team can help you get your war chest setup. Try our free consultation.
