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
- FAQs
What is a pitch deck?
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!
What is a business plan?
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.
Key differences between a pitch deck and a business plan
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:
| Factors | Pitch Deck | Business Plan |
| Format | Concise, visually engaging slideshow | Comprehensive written document |
| Purpose | Capture investor interest, secure meetings | Detail long-term business strategy |
| Length | 10-20 slides | 20-50 pages |
| Detail | High-level overview | In-depth analysis |
| Primary Uses | Investor meetings, business overview | Securing loans, guiding internal strategy |
| Competitive Analysis | Brief overview of key competitors | Detailed analysis of competitive landscape |
| Audience | Investors, partners | Investors, lenders, internal team, stakeholders |
As you can see, a pitch deck provides a concise overview of your business, while a business plan provides a comprehensive analysis.
What is included in each one
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.
| Pitch Deck | Business Plan |
| Title slide | Executive summary |
| Problem statement | Company introduction |
| Solution | Market analysis |
| Market opportunity | Organization and management |
| Business model | Product/service line |
| Traction | Marketing and sales strategy |
| Competition | Funding requests |
| Go-to-market strategy | Financial projections |
| Financials | Appendix |
| Team information | |
| Use of funds | |
| Closing slide |
Use cases for business plans and pitch decks
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.
- 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.
When to use a pitch deck vs a business plan
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 deck
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.
Choose the right communication tool for 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.
