Business models and pitch decks can often be daunting for many when first starting out. So I want to demystify these concepts, what we at KY Pitch and ultimately Investors are looking for.
1) Talk about pain & how you solve it
All great pitch decks and business models include a story that guides the reader from the problem to the solution to massive scale and success. Be sure to talk about the initial problem your product solves.
How did you come across it? Why are you solving it? Why is your approach the strongest one?
2) Have a massive idea and make it 10X bigger.
Having a intriguing and massive vision for your company is crucial. For many founders they think too small. Investors are consistently looking for 10X growth and most dream about the next unicorn. It will feel uncomfortable at first and you most likely will feel that so very common “imposture” sydrome come creeping in. In time that will fade and you will find that the uncomfortable visions are what drive you even harder.
3) Know your metrics better than anyone
Do not worry we know that for most companies, it is too early to know all your metrics. But it is important to know some and for the one’s that your are not able to calculate create your goal metrics. Some metrics include your pricing structure, gross margins, monthly goals for year one, year two, and year three (both number of clients and percentage of revenue), etc. As you develop your companies it is crucial to know all of your numbers like the back of your hand. Track them early and track them in detail.
If you have a low or a high month be able to explain why. Paint that picture. One finally tip… NEVER lie about exaggerate your numbers. Investors will find out and when they do it will not be in your favor. Just be completely transparent and be able to tell them why. Even with bad numbers, you have still come out on top if you can explain to them why they are they why they are.
4) Know your Competition.
Everyone has competitors and if you do not then it maybe that you are too early or you are not solving a problem people want a solution for. Competition is good. Just be able to explain why you will leave them in the dust. It is a different model, price, rock star team or another advantage that they do not have?
What will enable you to beat them in the long run?
5) Investors Invest in People First then Ideas.
More than likely your company is going to go through a lot of changes or pivot all together. Ideas are a dime a dozen. Even though your concept is extremely important the people are even more important. Take the time to devote at least one slide or section to your team.
Are you an amazing engineer? Spell out your talents and how they contributed to your product. Do you have some strong insight that will give your company the competitive advantage? Include a mini bio on each executive, including their skills and experience. Do not be afraid to brag. This is your time to show everyone what kind of rock star you are.
Investors know you have competitors, and generally, the strongest team will build the best product and brand and therefore win the market. If your team is just a handful of first-timers, which most KY Pitch participants are, then explain your vision for the team. Who will you hire with the capital and how will you recruit them? Don’t play small.
The bottom line is do not stress about it. Tell the story of your company in a way that is easy to understand but extremely compelling. You want the investor to walk away without a doubt in their head that you will be the next unicorn. Business models and pitch decks are not a time to play small but just remember you must back it up with a level be realism. We aren’t making pigs fly and selling them for 1 million dollars anytime soon.
