How to Make a Pitch Deck for Investors Part 8 Slide 6 Your Business Model | Ep. 116 | Business Podcast
Summary
In this episode we explain exactly what to put on your Business Model slide of your pitch deck.
Your business model is the mechanism through which your company generates its profit by delivering value to customers.
In it’s simplest terms, your business model is your company’s story of delivering your product or service to your customers and how much money you make by doing it.
What is this Perfecting Your Pitch Mini 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 are on part eight of our miniseries on how to build a pitch deck for investors so you can raise money for your company and we are on slide number seven. Your business model. 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, we are on slide seven.
Your business model in its simplest form, a business model is your story of how you get your product or service to the end customer. In technical terms, it’s a mechanism by which you generate profits by delivering value to the customers. I like the first explanation because it’s a little bit simpler. So what is your story? Are you a business that sells to other businesses? Are you a business that sells directly to a customer? Do you do both? Whatever you do? How do you get your product or service from manufacturing, so to speak, into the end customer’s hand.
For example, if you are a traditional quote unquote product company that sends sells to consumers, but you sell to other businesses, then your business model might look like you’re the manufacturer. You sell to a wholesaler, wholesaler sells to a distributor, distributor sells to a retailer and the retail ourselves to a customer. Now, this is very old school, but I give you this example to demonstrate because at each one of those steps there’s economics involved. At each one of those steps, there’s a markup.
And when you describe your business model on this slide, you just want to put these steps and the economics that are along the way, so that someone looking at this can say, oh I see you make this product and here’s how you get it to the end customer. If your direct to consumer manufacturer, then you simply have a website or a catalog and you sell directly to them. And the economics are pretty straightforward. It cost you X to make the product or service. And the margin you make when you sell to the end customer.
If you sell to other businesses, then how do you sell to them? Do you have a intermediate sales organization that does those sales for you? Do you have an in house sales staff that sells directly to them? Then how do you deliver that product or service on this slide? I just like to keep it really simple with some icons. You can put square boxes if you want and then each part of the economics along those steps and what you’re doing here is you’re starting to set up the financial slides that someone can say, oh I see how they make money.
As an example. I’m looking at the original Airbnb pitch deck that they had to raise money from investors and on their business model flied. It simply says we take 10% commission on each transaction. It’s that simple. And then they talk about how many trips and what share of the market they have, which is about 84 million. They take the average fee of $25 and that turns into a projected revenue number for them. It was $2.1 billion. Put it on there In simple terms, don’t clutter up your side with 50 things.
Remember when you’re pitching to the investors with these slides, you don’t want a lot of words or information. That takes a long time for someone to figure out what’s going on because what’s going to happen is they’re going to try to figure out your slide and they’re not gonna listen to you. And listening to you is the most important part of this pitch. So, put some icons with some very high level information, a summary at the top of what business model you have, and then explain it in very concise, simple terms, talking about the economics along the way, and that’s your business model slide. You have this thing done in no time. In the next part of our miniseries, slide eight, we will talk about what to put on your traction slide. Until then 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? If so, you’ll love our monthly built a business success secrets newsletter. It’s a monthly playbook about the inner game of building a successful business. Recent issues have shown how to avoid losing money on Facebook and Instagram paid ads with this science-backed strategy, how to build a pitch deck to raise money in 13 simple slides, three tips.
The monks used to improve concentration and get more done in less on this slide. I just like to keep it really simple with some like to survive and thrive. Playing square boxes if you want to optimize your sales step each times on other action, high percentage mind body business building tips. And as a fellow entrepreneurs, an example for nothing short looking at you owe it to yourself. To subscribe, check out the special offer with bonuses for your business. We take 10% commission on business. That’s simple.
And then they talk about how many trips and until the next episode, remember you are just one business plan away. 25 room for your success in that turns into Projected revenue number for them. It was $2.1 billion. It’s really that simple. But put it on there In simple terms, don’t clutter up your side with 50 things. Remember when you’re pitching to the investors with these slides, you don’t want a lot of words or information that takes a long time for someone to figure out what’s going on because what’s going to happen is they’re going to try to figure out your slide and they’re not gonna listen to you and listening to you is the most important part of this pitch.
So put some icons with some very high level information, a summary at the top of what business model you have, and then explain it in very concise simple terms, talking about the economics along the way, and that’s your business model side. You have that in and that’s your business model slide. You have this thing done in no time until the next episode. We’ll see you soon. In the next part of our miniseries, Slide 8, we will talk about what to put on your traction side. Until then I’m rooting for your success.
