How to Make a Pitch Deck for Investors Part 12 – Slide 10 Your Financials Slide | Ep. 123 | Business Podcast
Summary
Part 12 of our masterclass on How to Make a Pitch Deck for Investors to raise money for your company in 13 slides.
In this episode we continue with your Financials Slide.
We explain exactly what to put on your financials slide to convey the story investors are looking for.
You’re telling a story through these thirteen slides and this slide sets the stage for how much money your company is going to make and how the investors are going to get a return on investment.
What is this Perfecting Your Pitch Masterclass Series?
We’re perfecting your pitch so you have the very best chance to raise the money from investors to take your business to the next level.
If you want to raise or borrow money you need the right pitch deck. Do it wrong and it’s the difference between raising the money you need for your business and not raising any.
You’ll get it right by following this simple, proven, battle tested thirteen slide pitch deck outline.
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Hello Friends. Welcome to the show. Today we’re on part 12 of our master class on how to make a pitch deck for investors so you can raise money for your company. And today we are on slide 10. Your financial slide. Here we go. Welcome to build a business success secrets. The only podcast that provides straight talk for entrepreneurs whether you’re an entrepreneur starting with an idea or growing your business.
This show is for you, we’ll teach you how to build a strong mindset, powerful body and profitable business so you can achieve success and here’s your host, Brendan. See white slide number 10 your financials. The irony of today’s episode is that it will likely be the quickest in this master class, but take you the longest to create. And here’s why, because the financials are going to take you a while to build the slide itself is actually quite quick. So let me tell you what goes onto the slide after you’ve built your financials.
What most investors will like to see is chart at the top that has your revenue growth line and then an expense line and that’s all I put at the top. And then underneath that I give a summary of the profit and loss statement and the profit and loss statement. If you’re not familiar, you need to get someone who is familiar to help you. But as a quick summary to make it really simple, you have your revenue section where you have your top line revenue minus your expenses to create your product or service and then your gross revenue or sometimes called gross sales, then all of your sales, general and administrative expenses. Ebitda earnings before interest, taxes and amortization and then your net profit.
And then I like to include a line underneath there that has the number of employees because investors are going to want to see how you’re growing, not just from a revenue and expense standpoint, but also how are you growing your team and what does that look like? The financials that you need behind the scenes, which are normally going to be built in an Excel spreadsheet or a google numbers spreadsheet if you want to use google is your profit and loss statement and your cash flow statement and you are going to want to have both of these on a five year projection basis.
The truth of the matter is, is that you probably don’t and the investors don’t believe that you know anything out from about six months to 12 months in general. That generally happens for companies that from 0 to 1.75 million ish. It’s very hard. You’re growing fast. There’s a lot of unpredictable things. So it’s not that they’re not going to believe year five, but they want to see what you’re thinking as it relates to how the business will work five years out. And if you have $10 million plus or so, probably your financials are predictable within a year to 18 months, maybe two years.
And then as you get into 25 30 40 and $50 million you have a lot of repeatable processes and predictability at some level in your business. And then maybe an investor is going to say, I want to, I believe three years out, regardless of any of what I just said, you’ve got to build five year financials, you’ve got to have a profit and loss and a cash flow statement. Again, your financial slide for the investor has a chart at the top with your revenue growth and your expense line, which ideally is going to cross over because your expenses might be high in the beginning and you’re not making money, but then at some point it’s going to cross over and that’s the point of that chart.
The chart is to show how fast your revenue is growing and then where your expense line will cross that revenue line and then the bottom again is a summary of your profit and loss statement. But I also suggest that you include a line with the number of employees which just communicates how big your team is going to grow as revenue grows, get your slide together, make this happen. This is an exciting slide.
A lot of people hate this slide because you’ve got to build your financial model, but it shows how much money we can make and then the profits that we can eventually put into our pocket until the next episode. I’m rooting for your success. Thanks for being generous with your time and joining us for this episode of build a business success secrets. Before we go, let me ask you a quick question, Are you the type of person who wants to get 100% out of your time, talent and ideas?
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