How to Answer Investors’ Questions in a Pitch Deck
Everybody is a marketer. I said this in one of Codecitty’s staff trainings. This is so true because to make money you must pitch your value to the buyer. To have another party buy into your idea then you must convince him to do so. This is how to create the demand side of everything that has economic value.
I was going to my office on the 21st of September 2019, I ran into a man. His name is Dr. Bombard. He started pitching his herbal products to me. He said this product can solve men related infections. I love the way he did the sales pitching.
He showed me proofs of the products’ effectiveness. He ended up giving me details of his address and his contact. This is a typical meaning of pitching, whether you’re an entrepreneur, marketer, public speaker or a trader you must convince people to buy into what you are taking to them.
This is the true meaning of the pitch deck between an investor and an entrepreneur.
Types of Investors in Pitch Deck
Basically I will show you to main types of investors that start-ups and unicorn founders deal with. They are;
- Angel investor (AI)
- Venture capitalist (VC)
Who is an angel investor?
An angel investor is an investor that invests in early stage of start-ups. This is an investor that sees the potential of a business in the early stage and invests in such business. Well, this type of investment is very risky to the investor because the business can crash. Google, Facebookhad angel investor as explained in 3S Rules.
What is venture capitalist (VC)?
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According to an article on Forbes by Alejandro Acremadesthey are investors that invest big sum of money in a business. They invest in business A, B,C investment round. That means their investment is less risky because the business have shown sign of feasibility.
The Tools to Answer Investors’ Pitch Deck Questions
If you’re following my pitch deck series, this is the third one. The first series was " Discover How to Design Pitch Decks for USD100.53m Funding" while the second series was "top questions investors ask entrepreneurs in pitch decks presentations." In this third article I will show you tools to use in pitch deck designs, it is about how to answer the investors.
- Business Model
- Business Plan
- Survey Outcome
- MVP Metrics
- Revenue Forecast
The business model is an entrepreneurial tool that shows the various structures and components of your business. It shows the product, innovation, the market and the revenue. 3S Rules is about the business model of billion dollars entrepreneurs. The two main components of a business model are how the business operates and how the business makes money.
Business model canvass is a template that shows these components in segment. So, having a model for your business will make it easy for you to know who your business work and how it makes money.
Business plan is an invaluable tool of a company in the sense that it is a plan of the business. It is a compass that helps entrepreneur manage their businesses and it help them to raise funds or partner.
Without a business plan, you can’t raise funds and enter into strategic partnership. It shows to both partners and investors that you have a concrete plan for your business.
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Survey is very important for ideas entrepreneurs and existing who want to pitch. They use it to gather information about their products. The information gathered will help them to be able to make informed and factual statement about their business in their pitch deck design.
The third law of values states that a product is not valuable until it undergoes the marketing test. Your target market needs to pay and use your product to determine the value of your product.
So, the Minimum Viable Product (MVP) is the minimum products that entrepreneurs take to the market to test the viability of their products. During the MVP entrepreneurs can mine data for their pitch decks. In the MVP, you can know the market preference for your product.
This tool is a component of the business plan. It helps to forecast the revenue for the numbers of years you desire. I employ an approach call the regression forecast to forecast for my clients. Investors will like to know the revenue numbers and other numbers.
Now that you’ve known this, ensure you apply the knowledge in your next pitch deck design. Knowledge is power but its application is powerful.
Image credit: 3srules.com
3S Rules is being purchased in UK and US already. It’s an inevitable tool to build your dream business because it is about how men like Bill Gates, Dangote, Strive Masiyiwa, Elon Musk, Larry page, Jeff Bezos etc built their businesses and their business models.
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The Business Models of Billion Dollar Worth Entrepreneurs
Have you ever wondered what makes some business start-ups to succeed and become global giants
while others fail?
With 3S Rules you will learn from global icons who founded companies such as Amazon, Microsoft, Lyft, Apple, Alibaba and many others on how they discovered their business ideas.
3S Rules will give you a first hand founder mindset on how to build your billion dollar startup idea.