Imagine you have an appointment with Bill Gates. The goal of the appointment is to pitch your business to him. Well, these questions should run through your mind; how will I go about it? What do I have to do in order to perform excellently? These are very great questions that need answers if you don’t want to fail at this uncommon meeting.
Onward, that reminds me how a few months ago Prof Nduibuisi Ekekwe met Bill Gates for a presentation. As you know, Bill Gates is a legendary entrepreneur and he understands the secrets of building billion dollar businesses.
According to Nduibisi he was impressed by his presentation. After the presentation, Bill Gates walked up to him and remarked “that was great”.
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The secret to this kind of outcome was preparation. As the age-long saying goes, preparation prevents poor performance.
I know you will ask, but what kind of preparation? It is taking time to work on your business model, business plan and pitch deck thoroughly. More specifically, is the pitch deck, that is what an entrepreneur uses for funding presentations.
We shall consider in this analysis, how to produce your pitch deck from your business model. This is very important, as it will guide you to know the right thing to say when an investment or financing opportunity presents itself.
Producing a Pitch Deck from a Business Model
An article on 3S Rules highlighted the two major parties in a pitch deck meeting. They are the investor and the entrepreneur. The work of an entrepreneur is to convince the investor about the feasibility of his business, while that of the investor is to judge the business. This pitch deck presentation template will guide you more.
Here are the strategic questions to provide answers to from your business model and business plan, in order to have a great pitch deck.
- What is the Friction (Problem) and the Solution?
It is no longer new to you that every business is built around certain problems. These problems are solved with certain innovative products.
These products form the fabric of every great business. We see Amazon, a marketplace to buy any imaginable product. Microsoft, a company that provides software for micro computers.
In the same way, write the problem (friction) your business exists to solve and explain how the product works to solve it. This is already present in your business model. So, extract it from there.
- What are the Unit Economics?
Now, you have explained all that needs to be explained about your business problem, solution and product. In the meeting, you can go ahead and demonstrate your solution practically, as Elon Musk does in his pitching.
Another important question to answer is; what is the unit economics of the business?
That is, how much does it cost to provide the solution? How much is the revenue (selling price) the solution will generate? What are the mark-up and margin of the product? These can easily be obtained from the revenue component of your business model. I can provide a guide too.
- Who is the Team to Drive the Business?
This part is very crucial. You know, the success of a business largely depends on the people factor (the team) driving the business. You will need to demonstrate to the potential investors that your team members possess certain expertise that are needed to run the business successfully.
You know, investors seek to reduce their risk when they invest. One of the ways to reduce that risk is to be sure that the team behind the business can manage the business effectively.
- How Much Funds Do You Need?
You should state how much you need to raise. Also, go further to explain with great clarity how you intend to use the fund to grow the business. There should be a logical rationale for raising funds.
You can raise funds and use it for what you like but not from investors. There should be a very convincing reason for raising funds and a convincing reason for its usage. However, your fund should be used either to start the business or to grow the business.
An article on Inc about the 10 slides of a pitch deck explains the funding part better.
These are just some of the basic things to note as you prepare for an opportunity. Well, you should always have the pitch deck of your business handy, as it will help you to cease every investing opportunity that comes your way.
When you prepare this way, you will be able to meet Bill Gates and perform excellently.