What is a Business Pitch? Definition and Examples

The term "business pitch" is often thrown around in entrepreneurship and business development circles. What exactly does it mean? A business pitch can take various forms, each serving a distinct purpose and audience, so a single specific definition is hard to come by.

In this article, we'll explore the different types of business pitches and share the ideal structure for an business pitch deck. If you're selling a service, seeking investment, or presenting at a demo day, nailing the art of business pitching is key to your success.

What is a Business Pitch?

A business pitch is a presentation where you outline a business idea, product, or service to a potential investor, client, or audience. The primary goal is to persuade your audience to take a specific action, such as investing in your business, purchasing a service, or supporting your venture in some way.

You are likely to use a business pitch in these three contexts:

1. Sales Pitch for Services

When you're crafting a sales pitch, your goal is to convince potential clients or customers to purchase your service or product. Focus on the unique value your service offers, its benefits, and how it solves a specific problem for the client. Make sure you understand the client's needs and show how your service meets those needs better than the competition.

For example, imagine you're a digital marketing agency pitching your services to a small business owner. Your sales pitch might highlight how your expertise in SEO and social media marketing can increase their online visibility to drive traffic to their website and boost sales. You might present case studies of past clients, showcasing measurable results, and tailor your pitch to address the specific pain points of the small business owner.

2. Investor Pitch Deck

Your goal when creating an investor pitch deck is to communicate the potential of your startup or business to prospective investors. Aim to secure funding by highlighting the business opportunity, market potential, unique solution, and the team behind the venture. Keep your pitch deck concise, visually appealing, and filled with data and projections that support the viability and scalability of your business.

Consider the example of Airbnb's early investor pitch deck. It clearly outlined the problem of expensive and impersonal hotel stays then presented Airbnb's solution of offering a platform for booking affordable and unique local accommodations, and provided compelling data on the market size and growth potential. This pitch was instrumental in securing early funding that propelled Airbnb into a global hospitality giant.

3. Demo Day Pitch

Demo day pitches, commonly seen in startup accelerators and incubators, involve startups presenting their business ideas to an audience that might include investors, industry experts, and potential partners.

The primary aim of a demo day pitch is to showcase your progress while demonstrating your product or service and sparking interest and investment. Since demo day pitches are usually time-constrained, it's important to make your presentation clear and persuasive.

Take Y Combinator's demo day, for example—startups usually have just a few minutes to pitch their idea. With high pressure and even higher stakes, you need to effectively communicate your value proposition, demonstrate traction, and leave a lasting impression on the audience. An effective demo day pitch can lead to significant funding opportunities and valuable connections to tackle your target market in the best conditions.

Ideal Structure for a Business Pitch

Creating a compelling business pitch deck is more than just putting together slides. It's about telling a story that captures your business, the problem you're solving, and your growth potential. The following Slidebean Pitch Deck Structure offers a proven framework for developing a powerful deck.

Intro Section

• Cover Slide The cover slide should include the company name, logo, and a brief tagline that encapsulates what the business does. It should be visually appealing and set the tone for the rest of the presentation. The tagline should be a clear statement of what your business does, like “Revolutionizing urban transportation” for an e-scooter sharing company.
• Traction Teaser (Optional) If your company has exciting traction, such as significant user growth, revenue milestones, or key partnerships, include a teaser slide to capture the audience's attention from the start. For example, a chart showing a sharp upward trend in monthly active users or a notable revenue milestone can create immediate interest and excitement.

Status Quo Section

• Market Overview (Optional) Provide a high-level view of the market you're entering. This can include market size, growth trends, and key dynamics. This slide is optional but can be useful for setting the context. For instance, highlighting that the global market for your product is expected to grow from $10 billion to $50 billion in the next five years can establish the potential scale of the opportunity.
• Problem or Business Opportunity Clearly define the problem you're addressing or the market opportunity you've identified. Use data, anecdotes, or visuals to make the problem relatable and urgent. For example, if you're pitching a health tech solution, you might highlight the inefficiencies and costs associated with current healthcare processes and how your solution streamlines these processes to save time and money.

Product Section

• Solution Present your solution to the problem. Explain how your product or service effectively addresses the issue and why it's better than existing alternatives. Use clear, straightforward language to describe the benefits of your solution. For instance, if your solution is a mobile app that connects freelancers with clients, explain how it simplifies the hiring process to ensure secure payments and provide a rating system for quality assurance.
• Product Details Showcase your product with images, screenshots, or a demo video. Highlight key features and functionalities. For a software product, you might include screenshots of the user interface, demonstrating how easy it is to navigate and use. For a physical product, high-quality images showing different angles and features can be very effective.
• How It Works Provide a step-by-step explanation of how your product or service works. Use diagrams or flowcharts if necessary to make it easy to understand. For example, a flowchart showing the user journey from signing up to using your service can help investors visualize the process and understand the user experience.
• Tech Infrastructure (Optional) If your technology is a key differentiator, include a slide that explains your tech stack and infrastructure. This is particularly important for tech startups. Detail the technologies used, such as programming languages, frameworks, and platforms, and explain how they contribute to the reliability, scalability, and security of your product.
• Target Audience Define who your target customers are. Use demographic data, user personas, or market segmentation to paint a clear picture of your audience. For example, if you're targeting millennials who are health-conscious, provide data on their spending habits, preferences, and pain points that your product addresses.
• Case Study (Optional) If you have a compelling case study that demonstrates the effectiveness of your product, include it. This can provide tangible proof of your solution's impact. Describe a specific potential customer, their problem, how your product could solve it, and the positive results achieved. Include quotes or testimonials to add credibility.
• Business Model Explain how your business makes money. Include pricing strategies, sales channels, and revenue streams. Make it clear and straightforward. If you have a subscription model, for instance, outline the different subscription tiers plus their pricing, and what each tier includes. If you use a freemium model, explain the conversion rates from free to paid users.
• Roadmap Outline your product and business development roadmap. Highlight key milestones achieved and plans. This shows investors that you have a clear growth plan. Include specific goals, such as launching a new feature, entering a new market, or reaching a revenue milestone, along with the timeline for achieving them.

Market Section

• Traction Provide evidence of traction. This could include user growth, revenue figures, customer testimonials, or market adoption rates. Traction is important for convincing investors of your business's potential. Use charts and graphs to visualize growth metrics. For example, a bar chart showing month-over-month revenue growth or a line graph depicting user acquisition trends can be very compelling.
• Unit Economics Detail the financial aspects of your business model, such as customer acquisition cost (CAC), lifetime value (LTV), and profit margins. These metrics help investors understand the sustainability and scalability of your business. Explain how you optimize these metrics and their significance. For example, a low CAC compared to a high LTV indicates a profitable growth strategy.
• Go-to-Market Strategy Explain your strategy for acquiring and retaining customers. Highlight marketing channels, sales tactics, and growth strategies. Describe the channels you will use, such as social media, content marketing, partnerships, or direct sales, and how they align with your target audience. Provide examples of successful campaigns or initiatives that have driven growth.
• Potential Outcomes (Optional) Discuss potential outcomes and scenarios for your business. This can include best-case, worst-case, and most likely projections. It helps investors understand the risks and rewards. Use scenario analysis to illustrate different growth paths and their implications. For example, a best-case scenario might involve rapid market adoption and expansion, while a worst-case scenario might consider slower growth and increased competition.
• Market Size/TAM Provide an estimate of the Total Addressable Market (TAM) for your product or service. Use credible sources and data to back up your claims. Explain how you calculated the TAM and why it's relevant to your business. For instance, if your TAM is $10 billion, detail the segments that make up this market and the percentage you aim to capture.

Why Us Section

• Competitors Analyze your competitive landscape. Identify key competitors and explain how your solution is superior. Use a comparison chart or SWOT analysis if needed. Highlight your unique selling points and how they give you an edge over competitors. For example, if your product offers faster performance and lower costs than competitors, make this clear.
• Competitive Advantages Highlight your unique selling points and competitive advantages. This could be proprietary technology, unique business model, or strategic partnerships. Explain why these advantages are sustainable and difficult for competitors to replicate. For instance, if you have a patent on a key technology, detail its significance and protection.
• Secret Sauce Discuss the unique aspects of your business that give you an edge over competitors. This could be your technology, team, or innovative approach. Describe how these elements contribute to your success and differentiate you in the market. For example, if your team includes industry veterans with extensive experience, emphasize their contributions and expertise.
• The Team Introduce your core team members. Highlight their relevant experience, skills, and achievements. Investors invest in people as much as they invest in ideas. Provide brief bios that showcase the team's qualifications and their role in the company. Include any notable advisors or board members who add credibility and expertise.

The Ask Section

• Financial Forecasts Provide financial projections for the next 3-5 years. Include revenue, expenses, and profitability estimates. Use charts and graphs to make the data easily digestible. Explain the assumptions behind your projections and how you plan to achieve them. For instance, a revenue projection might be based on expected user growth and average revenue per user.
• Ask State how much funding you're seeking and what you plan to use it for. Break down the allocation of funds and the expected outcomes. Be specific about how the investment will help achieve your milestones and drive growth. For example, you might allocate funds to product development, marketing, hiring key personnel, and expanding into new markets.

Getting your business pitch right takes a lot of homework and really knowing who you're talking to. You need to be able to share your big ideas in a way that gets people excited. If you follow the ideal structure discussed above, you'll be able to come up with a compelling narrative that showcases your business's strengths, addresses key concerns, and persuades your audience to take action.Take time to create a pitch that not only informs but inspires, and you'll be well on your way to building a successful and impactful business. Keep in mind, that a business pitch isn't just about presenting facts—it's about telling an engaging and persuasive story.