What a Pitch Deck Business Model Slide Is and How To Make It Impactful

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Starting your own business is challenging, but helping it grow is even harder. Often, a project’s success depends on how effectively you can secure reliable financing resources. This is especially important for startups. Usually, they have trouble securing funds due to having little or no traction at all in the beginning. One of the most effective ways to deal with this issue is to create an engaging pitch deck. A compelling deck will help you better explain your business idea to potential founders and help them realize why it is worth their investments.

As a presentation design agency, we have seen firsthand how pitch decks play a vital role in attracting investors. After all, your goal is to persuade them that your business has great potential and will generate returns quickly.

A well-crafted pitch deck featuring a detailed business model slide provides an excellent chance to excite and engage potential investors. So let's explore why business model slides are so valuable for investors and how they can boost your chances of success.

What is a Business Model Slide?

A business model slide is a vital component of a pitch deck. It explains how your company generates revenue and creates value.

This slide is supposed to give answers to such fundamental questions as:

• What revenue are you aiming to generate?
• What tools and strategies will you employ to achieve your goals?

A well-crafted pitch deck business model slide will explain to potential investors the ideas, strategies, and goals you aspire to achieve with your business.

Why Do You Need a Pitch Deck Business Model Slide?

Imagine that you've got a fantastic business idea with the potential to revolutionize the existing market. Yet in order to bring your idea to life, you must hunt for funding sources. Consequently, you need to find and connect with the right investors who will see your company's potential to the point of entrusting it with their funds.

Surely, this is easier said than done. There's a lot on the line. If you fail to find potential investors, you may risk your company.

American businessman, investor, and philanthropist Shelby M.C. Davis once said:

"Invest for the long haul. Don't get too greedy, and don't get too scared."

A well-crafted business model pitch slide is the key to winning over investors, who are usually eager to see that your business idea can grow and provide a return on their investment.

Bill Gross, a renowned expert in the bond market and founder of numerous successful startups, says that a well-executed business model and access to funding are critical factors that propel companies toward ultimate success.

In today's competitive business environment, everyone wants to maximize their gains. That's why investors look beyond the numbers. How you express your business details can make all the difference.

With that in mind, there are several important reasons to include a business model slide:

• A detailed business model description is the most captivating part of a pitch deck and grabs the attention of potential investors.
• A well-organized pitch deck shows that you're serious about building a successful business and have made an effort to present your ideas more comprehensibly.
• The more information you include in your business model slide, the more scalable your ideas will seem to investors, ultimately boosting your chances of securing the needed funding.

Key Elements on the Business Model Slide

Now that you know the answer to “What is a business model in a pitch deck?” and why it matters, it is time to outline the main components of a success-oriented business slide.

Value proposition

Your value proposition is the core of your business model. Everything builds around it. Briefly reintroduce your company to the investors. Let them know what makes you better than the existing competition. Draw their attention to growing customer needs or pain points that haven't been addressed by other businesses.

Target market

A profit-oriented investor pitch business model slide outlines the exact segment or segments of the market that you are aiming at. Share engagement strategies that will help you persuade your target audience and effectively convert them.

Revenue generation strategy

Every business model in the pitch deck should answer the specific questions investors will have. What's in it for them? Describe lucrative opportunities, including but not limited to revenue streams, monetization, and other financial strategies that will generate future profits. Whether these are subscription-based models, direct sales, or specific advertising approaches, make these numbers speak for themselves.

Costs and expenses

A professional business model pitch deck is a reflection of your business vision. This means that you should be well aware of your upcoming expenses and your precise financial needs. All costs and expenses should be clear and comprehensible to the audience, even if they have a limited understanding of the field.

Distribution channels

It is not enough to come up with a valuable solution. You must deliver it so that it involves as large a consumer base as possible. Show investors that you understand your target audience and have the most functional distribution channels in mind. Explain what makes these channels effective.

How To Create a Business Model Slide for Your Pitch Deck

When developing your pitch deck, ensure it aligns with your company's objectives and vision. You should also consider these crucial elements for an effective presentation:

1. Target audience
2. Potential obstacles
3. Strategies to overcome these obstacles
4. Demonstrated progress
5. Revenue and investment projections
6. Team and marketing strategy details

For most impact, follow expert advice on how to properly convey these aspects within your pitch.

Traction

Don't be shy about showcasing your achievements! Including traction information in your business model slide is a great way to impress investors and show them what you've accomplished so far.

Additionally, emphasizing the steps you've taken to implement your ideas is crucial in conveying your message and can significantly boost your credibility with potential investors.

Revenue model

In this section, outline the steps you'll take to generate revenue based on your business model. The primary goal of the revenue model is to explain the type of income you expect to generate and provide information about the company's revenue streams.