Creating a business model slide in a startup pitch deck can be a confusing puzzle to solve for many entrepreneurs. Therefore, and over the course of this article, we will not only define what a startup business model is, but we will also share key facts any presenter should consider when attempting to answer the question of just how to make the best of a business model slide for a business pitch deck.
Simply put, a business model defines how your company functions. It states for professionals and investors, as much as it does so for family and friends, what your business strategy is mostly about in operational terms.
What we mean by the above is that your business model should clearly define not only who your customers are, but what value they find in your company, service or product offering, how you make revenue off of this entrepreneurship and how you manage to upkeep a business relation with your clientele in a way that is profitable to both.
Unfortunately, we are at a point in the business world where we cannot speak of business model slides without referencing Swiss business theorist Alex Osterwalder and a model that has nurtured a big part of what is known as a Lean Startup Movement.
Business model canvas is more commonly abbreviated as BMC. They are mainly strategic tools that facilitate business model analysis and development in business presentations.
Why do we mention this? Let’s move on to our key facts to successful business model slides to find out.
The first key fact for you here is: If you have not done so already, please take out a simple sheet of paper and work on your BMC. Yes, no computers for this one but back to old-fashioned (and very fun, actually!) pen and paper.
Furthermore, do NOT do this by yourself. Fundamentally, this should be seen as a team activity and hopefully done together with your business team.
Used as a creative impulse, the BMC should help you define the purpose of your business through your value proposition and network to get to your revenue projections.
This might feel like a cheat, but we cannot stress it enough just how relevant it is that you actually spend time studying and crafting an actual and functional business model. We highlight this as it is not only important for the sake of a winning business model slide to your upcoming pitch deck, but it is furthermore essential to good business health and long-term positive entrepreneurial trajectory.
You might be surprised how many startups fail to work on their business model to their exhaustion as a foundation for their entire business operation. For the number of hours spent trying to scale your business, pausing here - for as tedious and hard as it can feel - is a long-term life and time saver.
Breaking your business model in two sections, you would thus tell us not only how you make your product or business offer, but how you plan on putting it out there in the market, thus coming up with your value chain business model.
Moreover, when you present the above, make sure what you outline actually works in a way that it passes any possible numeric test (and also a logical narrative one) towards actual profitability in the financial model.
There are two ways in which you can typically be innovative in regards to business models; either in the making or on the selling aspects of that on which you are basing your startup. We say “typically” here as fantastic and ground-breaking business models actually manage to be innovative in both aspects.
Therefore, can you innovate how you make, sell or distribute your product? Or could you do so in the way in which you meet consumer needs? Can you actually do so both ways?
If you really do on any of the above and by any means, definitely stress this out in your upcoming business model slide.
Warning here, though, as, if you truly do NOT manage to find an innovative way to crack at your business model, please do not make it up. A bluff here is easier to see from miles away than most think; and investors are awfully good at sniffing that, as well. It’s one of many pitch deck facts. In fact, you need not be an investor to consider from a consumer perspective whether your idea or business proposition is actually innovative at all. So spare yourself a loss of considerable credibility throughout your business presentation by adding something you do not possess; innovation should be an awfully valuable asset, not a required aspect.
Part of the things most startup pitch decks leave out is how the time in which business presentations are being pitched is precisely the right one for any investor or party to be looking at their business offer. This, of course, goes along with reasons why the time at which pitches are being delivered is the perfect one for the product or service to be out there.
In this sense, it is best when you have a business pitch targeting something that is happening or is executed at a moment when the launch or offer works more than ever before - and prior to any further events unfolding.
Many successful businesses have thrived solely based on timing, as a matter of fact. And that is not surprising at all; timing really matters! It does so considerably. So include that in your presentation if the timing is just perfect and on your side.
If you are lost or need to save some time while creating your pitch deck, let us help! Click below for more info.