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Pitch Deck vs Business Plan: Differences and Which to Use

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Have you ever spent time deciding between creating a pitch deck vs business plan? For startups and new business owners, where every minute counts, it’s crucial to concentrate on activities that deliver the most significant impact.

This blog article demystifies the pitch deck vs business plan, whether you aim to attract investors, secure a loan, or win over partners and clients. We’ll start with pitch decks, followed by business plans, with the goal of helping you choose wisely – so you can spend less time on paperwork and more time building your business.

1. What is a pitch deck?

A pitch deck is a slideshow that concisely conveys your business idea, market opportunity, and value proposition in a presentation format. Also known as a business or investor deck, they are used to quickly present business ideas, products, or services in 10 to 20 slides.

Purpose of a pitch deck

The purpose of a pitch deck is similar to that of an elevator pitch: tell a compelling story to grab the attention of potential investors, partners, or clients.

The goal isn’t to seal a deal on the spot but to spark sufficient interest to secure follow-up meetings and negotiate potential funding.

How long should a pitch deck be?

Your pitch deck should pack a punch, not bore your investors. Aim for 10-20 impactful slides . For complex ideas or specific industries, slightly more might be okay.

The 10/20/30 rule is your friend: make a 10-slide deck that grabs attention. Investors see hundreds of pitch decks a year. Choose quality over quantity – make each slide count!

💡 Related article: How many slides do you need for a 10-minute presentation?

What should be in a pitch deck

Most successful pitch decks follow a similar flow to keep investors hooked. The tried-and-tested 10-slide pitch deck format is a great starting point but be prepared to adjust or add slides for emphasis.

These are the 10 core slides for a pitch deck based on Guy Kawasaki’s 10/20/30 rule:

• Problem slide
• Solution slide
• Market size and opportunity
• Product/service
• Business model
• Competition
• Financials and key metrics
• Ask (funding needs)

Here are additional slides you may include based on specific business and investor preferences:

• Introduction
• Go-to-market (GTM) slide
• Sales and marketing strategy
• Use of funds
• Exit strategy

💡 Learn more about the 10/20/30 rule: How to create a pitch deck (and the 10 slides you need)

Pitch deck examples

Curious how some tech unicorns have pitched their ideas in the early stages? Here are two examples that have proven successful.

✅ Snapchat pitch deck (2013, Pre-seed)

✅ Tinder pitch deck (2016, Seed)

Examples from Best Pitch Decks

2. What is a business plan?

A business plan is a written document with detailed information that acts as a roadmap for your business. A traditional business plan is a formal document that outlines all aspects of your business, including its goals, strategies, market analysis, operational structure, and financial forecasts for the next 3 to 5 years. Most business plans are created in a Word document or report format, ranging from 10 to hundreds of pages long. 

There are other types of less formal business plans used by startups or for internal alignment:

• Lean startup plan/Lean canvas: Summarizes the value proposition and business model into a single page, with a focus on the problem-solution fit.
• One-page business plan: Fits the essential information of a business into one page. Great for quickly testing an idea’s viability or getting immediate feedback.
• Internal business plan: Less formal, designed for use within an organization — for example, a feasibility business plan, operations plan, strategic, or expansion plan.

Purpose of a business plan

Business plans aren’t just for paperwork – they drive action and results. Think of your business plan as a multi-purpose tool that serves several vital functions:

• Attract investors
• Fundraising or securing loans
• Map your strategy
• Provide a strategic roadmap
• Track business progress or provide a performance benchmark
• Win over partners, talents, and potential hires

Components of a business plan

Business plans don’t have a right or wrong format; only different situations call for other formats. You can mix different plan types to prioritize components that directly support your objectives.

What to include in a traditional business plan:

• Executive summary: A concise overview of your entire business plan, highlighting the most critical points.
• Company description: What your business does, the problem it solves, your target market, and competitive advantages.
• Market analysis: Research data like market size, trends, competitors, and customer demographics.
• Organization and management: The business structure, roles, and experience of key team members.
• Products or services: Details on your offer, including features, benefits, pricing, and any intellectual property considerations.
• Sales and marketing strategy: How you plan to reach your target customers (market) and tactics to promote and drive sales.
• Financial projections: Forecasts of your income, expenses, cash flow, and profitability for the next 1 to 5 years.
• Funding request: If you are fundraising, state the amount, how it will be used, and the terms you offer investors.
• Appendix: Include any supplemental information and documents.

💡 Pro tip: Customize your plan! Add, remove, or rearrange sections to achieve your goals.

How long should a business plan be?

Think about your reader and your goal.  Need a detailed plan for a bank loan? That might be 15-25 pages. Want a quick internal roadmap? A one-page Lean Canvas could work. Consider your industry, who’s reading it, and what you need the plan to do.

💡 Pro tip: Choose quality over quantity. Focus on clarity, regardless of length.

How long does it take to write a business plan?

It can take anything from 20 minutes to 20 weeks. The whole process of creating a business plan can be time-consuming (if opting for a long format), and it can also be quick (for example, the Lean Canvas).

The general advice is: Don’t overthink your first business plan. Start simple, move fast, and build as you grow. Business plans aren’t static, so be prepared to refine and expand your plan as the business evolves.

💡 Pro tip: It’s not uncommon to uncover some challenging sections while writing the plan – the key is to show awareness of these issues and ways to overcome them.

Business plan templates

Not sure where to start? Use these example plans and templates from these reputable sources to get you started: 

• SBA.gov: Write your business plan –  Has the traditional business plan and lean startup business plan templates
• SCORE.org – Has business plan templates for a startup , an established business , and the Business Model Canvas
• Bplans has over 550 business plan examples across multiple industries, which you can use for inspiration.

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3. Pitch deck vs business plan: the differences

Now that you understand pitch decks and business plans, let’s dive into their key differences.

• Pitch decks are short and punchy, designed to grab investors’ attention and get you that crucial meeting.
• Business plans are thorough and detailed documents, perfect for in-depth analysis or large funding requests.

💡 Think of it this way: Pitch decks are the attention-grabbing movie trailers that sell the whole project. Business plans are your complete blueprint.

Both documents can serve you, but understanding their differences helps you select the best tool for attracting investment or charting your company’s path.

4. Do you need a pitch deck or a business plan?

In the past, business plans were the standard document to present a business idea to investors. However, simple business plans and pitch decks are increasingly popular, especially in startups.

Here’s how to choose the right tool for the job:

🎯 Pitches and investor meetings

Pitch decks provide a snapshot of your business or idea’s potential to spark interest and secure future investor meetings.

🎯 Early stages or for idea validation

Use a simple business plan or Lean Canvas, as the format forces you to focus on the core problem you’re solving and the solution.

🎯 Internal roadmap and planning

Formal business plans will aid in longer-term strategic planning, or they can be shorter since they are for internal use.

🎯 Complex business model

Create a thorough business plan with intricate details; short plans and pitch decks wouldn’t cut it for specific industries or complicated business models.

🎯 Fundraising, loans, or traditional financing

Banks, investors, and government-funded grant applications often require a detailed business plan. Whether you seek debt or equity funding, angel investors, VCs, and banks need compelling reasons to support your venture.

💡 Pro tip: You’ll still need a traditional business plan for detailed strategy or significant funding!

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5. Conclusion

Pitch decks and business plans aren’t simply documents – they’re essential tools for driving your business forward. Now that you know the difference, consider your current needs. Ready to capture investor attention? Start crafting a compelling pitch deck. Need a detailed roadmap? Begin writing a winning business plan. Use the resources in this guide to get started and put your business on the right track toward success!

When should you write a business plan?

According to research by Harvard Business Review , between six and 12 months after deciding to start a business. For various reasons, crafting a comprehensive business plan either earlier or later doesn’t necessarily impact business success:

• Most startups pivot from their original ideas and plans.
• The time needed to create a thorough plan is better spent on other business activities (at least initially).
• Creating an elaborate plan may distract entrepreneurs from seeing opportunities in real time and responding to real customers’ needs.

Planning is valuable, and entrepreneurs who plan are more likely to start a successful business. However, you don’t need a complex business plan to begin working on your business. It’s okay to create a plan early on but remember; it’s more about being strategic with your time than trying to forecast the future from the start.

What’s the difference between a business plan and a canvas?

They differ in complexity and length. Business plans are longer and more detailed and are typically used to secure funding from investors or financial institutes.

A canvas, Lean Canvas , or business plan canvas, is a 1-page business plan. The Lean Canvas template helps you deconstruct your idea and focus on finding customer problems worth solving without a significant time investment. 

It is popular as a direct replacement for traditional business plans within startups. The canvas can be used for quick and efficient brainstorming of multiple business models in a few hours or less.

How do I turn a business plan into a pitch deck?

Once you’ve done the groundwork of creating a business plan, you can reuse some of the insights, data, and information for a pitch deck. 

• First, extract the core details from the business plan, such as the problem you solve, the solution, the size of the market, team strengths, and financials.
• Translate that information into your chosen pitch deck template (for example, the 10-slide pitch deck ) or use an AI presentation generator tool such as SlidesAI to structure your slides. 
• Add and emphasize visuals. Replace some text with charts, diagrams, and graphs whenever applicable.
• Edit and keep the pitch deck focused and clear. Quality over quantity!
• Get feedback, practice your pitch, and then iterate on the deck until you are ready to show it to investors.

💡 Related article: 5 best free AI pitch deck generators 2024

Is a pitch deck only for investors?

No, while the primary purpose of a pitch deck is to attract funding, it can be adapted for various audiences and goals, such as partnerships, customers (especially enterprise customers), grant applications, startup or pitch competitions, or even for internal alignment within your team.

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Blog Business Pitch Deck vs Business Plan: Key Differences Explained

Pitch Deck vs Business Plan: Key Differences Explained

Written by: Hansika Oct 29, 2024

For startups, securing funding is the lifeblood of getting your brilliant idea off the ground. In a competitive landscape, with fewer and smaller VC deals, especially with the 2023 funding crunch , communicating your vision in a compelling way is key.

Two essential documents help you do this: a pitch deck and business plan. Both have their unique advantages and disadvantages and the best choice for you depends on specific needs and goals of your business.

A business plan is a comprehensive document that outlines your company’s objectives, strategies and financial projections. A pitch deck is concise, visually engaging and is designed to capture investors’ attention quickly. Studies show that investors spend an average of 3 minutes and 44 seconds reviewing a pitch deck, highlighting the need for brevity and impact.

Understanding the key differences between these two business tools is crucial for effectively communicating your ideas and securing the support you need. Don’t worry, you don’t have to start from scratch. Try Venngage’s business plan templates and pitch deck creator and pick from a wide range of customizable options to help you create visually stunning and persuasive materials. 

Click to jump ahead:

What is a pitch deck?

What is a business plan, key differences between a pitch deck and a business plan, what is included in each one, use cases for business plans and pitch decks, when to use a pitch deck vs a business plan.

• What level of detail needed for each business tool

Choose the right communication tool for your business

A pitch deck is a streamlined visual presentation, typically 10 to 20 slides, designed to effectively communicate your startup’s core business idea, market potential and unique value. Think of each slide as a powerful snapshot of your startup’s story. Often referred to as a “business deck” or “investor deck,” this presentation serves as a critical tool for engaging potential investors by succinctly conveying your vision and strategic plan. 

Instead of diving into an exhaustive business plan, a pitch deck is your startup’s highlight reel, allowing you to capture investor interest with the unique opportunity your business presents.

A well-structured pitch deck often follows Guy Kawasaki’s 10/20/30 rule . This approach emphasizes clarity and brevity—10 slides, delivered in 20 minutes, with no text smaller than 30-point font.  Follow this framework to ensure that your presentation is concise, engaging and easy to understand. The goal is to convey your startup’s potential through impactful visual storytelling, making your message both compelling and memorable.

Key sections of a pitch deck typically include your problem statement, solution, market opportunity, business model, competitive analysis, financial projections and the team behind the venture.

Remember, in the fast-paced startup ecosystem, your pitch deck might be your only shot at turning skeptical investors into enthusiastic backers. So, make every slide count!

A business plan is an in-depth, comprehensive document that outlines your company’s goals, strategies, market analysis, operational framework and financial projections. It’s where vision meets strategy and dreams are translated into actionable steps.

A business plan is a comprehensive written document that details:

• Your business objectives
• Strategies to achieve these objectives
• In-depth market analysis
• Operational structure
• Detailed financial forecasts

A business plan serves as a detailed roadmap for how you plan to build, grow and sustain your business over time. Think of it as the GPS for your business journey, guiding you through every twist and turn.

Unlike a pitch deck, which is brief and high-level, a business plan dives into the granular details necessary for long-term strategic decision-making.

It typically covers several core components, such as business objectives, market opportunities, target audience analysis, competitive landscape, operational structure and detailed financial forecasts.

Types of Business Plans

Not all business plans are created equal. Depending on your needs, you might opt for:

• Traditional Business Plan: The full monty – detailed and comprehensive. These are often lengthy, structured and suitable for securing loans or investor funding.
• Lean Startup Plan: A quick, high-level overview focusing on key elements.
• One-Page Business Plan: Your entire business strategy condensed into a single, impactful page.
• Internal Business Plan: A roadmap for your team, focusing on operational and strategic details.

A well-crafted business plan is a versatile tool that can serve multiple purposes. It can secure loans by providing lenders with a detailed overview of your business, including your market analysis, financial projections and management team. This helps lenders evaluate the risk and potential return of your venture.

A business plan is crucial to attracting top talent by showcasing your company’s potential. It demonstrates your passion, vision and commitment to growth, making it more appealing to talented individuals. By highlighting your company’s mission, values and long-term goals, you can attract employees who are aligned with your vision.

Finally, a business plan can serve as a reality check by helping you identify potential challenges before they arise. By conducting a thorough analysis of your market, competition and financial projections, you can identify potential risks and develop strategies to mitigate them. This can help you avoid costly mistakes and make informed decisions.

Pitch decks are like headlines; business plans are the articles. A headline grabs attention and provides a brief summary, while the article delves into the details. 

Here are some more points of difference between these two business tools:

As you can see, a pitch deck provides a concise overview of your business, while a business plan provides a comprehensive analysis.

Now that you know the differences between a pitch deck and business plan, let’s look at all the components included in each of them.

There are different scenarios where you would pick between a pitch deck and a business plan. Use the right business communication tool and you’re more likely to get your desired result.

Pitch deck use cases

• Investor meetings:

The goal in investor meetings, to quickly capture interest. Pitch decks help you to provide a succinct overview of your business, focusing on high-impact visuals and concise messaging to outline your value proposition, market opportunity and financial potential. Ensure your deck makes a strong impression in the first 30 seconds to hook those Investors in for a follow-up meeting. See how Facebook raised its initial seed money of $500,000 with its pitch deck.

Source: Cirrus Insight

• Startup competitions:

During startup competitions, a pitch deck gives you a powerful way to convey your business idea and unique position. The audience may include judges, potential investors, or industry experts who will appreciate a clear, compelling presentation that highlights your startup’s vision, business model and market fit, within a limited time frame.

• Partnership discussions:

When discussing potential partnerships, a pitch deck helps you present your business’s potential in a clear and concise manner. By showcasing synergy, market positioning and growth potential, a pitch deck provides partners with a snapshot of how collaboration could be mutually beneficial and sets the vital foundation for further negotiations.

Business plan use cases

• Securing bank loans:

A well-prepared business plan with solid financials and market analysis demonstrates your preparedness and reduces the perceived risk for lenders. When approaching banks or financial institutions for a loan, a business plan is crucial in giving lenders and financial authorities a clear picture of your organization’s financial health, your business model and any anticipated risks so they’re aware of your ability to repay the loan. 

• Internal strategic planning:

A business plan also serves as a guiding document for internal strategy. It outlines long-term business objectives, operational plans and growth strategies, so that your team can align your team with the company’s vision and goals. When everyone is working towards the same goals, chances of success increase. 

• Attracting key hires and partners:

A comprehensive business plan is a great tool to attract top talent or potential partners. High-level candidates and partners are often keen to understand the company’s vision, strategy and long-term potential. A business plan shows them your business is viable, well-organized and future-focused, so they’re reassured of their decision to invest their time or resources.

Choosing between a pitch deck and a business plan depends on your business goals, the stage of your company and the audience you’re addressing.

Pitch decks

A pitch deck is designed to make a strong first impression in a limited time. It’s visually engaging and provides an overview of your business without going into the deep operational details. If your goal is to secure initial interest or kickstart a relationship, a pitch deck is your go-to tool.

If your primary objective is raising early-stage capital, opt for a pitch deck. Investors want a quick, visually engaging presentation that covers the essentials and sparks interest. Use a pitch deck when presenting to new investors, partners, or during competitions where brevity and clarity are key. If you’re not sure about where to start, check out the pitch deck templates by Venggage for a professional, minimal pitch deck to crack your next investor meeting.

Business plans

Business plans on the other hand, are important tools when it comes to long-term planning and objectives. If you’re securing long-term funding, formal partnerships, or aligning internal teams, this comprehensive document is essential for ensuring all stakeholders are on the same page with your business goals. Business plans allow these stakeholders to understand the potential and long-term viability of your business.

Opt for a business plan when the audience needs to understand the intricate details of your business, such as during long-term financial planning, strategic hires, or scaling discussions.

By choosing the right tool for the right scenario, you ensure that your message resonates with the intended audience and helps you achieve your specific business goals.

What level of detail  is needed for each business tool

Pitch decks are high level documents. Clarity and length of your messaging is vital to keeping investors engaged and interested. Use visual elements like images, graphs and charts to convey complex ideas quickly. Stick to the main ideas and guide investors through your story with a clear, compelling arc.

Your goal here is to highlight the benefits of your product or service quickly in an impactful way.

An ideal pitch deck will have 10-20 slides that capture the essence of your startup, with simple and powerful statements.

Business Plan

Business plans are comprehensive and in-depth. All the sections need thorough explanation, backed by data. Various aspects like financial projections, operational plans and market analysis should be robust and well-researched.

A 20-40+ page document that provides detailed insights into every aspect of your business.

Both pitch decks and business plans are essential tools in your business journey, but they serve different purposes. The pitch deck is a quick, visual way to spark interest, while the business plan offers a full roadmap for long-term success.To determine which tool is right for you, assess your current goals—whether it’s securing quick investor interest with a pitch deck or presenting an in-depth financial strategy with a business plan.

Frequently Asked Questions (FAQs)

1. is a pitch deck only for investors.

No, pitch decks are also used in startup competitions, partner meetings and internal presentations.

2. Can a business plan be turned into a pitch deck?

Yes, you can distill key elements from your business plan into a concise, visual pitch deck format.

3. What are the essential slides in a pitch deck?

Key slides include the problem statement, solution, market opportunity, business model, financials and the team.

4. Do I need both a pitch deck and a business plan?

Yes, it’s beneficial to have both. The pitch deck helps in initial presentations, while the business plan supports deeper discussions and planning.

5. How do I turn a business plan into a pitch deck?

Pick the most important sections from your business plan—such as your market opportunity, solution and financials—and distill them into a 10-20 slide format.

6. When should you write a business plan?

Write a business plan when you need detailed financials for a loan, want to guide internal strategy or seek to partner with other organizations.

7. What’s the difference between a business plan and a canvas?

A business plan is detailed and long, while a business model canvas is a one-page visual tool that outlines key aspects of your business model.

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• What is a Pitch Deck

Whether you’re a first time founder, a hopeful entrepreneur or a serial startup guru, you’ve likely pondered “What is the difference between a pitch deck and a business plan?” Which one came first? Why would you use a pitch deck over a business plan? Or, why would you use a business plan over a pitch deck? Are business plans archaic? Is a pitch deck just a pretty business plan? What works best for your startup? And at what time? Do you even need either one? These are important questions. Especially when your time is limited as you are building and growing your company.

Before we can answer these questions, let’s talk about what a pitch deck and a business plan are.

THE BUSINESS PITCH DECK

A pitch deck is a presentation that contains 10-20 slides. The pitch deck presentation is either sent to investors as a pdf to get them interested in taking a meeting with the entrepreneur, or used as a visual aid during a live presentation to either investors or other audiences like pitch competitions. Sometimes pitch decks are used for both.

A pitch deck is meant to share information about your business. Who does it serve and why, the size of the market, your special sauce and how you will win in that space. It lays out clear go to market strategies, and delves into some detail on future opportunities. It relies on your research of your industry and understanding of your business’ plan for launch and growth. The pitch deck helps an investor see where you are, where you are going and enables them to decide if they want to help you get there. The goal of a pitch deck is to score an in-person meeting or to kick off the conversation with an investor about joining your funding round.

• 10-20 slides
• Highly Visual
• Used to Get Investors Attention

THE BUSINESS PLAN

A business plan is a fully researched 10-100 page document. The document is used to store and convey in detail your business’ plans for the next 1,3, 5 years. The business plan lays out the research you’ve done in your industry and competitors. It discusses your sales, marketing, and operational plans. It takes into account your financial analysis, assumptions on growth and success, and lays out a map of where your company will be and how it will get there.

The business plan goes into detail on the management team and what unique skills they bring to the table. The document usually includes a significant number of charts, depictions and pictures. But it relies heavily on text to convey the information. The business plan is used as a document that is shared with potential investors for them to use as a reference point when deciding whether or not to invest in your company. It is often used in a due diligence step in the funding process. The goal of a business plan is to lead you and your team members down the path of success over the next few years, and to show an investor how you plan to be successful with their investment.

• 10-100 Pages
• Highly Text-Based
• Used to Get Investor Buy-in

Which Came First, the Pitch Deck or the Business Plan?

The business plan is a longstanding document that has been been used in the building and planning and funding of businesses for quite some time. Possibly as long as  businesses  have been a thing. If you can believe that. It is a basic document really, it is the plan for the enterprise which you are setting out on.

To ensure that you are successful, you should carefully plan how you will be successful, and make those decisions based on thorough research. You need to understand your customers and their problems as well as your competitors and their weaknesses. Before the existence of Venture Capital firms and other now widely available forms of equity funding, banks gave out loans to businesses to help them get started. But in order to choose who to give the loans to, they needed to make sure that they would be able to pay those loans back. A business plan was required to convey to the banker the viability of the venture. It has been a staple ever since. Banks still require business plans for loan applications today. Some request or accept pitch decks too, but not usually instead of the business plan.

It is not clear who put together the very first pitch deck, or since exactly when investors have been looking for the pitch deck, but we can deduce a few things from history. Venture Capital firms really started to gain traction as a viable source of funding during or right before the tech boom of the 90’s. They played a big role in bank-rolling the launch and growth of many 90’s startup companies. Back then, it took a lot of capital to set up the infrastructure needed to start a large tech company. Websites needed to be built and coded, infrastructure (like servers, mainframes & networking components). They needed to be purchased and set up and run and maintained.

But, online companies looked nothing like traditional businesses. Like a restaurant or a manufacturer–it was all a little too uncertain and risky for banks to give out loans. So, venture capitalists and angel investors filled the void. They offered funding in exchange for equity.

The Beginning of the Business Pitch Deck

I imagine in the beginning these groups read the full business plans of potential deals. But as the venture capitalists got more busy, received more applications, and more and more founders looked to equity instead of debt financing, they likely couldn’t read a whole business plan for every applicant. One pagers and executive summaries helped, but even these were tiresome text-heavy documents to read through all day long. There was a need for a shorty, easier to digest document.

In comes graphic design tools for the masses. Microsoft PowerPoint was invented in 1987, and grew in it’s popularity through the 90’s. The appeal of PowerPoint was that you could use it to project a visual aid as you spoke to your audience. This meant they could see additional information, charts and pictures that provided more context to your speech. So founders started using these technologies when pitching to investor during those initial meetings.

Somewhere along the line, the ease and visual nature of the Slide Deck merged with the long-form business plan. And founders started sending visual documents created in PowerPoint and other slide deck design tools to investors before they met them.

So which came first the pitch deck or the business plan? The pitch deck is a child of the business plan. The business plan came first, then the pitch deck.

Why You May Not Need Both a Pitch Deck and a Business Plan

All of that said, today you may not need both a pitch deck and a business plan. It depends on your business stage and what your goals are. A business plan is a thorough document that contains “the plan” itself. If you have “the plan” itself written down in a variety of documents or sources of information than you may not need an official business plan document in the traditional sense. And at least not a 100 page one.

If you are looking to work with a pitch deck designer, it may be advantageous to have a full or partial business plan. Your pitch deck designer will most likely not assist you with business decisions and strategies. Rather, they will work with you–the expert–to tell your plan, ensure it is compelling to the investor audience, and well designed and visually appealing. You need to have a concept. And likely need to have done some level of research into your industry and competitors to work with a designer on your deck. But, you needed that anyway just to be an effective founder.

When You Need a Business Plan and Not a Pitch Deck

• If Seeking Debt Financing: Banks still review business plans, so you will need a business plan if you’re looking to get any kind of loan from a bank.
• When Raising Over $500K: If you’re raising a lot of money, you better have a plan for what you’re going to do with it. Investors will be doing due diligence, be prepared.
• When You Have Co-founders / Co-owners: When you have several cooks in the kitchen, it is helpful to have a written and agreed upon plan to make sure everyone stays on track and executes the way you intended. This should be a living document that is updated over time and as things change.

When You Need a Pitch Deck and Not a Business Plan

• When You are Seeking Equity Funding: If you’re looking for funding from venture capitalists, angel investors or saavy friends and family, you need a clear pitch deck.
• If You’re Networking with Investors: Not ready to get investment now, but have the opportunity to network with investors? You should have a pitch deck ready. First impressions are important, especially when building influential relationships.
• When Your Pitch in a Competition: In the startup community there are a lot of pitch events and competitions designed to give founders a chance to get exposure and practice pitching their company. You definitely need a pitch deck.
• When You Are Seeking CoFounders: If you’re looking for cofounders, there is no better way to convey to them your concept, and the value you can bring to the table than through a pitch deck.
• When You Apply to an Accelerator: Many accelerators require a pitch deck in order to apply. They use the deck to evaluate your company and decide whether or not you should join the next cohort.

Which is More Important, the Pitch Deck or the Business Plan?

In can be argued that the pitch deck is more important than the business plan, because it is likely to actually be seen by others. If you don’t have a good business pitch deck, you won’t get the opportunity to talk in more detail with potential investors. You won’t excite and evangelize the startup community and your early team around the company’s growth. And, it may ruin your ability to connect with key mentors and partners that could catapult your startup business.

That said, with no plan, the pitch deck will not work. Investors see pitches day-in and day-out. They can sense a snake-oil salesman, an impossible tech product, and an unprepared founder from a mile away. If you don’t know your stuff, then the best pitch may help you get the meeting, but it won’t help you get funding. But today, the plan doesn’t have to be in the form of a traditional text-based business plan.

I hope this has helped you to better evaluate the differences between pitch decks and business plans. And help why you might choose to develop one or each of them for your startup. If you’re building your pitch deck, I strongly encourage you to work with pitch deck experts. We  evaluated different options for getting your pitch deck designed here (including DIY, all the pros and cons).

Stacie Sterren

Related posts.

What is a Startup Accelerator?

What is traction?

Why You Need More Than One Pitch Deck

Can You Get Funding with a Bad Pitch Deck if your Startup is Good Enough?

Is it time? Does your startup need a pitch deck?

Business Plan vs Pitch Deck: The Differences and When You Need Them

Starting a new venture involves navigating numerous challenges, one of which is effectively communicating your business vision. Two essential tools in this process are the business plan and the pitch deck. While both are crucial, they serve different purposes and are used at different stages of your startup journey. In this article, we'll explore the key differences between business plans and pitch decks, what each includes, the level of detail required, the creation process, and specific use cases. Understanding these distinctions will help you use each tool to your advantage, ensuring you’re well-prepared to impress investors and guide your business to success.

Business Plans vs Pitch Decks - An Overview

When raising capital for your startup, both business plans and pitch decks are essential tools, each serving distinct purposes.

A business plan is a detailed document outlining your business’s objectives, strategies, market analysis, and financial projections. It provides a comprehensive roadmap for your business, guiding long-term strategic decisions and demonstrating viability to stakeholders such as banks and grant providers.

In contrast, a pitch deck is a concise, visually-driven presentation designed to quickly capture the interest of potential investors. It typically includes key highlights of your business, such as the problem you’re solving, your solution, market opportunity, business model, and team. The goal is to secure meetings and generate interest from venture capitalists, angel investors, and during startup competitions.

Both tools are crucial in fundraising, but they are used at different stages and for different audiences.

Business Plan

A business plan is a comprehensive document that outlines your business's objectives, strategies, market analysis, organizational structure, and financial projections. Its primary purpose is to serve as a detailed roadmap for your business, guiding strategic decisions and demonstrating the viability and potential of your venture to various stakeholders.

The business plan is essential for several key reasons:

• Securing Funding : It provides potential investors, banks, and grant providers with an in-depth understanding of your business model, financial forecasts, and strategic plans, helping to secure necessary funding.
• Strategic Planning: It acts as a guide for internal decision-making, helping founders and management teams align on goals and strategies.
• Attracting Talent: A well-articulated business plan can attract co-founders, key hires, and partner s by clearly outlining the business's vision and potential.

Use cases for a business plan include applying for loans, pitching to investors, and guiding internal strategy development. Each of these scenarios relies on the detailed and structured information that a business plan provides, making it an indispensable tool for startup founders.

Related resource: Startup Business Plan

A pitch deck is a concise, visually-driven presentation designed to quickly capture the interest of potential investors. It typically consists of around 10-20 slides that highlight the key aspects of your business, such as the problem you’re solving, your solution, market opportunity, business model, and team.

The primary purpose of a pitch deck is to provide a snapshot of your business that is engaging and easy to understand, aiming to secure meetings and generate interest from potential investors. Unlike the comprehensive nature of a business plan, a pitch deck is meant to be high-level and visually appealing, making it an effective tool for initial presentations.

Use cases for a pitch deck include:

• Investor Meetings: Pitching to venture capitalists and angel investors to secure funding.
• Startup Competitions: Presenting at demo days and competitions to gain exposure and interest.
• Partnership Discussions: Engaging potential partners and stakeholders by providing a clear and compelling overview of your business.

The pitch deck serves several important functions:

• Generating Interest: It is designed to grab the attention of venture capitalists, angel investors, and other stakeholders, encouraging them to seek more detailed information.
• Communicating Vision: The pitch deck helps convey your business idea succinctly, showcasing the problem you’re solving, your solution, and your unique selling points.
• Facilitating Meetings: A compelling pitch deck can lead to follow-up meetings, providing opportunities to delve deeper into your business plan and financials.

Related resource: Building Your Pitch Deck

What is Included in Each One

Understanding the structure and key components of business plans and pitch decks is crucial for effectively using each tool in your fundraising efforts.

A detailed and comprehensive business plan covers elements such as market analysis, financial projections, and strategic planning. In contrast, a pitch deck is concise and visually engaging, highlighting key aspects like the problem you’re solving, your solution, and your business model.

This section will provide an overview of what to include in each, highlighting the differences to help you tailor them to your needs.

A business plan is a detailed and comprehensive document that covers various aspects of your business. Key components typically include :

• Executive Summary: A brief overview of your business, including your mission statement, product or service offering, and basic information about your company’s leadership, employees, and location.
• Company Description: Detailed information about your business, including the problems you’re solving, your target market, and what makes your business unique.
• Market Analysis: An examination of your industry, market size, expected growth, and competitive landscape.
• Organization and Management: An outline of your business’s organizational structure, details about the ownership, and profiles of your management team.
• Products or Services Line: Detailed descriptions of your products or services, including the lifecycle of each product, and how they benefit your customers.
• Marketing and Sales Strategy: Your plan for reaching your target market, including pricing, advertising, and sales strategies.
• Funding Request: If you’re seeking funding, this section outlines your current funding requirements, future funding requirements over the next five years, and how you intend to use the funds you receive.
• Financial Projections: Detailed financial forecasts, including income statements, cash flow statements, and balance sheets for the next three to five years.
• Appendix: An optional section that includes resumes, permits, lease agreements, legal documentation, and other pertinent information.

A pitch deck is a more concise and visual presentation focusing on highlighting your business's key aspects. Key components typically include :

• Title Slide: The name of your business and a tagline or short mission statement.
• Problem Statement: A description of the problem your business aims to solve.
• Solution: An overview of your product or service and how it addresses the problem.
• Market Opportunity: Information on your target market and the potential market size.
• Business Model: An explanation of how your business will make money.
• Traction: Evidence of your business’s progress and momentum, such as sales figures, customer testimonials, or user growth metrics.
• Competition: An analysis of your competitors and your competitive advantages.
• Go-to-Market Strategy: Your plan for attracting and retaining customers.
• Financials: High-level financial projections and key metrics.
• Team: Information about your founding team and key advisors.
• Use of Funds: How you plan to use the investment you’re seeking.
• Closing Slide: A summary of your pitch and a call to action, often including your contact information.

Related resource: Key Slides In Your Pitch Deck

Each of these components plays a crucial role in communicating the essential aspects of your business to different audiences. While the business plan is thorough and detailed, the pitch deck is designed to be engaging and to the point, helping you quickly capture the interest of potential investors.

What Level of Detail is Needed for Each One?

Business plans and pitch decks differ significantly in the level of detail they require. Business plans are comprehensive and detailed, covering strategic projections and in-depth analyses. In contrast, pitch decks are high-level, focusing on engaging visuals and key highlights to quickly capture investor interest.

A business plan requires a high level of detail to comprehensively outline your business’s strategic vision, operational structure, and financial projections. Each component must be thoroughly developed to provide a clear roadmap for the business and demonstrate its potential to stakeholders. Here's a breakdown of the required level of detail for each key component:

• Executive Summary: This section should offer a concise yet comprehensive snapshot of your business, including your mission statement, the products or services you offer, and basic company information such as leadership, employees, and location. While brief, it should be compelling enough to attract further interest.
• Company Description: This part should delve deeply into your business, explaining the problems you're solving, your target market, and what makes your business unique. It should provide a clear picture of your business’s purpose and the value it offers to customers.
• Market Analysis: This section should include in-depth research on your industry, including market size, expected growth, and trends. A detailed competitive analysis is also crucial, highlighting your competitors' strengths and weaknesses and how you plan to differentiate your business.
• Organization and Management: Provide detailed profiles of your management team, including their backgrounds, expertise, and roles within the company. An organizational structure chart can be helpful here, showing how different roles and departments interrelate.
• Products or Services Line: Offer detailed descriptions of your products or services, including their lifecycle, development stages, and benefits to customers. Explain how your offerings meet the needs of your target market and any plans for future development or expansion.
• Marketing and Sales Strategy: This section should outline your strategies for reaching your target market, including pricing models, advertising plans, sales tactics, and distribution channels. Be specific about how you will attract and retain customers, including any partnerships or collaborations.
• Funding Request: If you are seeking funding, clearly outline your current and future funding needs, specifying how much you need, how you plan to use the funds, and any future funding requirements over the next five years. Provide a clear plan for how the funds will help achieve your business goals.
• Financial Projections: Provide detailed financial forecasts, including income statements, cash flow projections, and balance sheets for at least the next three to five years. This section should demonstrate your business’s financial viability and growth potential, with assumptions clearly stated.
• Appendix: Include any additional documents that support your business plan, such as resumes, permits, legal documentation, market research data, and any other relevant materials. The appendix should provide supporting evidence for the claims and projections made in your business plan.

Each of these components should be well-researched and thoroughly explained, offering a clear and detailed picture of your business and its potential. A comprehensive business plan not only helps in securing funding but also guides strategic decision-making and helps attract key partners and talent.

A pitch deck requires a concise yet engaging level of detail to capture the interest of potential investors and stakeholders effectively. Each component should be clear, visually appealing, and focus on the key highlights of your business. Here’s an outline of the necessary components and the level of detail required:

• Title Slide: Include your business name, logo, and a brief tagline or mission statement. This slide should set the tone and provide a quick grasp of your business identity.
• Problem Statement: Clearly and succinctly describe the problem your business aims to solve. Use visuals or anecdotes to illustrate the problem’s significance and relevance to your target market.
• Solution: Provide an overview of your product or service and explain how it addresses the problem. Highlight the unique aspects of your solution and how it stands out from existing alternatives.
• Market Opportunity: Present key information about your target market, including market size, growth potential, and trends. Use charts or graphs to make the data visually compelling and easy to understand.
• Business Model: Explain how your business will make money. Include details on your revenue streams, pricing strategy, and any monetization plans. Keep it straightforward but comprehensive enough to show viability.
• Traction: Highlight your business’s progress and milestones. This could include sales figures, user growth, partnerships, or any significant achievements. Use visuals like charts or graphs to showcase your momentum.
• Competition: Provide a brief analysis of your competitors and articulate your competitive advantages. Use a comparison chart to highlight how your business outperforms or differentiates from others in the market.
• Go-to-Market Strategy: Outline your plan for attracting and retaining customers. Include marketing and sales strategies, distribution channels, and any partnerships that will help you reach your target market effectively.
• Financials: Summarize your key financial projections and metrics. Include revenue forecasts, profit margins, and break-even analysis. Use simple charts or graphs to make the data accessible and impactful.
• Team: Introduce your founding team and key advisors. Highlight their relevant experience and roles within the company. Use photos and brief bios to humanize your team and build credibility.
• Use of Funds: Explain how you plan to use the investment you’re seeking. Provide a clear and specific breakdown of how the funds will be allocated to drive growth and achieve your business goals.
• Closing Slide: Summarize your pitch and include a call to action. Provide your contact information and invite investors to follow up for more detailed discussions.

Each component should be crafted to deliver maximum impact with minimal text, using visuals to convey key points effectively. The goal is to engage your audience, provide a compelling snapshot of your business, and secure further interest or meetings.

What Does It Take to Create Each One?

Creating a business plan and a pitch deck requires different approaches due to their distinct design, data, and storytelling requirements. Understanding the process for building each will help you allocate the necessary resources and time effectively.

Building a business plan is a detailed and collaborative effort that involves:

• Extensive Research: In-depth market analysis, competitive landscape assessment, and financial forecasting.
• Cross-Department Collaboration: Input from finance, marketing, operations, and management teams to ensure accuracy and comprehensiveness.
• Detailed Documentation: Crafting a thorough narrative with strategic projections and detailed analyses.

The process is time-intensive, typically taking several weeks to a few months, depending on the business complexity and data availability.

Creating a pitch deck is a more streamlined process that emphasizes:

• High-Level Research: Gathering essential data on market size, competition, and key financial metrics.
• Visual Design: Collaborating with designers to create engaging and visually appealing slides or using templates that make designing easier such as canva or pitch .
• Concise Storytelling: Developing a compelling, succinct narrative highlighting the business’s value proposition and growth potential.

This process is quicker, usually taking a few days to a couple of weeks, depending on the need for iterations and design work. Understanding these differences ensures you allocate the right resources and time for each document, aligning with their specific purposes and audiences.

Use Cases for Business Plans and Pitch Decks

Understanding when to use a business plan versus a pitch deck is crucial for effectively communicating your business vision and securing stakeholder support. Here are specific situations where each document would be most effective.

• Securing Bank Loans: A detailed business plan is essential when applying for a bank loan . It provides lenders with comprehensive information about your business model, financial projections, and market analysis, demonstrating your ability to repay the loan and manage financial responsibilities effectively.
• Internal Strategic Planning: A business plan guides internal decision-making and strategic planning . It helps align the management team on long-term goals, operational strategies, and resource allocation, ensuring everyone is working towards the same objectives.
• Attracting Key Hires and Partners: A well-structured business plan can attract top talent and potential business partners by clearly outlining the business’s vision, growth potential, and strategic direction. It provides a detailed understanding of the company’s mission and future prospects, making it an attractive opportunity for skilled professionals and collaborators.
• Investor Meetings: A pitch deck is perfect for pitching to venture capitalists and angel investors. Its concise, visually engaging format quickly captures the interest of potential investors, providing an overview of your business, the problem you’re solving, and your market opportunity, leading to follow-up meetings and deeper discussions.
• Startup Competitions: During startup competitions and demo days, a pitch deck is essential. It succinctly presents your business idea, traction, and competitive edge, helping you stand out in a crowded field and attract potential investors or partners who attend these events.
• Initial Partnership Discussions: When initiating discussions with potential partners, a pitch deck effectively communicates your business’s value proposition and strategic fit. It offers a compelling snapshot of your business, encouraging partners to explore collaboration opportunities further.

By understanding these use cases, you can strategically utilize business plans and pitch decks to engage different audiences and achieve your business objectives effectively.

Tailor Your Business Plan and Pitch Decks to Your Needs with Visible

Both business plans and pitch decks are essential tools for startup founders, each serving distinct purposes and requiring different levels of detail. A business plan provides a comprehensive roadmap for strategic planning and securing funding, while a pitch deck is a concise, visually engaging presentation designed to capture investor interest quickly.

Share your pitch deck confidently with Visible, a purpose-built platform for fundraising. Our pitch deck sharing tool is completely integrated with our fundraising CRM and investor updates platform. Founders can also leverage their brand by hosting decks from their own domain and highlighting brand colors.

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Pitch Deck VS. Business Plan: What is the Difference

Business Plan Template

• May 8, 2024

Pitch deck or a business plan—confused about which of these business documents you should create for your business?

Well, the short answer is both.

But, in a thriving startup world, where time’s a chase, knowing what will help you to make the most significant impact will make the choice easier.

Through this blog post, let’s help you understand the key differences between these two documents, i.e. pitch deck vs business plan , and instances when you will need them.

Ready to get started? Let’s dive right in.

What is a pitch deck?

A pitch deck is a concise visual presentation, often used by startups and emerging entrepreneurs, to introduce their business potential in front of investors and potential stakeholders.

These presentations explain the key details of your plan such as the problem, solution, revenue model, traction, financials, and organizational team through engaging visuals and simple text blocks.

Pitch decks hook the audience to your excellent business idea and persuade them to engage further or take action.

Pitch decks are important for a quick business introduction. But let’s now gather a basic overview of what a business plan is.

What is a business plan?

A business plan is a professional document outlining the goals, strategies, and operational aspects of your business. It serves as a guide for decision-making and offers a roadmap to achieve your business objectives.

In General business plan include key components like executive summary, company overview, market analysis, products and services, marketing and sales strategy, operation plan, management team, and financial plan.

It’s one detailed document that will help you to secure funds from potential investors.

Now, that you have gathered a fair understanding of pitch decks and business plans, let’s understand what makes them different.

Difference between a pitch deck and a business plan

Pitch decks are crisp offering a macro overview of your business idea through sharp and remarkable visuals. Business plans, on the other hand, are immaculately detailed, offering a micro overview of what your business does and where it aims to reach.

Well, the differences between a business plan and a pitch deck are fundamental and we will now explore those differences in detail.

Pitch decks serve the purpose of familiarizing the audience with your business idea in a short time. They capture the audience’s attention, spark excitement about a business idea, and help you secure further discussions and meetings with potential investors.

Business plans, on the other hand, offer an in-depth detailing of your business framework, financial projections, and strategic objectives. They are required by banks to grant loans, investors to evaluate the business’s viability, and internally to guide the management and operations.

2. Length and Format

A slide deck is precise and concise. It summarizes your entire business idea within 10-15 slides, and sometimes even less.

These business documents are heavier on visual components. Instead of paragraphs, the important information is usually conveyed through crisp statements and bullet points.

Business plans, however, are extremely detailed and lengthy. While the length of a typical traditional plan varies between 20-100 pages, a startup business plan in a lean format can be as small as 1-2 pages.

These professional documents are heavier on text and include tables and charts to support the textual content. The design is kept minimal and professional and the information is organized neatly into digestible sections.

A pitch deck includes high-value information summarizing only the key aspects of your business plan. They focus more on the problem and the solution, revenue model, traction, competitive advantage, and key financial metrics of your business.

Such presentations also include your funding demand and are pretty straightforward in terms of content.

Business plans, however, provide extensive information detailing your business idea, strategies, resources, financials, and even the assumptions and justifications.

Generally, a comprehensive business plan includes an executive summary followed by a detailed description of the business, market analysis, products and services, marketing and sales strategies, operations, management, and financials.

However, one can adjust the contents and details of a business plan depending on their objective to write a business plan.

4. Audience

Pitch decks are essentially prepared to pitch to investors and venture capital firms for equity funding. However, that’s not it.

The very purpose of a business pitch deck is to educate the people about your business idea and stir their interest. So anyone who wants to acquaint themselves with the core fundamentals of your business in a short time is an ideal audience for a pitch deck.

Similarly, a business plan is also intended for a vast audience, including but not limited to, loan officers, investors, stakeholders, and the company’s internal team.

In fact, anyone who wants to have a deep, thorough insight into your business’s strategies, policies, operations, and finances can benefit from reading your business plan.

And those are the most fundamental differences between a pitch deck presentation and a business plan. However, let’s now understand different instances when you will require these business documents.

When to use a Pitch Deck?

A pitch deck offers a snapshot of your business and is most suitable for situations, events, and audiences that prefer to gather a level of information within a short span.

Here are a few instances where you would definitely require a business pitch deck:

• When you want to introduce your startup idea at investor meet-ups, networking events, and accelerator programs.
• When you want to get initial equity funding from investors and VC firms.
• When you want to secure an in-person meeting with an investor.

However, for all this to happen, you need a pitch deck that brilliantly captures the key essence of your business.

Well, it’s not that easy. From design to content—it takes a lot to create a 10-page, compelling pitch deck.

You must have figured out that creating a pitch deck is challenging given the crispness, conciseness, and briefness it requires.

Not anymore. You can now use AI to create your strategic pitch decks from scratch, requiring zero designing.

 Ditch your old-school pitch deck creation methods

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When to use a Business Plan?

A well-mapped business plan is an asset that will take your business to quite a few places helping you realize your business goals. If you are wondering where will you require a business plan, here you go:

• When you want significant funding from potential investors.
• When you want to validate your business idea.
• When you want to plan for subsequent business stages that require a strategic roadmap.
• When you want to explain your complex business model.

Now, a business plan can only help achieve all those things when it offers a true and realistic overview of your business and its strategies.

Absolutely, it’s a difficult task. But with the right tools and aid, you can create a realistic plan that offers a roadmap to success for your business.

Say goodbye to boring templates

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What to Write First—Business Plan or Pitch Deck

Ideally, a business plan should be drafted before creating a pitch deck.

The business plan demands thorough analysis and research. Writing it first will encourage you to explore the business nuances in detail.

You are more in sync with your business idea and its strategies by the time you are done writing your business plan. Such understanding is essential to creating a pitch deck that reflects your startup’s potential in a true light.

A Way Forward

It’s evident that you need both—a business plan and a pitch deck, to venture successfully into your market. Instead of contemplating, let’s make business planning easier for you.

Upmetrics offers a range of AI-powered solutions for all your business and strategic planning needs.

Whether you need an AI business plan generator to create a thorough business plan or AI pitch deck generator for a compelling pitch deck—Upmetrics has got you covered.

No need to spend any more time worrying about where and how to get started. Our perfectly designed solutions will guide you to create stellar business documents in no time.

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Frequently Asked Questions

Is a pitch deck similar to a business plan.

Not really. Business plans are textual offering a detailed overview of your business idea. Pitch decks, however, are concise and visual. It can be said that pitch decks are a byproduct of business plans. However, they are not the same.

When should you use a business plan?

Business plans should be used when you want to obtain financing from traditional banks. However, even angel investors would ask for a business plan when the funding demand is substantial. Apart from this, you use a business plan for strategic planning and internal guidance.

When should you use a pitch deck?

Pitch decks should be used to introduce your business idea to different audiences. It is extensively used to pitch potential investors and persuade them for financing.

Do I need a pitch deck or a business plan?

A business requires both a pitch deck and a business plan. It is preferable to write a business plan first before creating a pitch deck to capture the essence of your business effectively.

About the Author

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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Home / Blog / Pitch Deck vs. Business Plan: What is the Difference?

Pitch Deck vs. Business Plan: What is the Difference?

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Deciding between a pitch deck and a business plan for your next fundraiser? In reality, both documents play an important part in your fight for the next round. 

• Research shows that a clear, concise pitch deck can increase the chances of securing an initial meeting with investors by up to 72% .
• A business plan reduces internal confusion by 25% by clearly outlining the goals, strategies, and financial projections, leading to a 30% increase in team collaboration .

Both documents require heavy research and are designed to convince investors to back your venture. However, they accomplish it in different ways.

Having raised over $505M in 2023 for startups with our pitch decks and business plans , we’ll walk you through a detailed Pitch deck vs. Business plan comparison and their role in the fundraising game.

What is the pitch deck?

A pitch deck is a 10-20-slide presentation showcasing the potential of your business idea and startup to investors. Briefly and compellingly, it introduces your company, product, market, business model and overall strategy. 

An effective must showcase your market research, traction to date, and a roadmap to where you want to get. No one-sized pitch deck exists, so you can even pitch someone in the elevator .

Think of it as an introductory sales document designed to pique investor interest and encourage further dialogue.

Components of a pitch deck:

• Introduction: Brief overview of your company and its purpose.
• Problem Statement: Clearly define the problem your product or service solves.
• Solution: Describe your product or service and how it addresses the problem.
• Market Opportunity: Showcase the potential market size and target audience.
• Business Model: Explain how your company plans to generate revenue.
• Traction: Highlight any milestones, achievements, or user statistics.
• Market Strategies: Outline your marketing and sales approaches.
• Competitive Analysis: Identify and analyze your competitors.
• Team: Introduce key team members and their roles.
• Financial Projections: Present forecasts for revenue, expenses, and profitability.
• Ask/Investment: Clearly state what you’re seeking from potential investors.

What is a business plan?

A business plan is a 30-100-page document showcasing an in-depth analysis of your business idea to potential investors to convince them to invest. It elaborates on things like:

• Your sales, marketing, and operational plans for growth
• Where your company will be in the next 1,3 or 5 years
• A step-by-step plan of how you’ll get there.

The business plan is the first part of the investor’s due diligence process before finalizing the deal. It lays out more detailed research on your industry and competitors, contains many charts, graphs, and pictures, and is very text-heavy. 

Think of it as a comprehensive blueprint of your venture designed to persuade interested investors to pull the trigger and invest.

Components of a business plan:

• Executive Summary: A brief business overview, goals, and plans.
• Company Description: Details about your business, mission, vision, and structure.
• Market Analysis: Research your industry, market, and competitors.
• Organization and Management: Information about your team, structure, and key personnel.
• Product or Service Line: Description of your offer and its benefits.
• Marketing and Sales: Your strategies for promoting and selling your product or service.
• Funding Request: If you seek funding, outline your financial needs.
• Financial Projections: Projected financial statements, like income statements and balance sheets.
• Appendix: Additional supporting documents, charts, graphs, etc.

What are the differences between a pitch deck and a business plan?

While the business plan and pitch deck give a view of your venture, they serve different goals, reach different audiences, and build the story differently. These distinctions manifest in the length, format, target audiences, and funding stages. 

Length and Format

• Pitch Deck:

Brief and eye-catching 10-20 slides with engaging visuals, like images, charts, and minimal text. Generally highlights critical points, like product or service, target market, business model, and future potential.

• Business Plan:  

Detailed 30-100 page text-heavy document armed with visuals like charts and graphs. It typically emphasizes projected revenue, expenses, and profitability through financial statements and forecasts. The document details strategies for sales, marketing, operations, and human resources, along with a description of team members’ expertise, experience, contributions to the company’s success, etc.

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Targeted Audience

• Pitch Deck: Investors (initial stages)
• Business Plan: Investors (due diligence), internal team

Stages and Objectives

• Pitch Deck: 1. Shines in early stages: Pre-seed, seed, Series A. 2. Captivates investors: Concisely delivers the problem, solution, market, and team.
• Business Plan: 1. Dominates later stages: Series B and beyond. 2. Secures substantial funding: Demonstrates viability and potential return on investment (ROI).

Frequency of use

• Pitch Deck: 1. High Frequency: Used frequently and repeatedly throughout the fundraising process. You might prepare several variations tailored to different investors or stages of funding. Examples: Initial investor meetings, pitch competitions, and conferences seeking investment opportunities.
• Business Plan: 1. Lower Frequency: Typically used once during the later fundraising stages, specifically during due diligence. 2. Focus: Providing detailed information for investors to thoroughly assess your business’s viability.

Pros and cons: Pitch Deck vs. Business Plan

Advantages:

• Comprehensive: This thoroughness is crucial for investors, lenders, and internal stakeholders.
• Strategically complete: Aids decision-making, resource allocation, and risk management.
• Supportive fundraising: Studies suggest that companies with a well-crafted business plan are 18% more likely to secure funding than those without one.

Disadvantages:

• Time-consuming: Requires potential expertise in areas like financial modelling and market research.
• Outdated quickly: Market dynamics and business strategies can evolve rapidly, necessitating regular updates to the plan to maintain its accuracy and relevance.
• It may not be read: Lack of time and poorly structured info can push away the potential investor.
• Concise and engaging: Studies reveal that audiences lose focus after 10-20 minutes of presentations. Pitch delivers a clear and quick message.
• Easy to adapt and share: Adapting the pitch deck for various audiences and situations is simpler due to its brevity.
• This can lead to meetings: Engaging presentations foster positive connections with potential partners and lay the groundwork for long-lasting collaborations.
• Sometimes limited information: By definition, it does not provide the in-depth financial analysis, operational details, and market research needed for comprehensive due diligence.
• Less suitable for later stages: As funding requirements and investor expectations increase, a pitch deck alone may not be sufficient for securing more significant investments.

Which is more important, the pitch deck or the business plan?

There is no one-size answer; in most cases, you need both. The importance of each depends on your industry and fundraising stage. The pitch deck is crucial early on , but investors scrutinise the business plan for details as you progress . 

The pitch deck is vital for visibility. Without it, you may miss opportunities with investors and hinder connections with mentors and partners essential for your startup’s success.

On the other hand, the business plan is crucial to validate everything you’ve outlined in your pitch deck. Investors can quickly spot unprepared founders or unrealistic propositions. While a compelling pitch may secure a meeting, a thorough plan will convince investors to back your venture.

Important: A well-crafted pitch deck often stems from a strong business plan.

When to use a business plan and not a pitch deck

• If you seek debt financing: Banks rely on business plans, emphasizing their importance for loan applications.
• If you fundraise above $500k: Careful planning is crucial for substantial fundraising. Investors will scrutinize your venture, so be thoroughly prepared.
• If you have cooperative ownership planning: A written plan is essential for co-owners to navigate challenges together, staying true to the initial vision while embracing necessary changes.

When to use a pitch deck and not a business plan

• When attracting equity investment: A concise pitch deck is essential to secure funds from venture capitalists, angel investors, or knowledgeable friends and family.
• When looking for networking with potential investors: Crafting a positive initial impression is paramount.
• For pitching opportunities for founders: Explore pitch competitions in the startup community, seizing opportunities for exposure and honing your pitching abilities with a solid pitch deck.
• When seeking co-founders: If you’re looking for cofounders, there is no better way to convey your concept and the value you can bring to the table than through a pitch deck.
• When applying to accelerator programs: A well-crafted pitch deck is typically required. It is a critical asset in the assessment process for entry into the accelerator’s next cohort.

You need both 

Need to grab attention and lock connections? Use a pitch deck. Need to showcase in-depth details and long-term potential? Use a business plan. Both tools are paramount in navigating your fundraising journey effectively.

Want to know how to craft pitch decks that secure investor interest? Check our pitch deck hub to learn all about it straight from the trenches.

CONTENT WRITER

Hey there! I'm Anastasiia, a Content Writer at Waveup. With my marketing expertise and storytelling magic, I turn complex data and industry insights into your startup playbook, making the business world a breeze for you! At Waveup, I work with brilliant folks who make insights a never-ending flow. So, join, read, and enjoy!

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Pitch Deck vs Business Plan — Which One Do You Need?

Uncover the differences between a pitch deck and a business plan and discover which is essential for your startup. Learn and create with PitchBob.

In this dynamic world, where ideas can spark revolutions and dreams become realities, two essential companions await your journey: the pitch deck and the business plan. These tools aren’t just documents but the wind beneath your entrepreneurial wings. Let’s set sail into the world of pitch decks and business plans, unraveling their magic and discovering when to wield their power.

Imagine standing at the helm of a ship, gazing at the uncharted waters ahead. Your startup is that ship, and at your disposal, you have instruments that can guide it through the unpredictable currents of the market. These instruments are the pitch deck and the business plan — crafted to impress and chart your course with purpose and strategy.

What is a Pitch Deck?

A pitch deck isn’t just a collection of slides; it’s the vibrant tapestry that weaves your startup’s narrative. Visuals, text, and passion converge to create a captivating story. Think of it as your startup’s cinematic trailer, offering a sneak peek into the adventure you’re embarking upon. It’s not just about presenting facts; it’s about evoking emotions and igniting curiosity.

When you’re at a startup event surrounded by potential investors and decision-makers, it is your chance to condense your startup’s essence into a visually striking, emotionally resonant package. The pitch deck shines brightest in scenarios where time is short, attention spans are fleeting, and impact is paramount.

What is a Business Plan?

Now, let’s steer our ship toward a different horizon. Imagine a comprehensive map that not only outlines your journey but also details every landmark, every challenge, and every resource needed. This map is your business plan — a strategic document that transcends mere ideas and dives deep into strategy, operations, and financial projections. It’s the blueprint that guides your ship through uncharted waters.

Where your startup has gained some traction, you’re no longer just presenting an idea. You’re showcasing a vision backed by research and planning. This is where the business plan takes center stage. The business plan becomes your guiding star when seeking substantial investments, forging partnerships, or outlining your startup’s long-term trajectory. The document demonstrates your commitment, knowledge, and foresight to potential investors and stakeholders.

Main Differences Between Business Plan and Pitch Deck

Let’s pull out our magnifying glass and explore the nuances that set these two powerhouses apart:

1. Purpose and Usage:

• Pitch Deck: The pitch deck is akin to your startup’s captivating movie trailer — a visual and concise introduction that sparks curiosity, leaving the audience eager to learn more about your venture. It’s your chance to pique interest and create a memorable initial impression that lingers.
• Business Plan: In contrast, the business plan is your startup’s comprehensive screenplay. It delves deep into the plot, character development (or market analysis), and intricate details of your venture’s journey. This document captures attention and provides a comprehensive roadmap for potential investors, partners, and your internal team.
• Pitch Deck: Like a thrilling teaser, the pitch deck is succinct, comprising a carefully curated collection of 10-15 impactful slides. Each slide is a trailer frame, revealing essential plot points of your startup’s story.
• Business Plan: In-depth, the business plan reigns supreme. It stretches across 20 to 50 pages, meticulously laying out every scene of your startup narrative. Your comprehensive manuscript covers everything from your startup’s origin story to its grand finale — the financial projections.

3. Audience Focus:

• Pitch Deck: The pitch deck is tailored to a bustling audience, including potential investors and partners. They have limited time, seeking a snapshot of your startup’s possible and unique selling points. The deck’s visuals and succinct content aim to capture their attention swiftly.
• Business Plan: Here’s where you zoom in. The business plan caters to investors, potential partners, and your internal team. It invites them to explore the finer nuances of your startup universe — the market analysis, the competitive landscape, and the intricate strategies that will propel your venture forward.

4. Creation Process:

• Pitch Deck: Crafting a pitch deck is a delicate dance of creativity and strategy. It’s about weaving compelling visuals, impactful messaging, and the right balance of information. Each slide should be visually appealing, grabbing attention and guiding the audience through the story.
• Business Plan: Assembling a business plan is akin to preparing an epic saga. It requires meticulous research, strategic planning, and attention to detail. Your business plan showcases your commitment to realizing your startup’s potential, demanding a systematic approach to ensure each detail is accurate and well-structured.

Pitch Deck vs. Business Plan — At What Stage Will You Need Them?

As you journey through the startup landscape, timing is everything. Knowing when to whip up your pitch deck and business plan is essential for a delectable startup recipe, just as a chef adds ingredients at precisely the right moments. Let’s break it down, shall we?

When Do You Need a Pitch Deck?

Imagine you’re at the starting line of a grand marathon. The gunshot goes off, and you sprint to capture attention, make connections, and spark interest in your startup. This is where the pitch deck becomes your secret weapon. In the early stages of your venture, when your idea is ripe with excitement and potential, your pitch deck steps into the limelight. Think of it as your startup’s dazzling overture — a concise yet impactful introduction that beckons investors, partners, and decision-makers to notice.

You’ll want your pitch deck ready when you’re:

• Introducing your startup idea at networking events, pitch competitions, or investor meet-ups.
• Seeking initial funding to transform your idea into a reality.
• Elevating your startup’s visibility and attracting potential collaborators.

When Do You Need a Business Plan?

Now, picture your startup as a mighty oak tree. It began as a tiny seed, and now it’s growing tall and strong, casting its shadow across the industry. But as it grows, it requires a well-thought-out plan to sustain and nurture its growth. Enter the business plan. When your startup has evolved beyond the ideation phase and is gearing up for significant growth, that’s the cue for your business plan to take center stage. It’s not just about capturing interest; it’s about showcasing your startup’s depth, potential, and strategic prowess.

It’s time to unleash your business plan when you’re:

• Seeking substantial funding from investors who want a comprehensive view of your venture’s future.
• Navigating partnerships and collaborations that require a detailed roadmap.
• Planning the subsequent phases of your startup’s growth and expansion.

How Can PitchBob Help to Create Pitch Deck and Business Plan?

Hold on to your compass because we’re introducing you to a game-changer — PitchBob! Imagine a platform where creating pitch decks and business plans is efficient and creative. PitchBob empowers you with customizable templates, user-friendly tools, and the freedom to infuse your unique voice into your documents. Whether you’re aiming for elegance or innovation, PitchBob has you covered.

In a world where startups rise like constellations, your pitch deck and business plan are the guiding stars that illuminate your path. They’re not just documents^; they’re your dynamic ensemble, your tag team. The pitch deck takes the stage, captivating hearts, and minds, while the business plan works backstage, ensuring your startup’s strategy is solid and future-proof.

As you navigate the waves of uncertainty and opportunity, remember that you’re armed with these potent tools. Whether stepping onto a stage bathed in the spotlight or sitting across the table from investors in a boardroom, your startup’s journey is powered by the fusion of innovation, strategy, and vision. May your pitch be as compelling as your plan is meticulous, and may your startup voyage be filled with discovery, triumphs, and the realization of your dreams.

Disruptive Partners OÜ Harju maakond, Tallinn, Kesklinna linnaosa, Tornimäe tn 3 / 5 / 7, 10145

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The Entrepreneur's Arsenal: Pitch Deck vs. Business Plan

Pitch deck vs. business plan: which one do you need for your business, and when? As a businessman or entrepreneur, do you sometimes wonder why your potential investors aren't responding after you've sent them a long and detailed business plan or a catchy pitch deck? This could be due to the minimal information provided in the pitch deck or the lengthy, boring, and irrelevant details in the business plan that repelled them from reaching back to you. However, you should also know how to send pitch decks to investors. Therefore, it's crucial for an entrepreneur to understand which approach is best for their venture. Before seeking out investors, one should be very well aware of the difference between a pitch deck and a business plan. Luckily, we have all the information you need. Check out our resource on how to send a pitch deck to investors.

Pitch Deck vs Business Plan

What are pitch decks and business plans, and how do you write them? Let’s find out.

A business plan identifies, describes, and analyzes a business opportunity and/or an existing business. It focuses on the technical, financial, and economic viability of the idea, and explains in detail the plans your company has for the next 1, 3, and 5 years. This document is used as a reference point by potential investors when deciding whether or not to invest in your company. Furthermore, it's frequently used in a due diligence step in the funding process. A pitch deck, on the other hand, is a much more summarized version of a business plan that aims to excite investors about a company, to set up a second meeting and the possibility of an investment discussion. It is a pitch presentation used by business owners or entrepreneurs to give potential investors, like venture capitalists or angel investors, a concise but informative overview of their startup or company. Investors can use it to see where your business stands and where it is going, and decide whether they want to support it in getting there. It is purposefully sent to potential investors in order to set up a face-to-face meeting or used as a visual aid during a live presentation to potential investors.

Included Information

A business plan contains the research you have conducted on your industry and competitors as well as your company's operational, marketing, and sales strategies. It also includes financial analysis, growth, success projections, and a road map of where your business will be in the future and how it will get there. These nine sections are combined in a traditional business plan design in one way or another:

• Executive summary
• Business description
• Market research
• Operational plan and management
• Service or line of goods
• Sales and marketing
• Money request
• Financial estimates

If you want a professional business plan, it is highly recommended to use a business plan consultant. On the other hand, a pitch deck usually covers the following sections:

• Introduction
• Target market
• Marketing and sales strategy
• Pitch Deck Competition Slide
• Funding request
• Financial Strength

You can find all the details in our Pitch Deck Outline article. Another element of information that should be included in a pitch deck is how much money the company intends to raise, for what amount of equity, and how the money will be spent. Therefore, it must contain expected financials and a pre-money company valuation. You can also include a timeline of significant events in the company's history, which will help convince investors to approve the funding.

The business plan is a lengthy, in-depth document that typically has 10–100 pages and is created in Word. It is primarily text-based. On the other hand, the pitch deck's length ranges between 10 and 20 pages and is produced using PowerPoint with the intention of using visual aids such as pictures, graphs, tables to convey as much of the critical information as quickly as possible.

Situations Where a Business Plan Is Needed

• Obtaining Debt Financing from Conventional Banks: If you want to obtain any type of loan from a bank, you will need to submit a business plan, as they still review them.
• Company Having Multiple Co-Founders and Co-Owners: A business plan is quite helpful in managing a bigger board of seniors in the company. It ensures that everyone sticks to the company's core values and carries out the intended plans to achieve long-term goals. This should be a dynamic document that is continually updated as circumstances warrant.
• Fundraising over $500K: If you are raising a large amount of cash, you better have a strategy in place for how you are going to use it. Be ready for due diligence from investors.

For an in-depth guide on startup business models , click here.

Situations Where a Pitch Deck is Needed

• Meeting or Starting a Conversation with an Investor: A pitch deck is a conversation starter that encourages investors to get in touch with you. You can email a PDF file or send a printed copy to start building a relationship with investors.
• Pitching in a Competition: The startup community organizes many pitch competitions and events that provide business founders the opportunity to practice pitching their business and gain exposure. In these competitions, a pitch deck is a must-have document that effectively communicates the startup plan.
• Seeking Equity Funding: If you are seeking funding from venture capitalists, angel investors, or knowledgeable friends and family, you need a clear pitch deck.

What to Write First - Business Plan vs Pitch Deck?

At the initial phase of a business, a fundamental document called a business plan is written. This plan is updated as the business develops and as needs and goals change over time. The lengthy document can serve a variety of purposes, including internal use within the company or in banks that still require business plans for loan applications today. Additionally, the business plan document can be very useful in creating a compelling pitch deck. In the eyes of professionals, the pitch deck is considered a child of the business plan. Having a prepared business plan makes it much easier to get depth and length in your plans, which eventually results in more clarity and strong points that you could include in a pitch deck. Research is already completed when writing a business plan, which allows the pitch deck to focus on composing the already-existing information in such a manner that encourages the investor to approve the funding you need.

The Pros and Cons of a Business Plan vs. a Pitch Deck

Both business plans and pitch decks have their advantages and disadvantages. Let's take a closer look at the pros and cons of each.

Business Plan Pros

• Comprehensive: A business plan is a comprehensive document that covers all aspects of your business, from your market research to your financial projections. It may be helpful to seek assistance from a financial modelling agency when creating your financial projections.. It provides potential investors with a detailed understanding of your business and its potential for success.
• Strategic: A business plan helps you to think strategically about your business. By analyzing your industry, your competitors, and your own strengths and weaknesses, you can create a plan that maximizes your chances of success.
• Useful for fundraising: A well-written business plan can be an effective tool for raising funds from investors. It provides potential investors with the information they need to make an informed decision about whether to invest in your business.

Business Plan Cons

• Time-consuming: Writing a comprehensive business plan can be a time-consuming process. It requires a significant amount of research, analysis, and writing.
• Outdated quickly: Business plans can quickly become outdated as your business evolves and circumstances change. This means that you may need to update your business plan regularly to ensure that it remains relevant.
• May not be read: Some investors may not have the time or patience to read a lengthy business plan. This means that your hard work may go to waste if your plan is not read by the right people.

Pitch Deck Pros

• Concise: A pitch deck is a concise document that provides potential investors with a quick overview of your business. It is designed to be easy to read and understand, which makes it more likely that it will be read by potential investors.
• Engaging: A well-designed pitch deck can be an engaging and memorable way to present your business to potential investors. It can help you to stand out from the competition and make a strong impression.
• Can lead to meetings: A pitch deck is often used to secure meetings with potential investors. If your pitch deck is well-received, it can lead to a face-to-face meeting where you can provide more detailed information about your business.

Pitch Deck Cons

• Limited information: A pitch deck provides only a limited amount of information about your business. This means that potential investors may not have a complete understanding of your business and its potential.
• Not suitable for all businesses: A pitch deck is not suitable for all businesses. If your business is complex or requires a significant amount of explanation, a pitch deck may not be sufficient.
• Not as useful for fundraising: While a pitch deck can be used to secure meetings with potential investors, it may not be as effective as a business plan for actually raising funds.

Ultimately, the decision to use a business plan or a pitch deck will depend on the specific needs of your business and the goals you hope to achieve. It's important to understand the pros and cons of each and use them appropriately to effectively communicate your ideas to potential investors.

How to Create a Winning Pitch Deck

Creating a pitch deck that stands out can be a challenging task, but it's essential if you want to attract investors to your business. Here are some tips to help you create a winning pitch deck:

1. Start with a Strong Introduction

Your introduction slide should grab investors' attention and make them want to learn more about your company. Use a catchy tagline, a powerful image, or a compelling statistic to draw them in.

2. Focus on the Problem You're Solving

Your pitch deck should explain the problem you're solving and why it matters. Use real-world examples and statistics to illustrate the problem and show why it's important.

3. Explain Your Solution

After you've described the problem, explain how your product or service solves it. Be clear and concise, and focus on the benefits of your solution.

4. Show Traction

Investors want to see that your company is gaining traction and making progress. Include data on customer acquisition, revenue, and growth to show that your business is on the right track.

5. Describe Your Marketing and Sales Strategy

Your pitch deck should explain how you plan to market and sell your product or service, including specifics on your target market, your marketing channels, your sales process, and any startup market research services you may use to gain insights into your target audience and industry.

6. Highlight Your Competitive Advantage

Investors want to know what sets your business apart from the competition. Explain your competitive advantage and show how it gives you an edge in the market.

7. Be Realistic About Financial Projections

Your pitch deck should include financial projections, but they should be realistic. Don't exaggerate your projections or make unrealistic promises. Instead, focus on achievable goals and realistic timelines.

8. Keep It Simple and Visual

Your pitch deck should be simple and easy to follow. Use visuals, such as graphs, charts, and images, to convey your message and make your presentation more engaging.

9. Practice, Practice, Practice

Finally, practice your pitch deck until you're comfortable delivering it. Practice in front of friends, family, or colleagues, and ask for feedback. Refine your presentation until it's polished and persuasive.

By following these tips, you can create a winning pitch deck that will help you attract investors and grow your business. Remember to start with a strong introduction, focus on the problem you're solving, explain your solution, show traction, describe your marketing and sales strategy, highlight your competitive advantage, be realistic about financial projections, keep it simple and visual, and practice, practice, practice.

Tips for Writing a Compelling Business Plan

Writing a business plan can be a daunting task, but it's an essential step in securing funding for your business. Here are some tips to help you write a compelling business plan:

1. Know Your Audience

Before you start writing your business plan, it's essential to know your audience. Who will be reading your plan? What are their goals and objectives? What information do they need to make a decision? By understanding your audience, you can tailor your plan to their needs and increase your chances of success.

2. Keep It Concise

While a business plan is a detailed document, it's essential to keep it concise. Avoid using jargon or technical terms that your audience may not understand. Instead, use short sentences and simple language to convey your message. Use bullet points and headings to break up the text and make it easier to read.

3. Focus on Your Unique Value Proposition

Your unique value proposition is what sets your business apart from the competition. It's essential to focus on this in your business plan. Explain why your product or service is better than what's already available in the market. Show how you plan to differentiate yourself and capture market share.

4. Be Realistic

When writing your business plan, it's essential to be realistic. Don't exaggerate your projections or make unrealistic promises. Instead, focus on achievable goals and realistic timelines. Provide evidence to back up your claims and show that you've done your research.

5. Include Financial Projections

Financial projections are a crucial part of any business plan. They show how you plan to make money and when you expect to become profitable. Include projected income statements, balance sheets, and cash flow statements. Be sure to explain your assumptions and include a sensitivity analysis to show how your projections could change under different scenarios.

6. Get Feedback

Before submitting your business plan, get feedback from others. Ask friends, family, or colleagues to review your plan and provide feedback. Consider working with a business coach or mentor who can provide guidance and support.

By following these tips, you can write a compelling business plan that will help you secure funding and grow your business. Remember to tailor your plan to your audience, keep it concise, focus on your unique value proposition, be realistic, include financial projections, and get feedback.

Key Components of a Business Plan and a Pitch Deck

A business plan and pitch deck have different components that are essential to the success of your company. Here are the key components of each:

Business Plan

• Executive Summary: This section provides an overview of your entire business plan. It should be concise and highlight key points about your company, such as the problem you're solving, your target market, and your competitive advantage.
• Business Description: This section describes your company in more detail, including your mission, vision, and values. It also includes information about your team, your product or service, your target market, and your business model.
• Market Analysis: This section analyzes your industry and your competitors. It includes information about your target market, your competition, your marketing strategy, and your sales strategy.
• Operational Plan and Management: This section explains how your company will operate on a day-to-day basis. It includes information about your organizational structure, your management team, and your operational processes.
• Service or Line of Goods: This section describes your product or service in detail. It includes information about the features and benefits of your product or service, as well as any intellectual property you've developed.
• Sales and Marketing: This section explains how you plan to sell your product or service. It includes information about your sales strategy, your marketing strategy, and your pricing strategy.
• Money Request: This section explains how much money you're raising and how you plan to use it. It includes information about your funding needs, your use of funds, and your financial projections.
• Financial Estimates: This section includes your financial statements, such as your income statement, balance sheet, and cash flow statement. It also includes any other financial information that investors may need to make a decision.

• Introduction: This slide includes your company name, logo, and tagline. It's the first thing investors will see, so it should be attention-grabbing.
• Problem: This slide explains the problem your company is solving. It should be concise and clearly explain why your product or service is needed in the market.
• Target Market: This slide describes your target market. It should include information about your ideal customer, such as their demographics, psychographics, and buying behavior.
• Solution: This slide explains how your product or service solves the problem you identified earlier. It should be concise and clearly explain the benefits of your product or service.
• Traction: This slide describes any traction your company has gained so far. It should include information about your customer acquisition, revenue, and growth.
• Marketing and Sales Strategy: This slide explains how you plan to market and sell your product or service. It should include information about your marketing channels, your sales process, and your pricing strategy.
• Competition: This slide describes your competition. It should include information about your competitors' strengths and weaknesses, as well as how your product or service is different.
• Funding Request: This slide explains how much money you're raising and how you plan to use it. It should be concise and clearly explain why you need the money.
• Financial Strength: This slide includes your financial projections. It should include your revenue, expenses, and profit margins.
• Team: This slide describes your team. It should include information about your management team, your advisors, and any other key team members.

Keep in mind that these are just the basic components of a business plan and pitch deck. Depending on your industry and your company's unique needs, you may need to include additional information.

Both a pitch deck and a business plan are essential tools for entrepreneurs seeking funding for their ventures. While a business plan provides a comprehensive overview of a company's operations and financial projections, a pitch deck is a more concise and visually appealing document that seeks to excite potential investors about a company's potential. Understanding the differences and appropriate use cases for each document can greatly increase an entrepreneur's chances of securing funding and growing their business. By following the tips outlined in this article, entrepreneurs can create compelling pitch decks and business plans that effectively communicate their vision and attract potential investors.

A business plan is a lengthy, text-based document that analyzes a business opportunity and/or an existing business, while a pitch deck is a concise document that uses visuals to excite investors about a company and set up a meeting for an investment discussion.

You should use a business plan when obtaining debt financing from conventional banks, managing a bigger board of seniors in the company, and fundraising over $500k.

You should use a pitch deck when starting a conversation with an investor, pitching in a competition, and seeking equity funding.

The pros of a business plan include being comprehensive and strategic and useful for fundraising, while the cons include being time-consuming, quickly outdated, and potentially not read by investors.

What are the pros and cons of a pitch deck?

Concise Recap: Key Insights

A business plan analyzes a business opportunity and/or an existing business, while a pitch deck aims to excite investors about a company and set up a meeting for an investment discussion.

A business plan is a lengthy, text-based document, while a pitch deck is a concise document that uses visuals to convey critical information as quickly as possible.

A business plan is helpful for obtaining debt financing from conventional banks, managing a bigger board of seniors in the company, and fundraising over $500k, while a pitch deck is useful for starting a conversation with an investor, pitching in a competition, and seeking equity funding.

A business plan is comprehensive and strategic, while a pitch deck is concise and engaging.

Both business plans and pitch decks have their advantages and disadvantages, so it's essential to understand the pros and cons of each and use them appropriately to communicate your ideas effectively.

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Pitch Deck vs Business Plan: Key Differences

Pitch decks and business plans are essential tools in venture capital. A pitch deck offers a concise, visual overview to spark investor interest, while a business plan provides a detailed roadmap of strategies, market analysis, and financial projections for securing long-term funding.

In venture capital, effectively communicating a startup’s vision is critical, and two key tools for this are the pitch deck and business plan. A pitch deck is a concise visual presentation used to attract investors, while a business plan provides a detailed roadmap of strategies and financials. This article explores their differences and usage in venture capital.

Key Takeaways

• A pitch deck typically focuses on high-level information.
• Business plans require detailed assessments.
• Startups use pitch decks for investor meetings and competitions to generate interest.
• Business plans are crucial for securing funding from banks or guiding internal strategies.
• Clear communication through these tools can significantly impact fundraising success.
• Venture capital firms often engage with pitch decks first, influencing their investment decisions.

Introduction to Business Plans and Pitch Decks

In venture capital, understanding the distinctions between a business plan and a pitch deck is crucial. Both serve complementary roles in a startup's growth journey. A business plan offers a comprehensive roadmap, while a pitch deck highlights key information visually. Both are essential tools for securing venture capital funding .

Understanding Their Importance for Startups

A business plan and a pitch deck are crucial in defining the clarity and direction of a startup. Business plans, ranging from 10 to 100 pages, provide in-depth objectives, market analysis, and financial projections. Pitch decks, typically 10 to 20 slides, summarize the business model and market opportunity to capture investor interest. Together, they help startups navigate fundraising and strategic planning effectively.

Overview of Their Purposes

Pitch decks are crafted to capture the attention of busy venture capital investors through concise, high-impact visuals. On average, venture capitalists spend just 3 minutes and 44 seconds reviewing a pitch deck . These decks highlight key points such as market opportunity, business model, and team expertise. 

In contrast, business plans provide an in-depth analysis of financials, market dynamics, and strategies, offering a comprehensive assessment of the startup’s growth potential.

The Comprehensive Nature of a Business Plan

Companies with solid business plans typically secure 133.33% more investment capital . A business plan provides the full strategy for a startup, offering comprehensive insights into the business, from market analysis to financial forecasts. It outlines long-term goals, risk analysis, and detailed financial projections, essential for securing large investments or loans. 

Key Components of a Business Plan

• Executive Summary : A concise overview of the business’s mission and goals.
• Market Analysis : Insights into industry trends and competition.
• Financial Projections : Cash flow statements, revenue forecasts, and funding requirements.
• Risk Analysis : Identifies potential challenges and mitigation strategies.

Why Business Plans Are Essential for Founders

Business plans are essential for securing venture capital , as they demonstrate the startup’s growth potential and long-term strategy. They also help align the management team and attract talent by providing a clear, detailed vision of the company’s future.

The Visual Appeal of a Pitch Deck

A pitch deck serves as the startup’s first impression to venture capitalists. It uses visual elements to present the key aspects of the business in a concise and engaging format. With its 10-20 slides, it captures the essence of the startup’s potential, aiming to spark investor interest.

Essential Elements of an Effective Pitch Deck

• Problem Statement : Defines the issue the startup solves.
• Proposed Solution : Presents the innovative solution.
• Market Opportunity : Highlights target markets and growth potential.
• Business Model : Outlines revenue generation strategies.
• Financials : Includes high-level projections and metrics.
• Team Information : Showcases the team’s experience and expertise.

Situations Where a Pitch Deck Shines

Pitch decks are particularly effective in early-stage investor meetings, pitch competitions, and partnership discussions, offering a clear, concise overview of the business opportunity to venture capital firms .

Understanding the differences between a pitch deck and a business plan is critical for navigating the venture capital landscape. While a startup’s  business plan offers a detailed analysis over 20 to 40 pages, a pitch deck summarizes key aspects in 10 to 20 slides, offering a quick yet powerful introduction to investors.

Length and Detail

Business plans provide comprehensive insights with detailed financials and strategic forecasts, while pitch decks focus on brevity and visual appeal to engage venture capitalists quickly.

Target Audience and Usage Scenarios

Business plans target banks and investors seeking in-depth financials, while pitch decks engage venture capital firms in early-stage discussions, focusing on market potential and scalability.

Before you go…

Understanding the distinct roles of a pitch deck and a business plan is crucial for navigating the venture capital landscape. Both tools serve complementary purposes—pitch decks grab investors' attention quickly, while business plans offer the depth needed for securing long-term funding. To further enhance your knowledge and increase your chances of success, explore more articles on fundraising strategies and investor engagement.

Related Articles:

• Internal Rate of Return & Venture Capital Funds: What Is a Good IRR For Venture Capital? (VC)
• What Is a General Partner in Venture Capital (VC)?
• Exit Strategies for Venture Capital Investors: What Is An Exit In Venture Capital?
• What is a Simple Agreement For Future Equity (SAFE)?
• Venture Capital (VC) Valuation Methods For Startups
• Pre-Money vs. Post-Money Valuation
• Startup Guide: What Is a Pari Passu Liquidation Preference?
• Startup Equity Guide: What Are The Differences Between Regular And Advisory Shares?

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What is the difference between a pitch deck and a business plan?

A pitch deck is a brief presentation that provides a snapshot of your business, typically aimed at potential investors, while a business plan is a comprehensive document that outlines all aspects of your business, including market analysis, operational plan, and financial projections.

When should I create a pitch deck?

You should create a pitch deck when you are seeking to attract potential investors or partners, especially during fundraising rounds or networking events. A compelling pitch deck can help you effectively communicate your business idea.

What are the key components of a business plan?

The key components of a business plan include an executive summary, market analysis, organizational structure, product or service line, marketing and sales strategies, funding request, and financial projections. This comprehensive business plan provides a detailed understanding of your business.

Do I need a pitch deck to secure funding?

While a traditional business plan may suffice for some investors, a well-designed pitch deck is often more effective in capturing attention and securing funding. A winning pitch deck can succinctly convey your business model and vision.

How can I write a business plan?

To write a business plan, start with an executive summary that outlines your business idea, then conduct thorough market research, define your business structure, and detail your financial projections. You may also want to include a business model canvas to clarify your business strategy.

What is the purpose of a pitch deck?

The purpose of a pitch deck is to provide a visual and engaging overview of your business to potential investors. It aims to pique their interest and encourage them to learn more about your startup business and investment opportunities.

Can I use the same content for both a pitch deck and a business plan?

While there may be some overlap in content, a pitch deck and a business plan serve different purposes. The pitch deck should focus on high-level information and engage the audience, whereas the business plan should provide a detailed exploration of your business.

What should I include in my pitch deck?

Your pitch deck should include a clear introduction, problem statement, solution overview, market opportunity, business model, competition analysis, marketing strategy, team introduction, and financial projections. A professional pitch deck should effectively communicate your vision and strategy.

How long should my pitch deck be?

A typical pitch deck should contain between 10 to 15 slides, allowing you to cover essential aspects of your business without overwhelming your audience. The goal is to provide a concise yet compelling overview of your business idea.

What is the structure of a business plan?

The structure of a business plan generally includes an executive summary, company description, market analysis, organization and management, service or product line, marketing and sales strategies, funding request, and detailed financial projections. This structure helps potential investors understand your business plan vs other funding options.

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