How to Formulate Your Pitch Deck with Sales Psychology in Mind

 

According to notable Harvard professor Gerald Zaltman, 95% of purchasing decisions are subconscious. This applies to whether someone is purchasing a toothbrush or investing in a business. Investors are constantly seeing new investment opportunities. The most common way to introduce your business to a potential investor is through a pitch deck. As with any other form of a sales pitch, approaching a Pitch Deck with sales psychology in mind can go a long way to ensuring your business stands out from the rest.

 

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The Importance of Continual Market Research to Overall Business Success

Market research is typically conducted when starting a business, expanding a business, or launching a new product or service. Too often, it is believed that market research only needs to be done at these critical stages but in actuality, it should be an ongoing process. The most effective and successful businesses know that Market Research should happen routinely in order to keep a finger on the pulse of the overall market/industry, be able to adapt to consumer trends, and stay a step ahead of competitors.

 

 

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Alleviating the Confidential Information Memorandum Bottleneck in Your Firm

 

When looking to sell a business, the Confidential Information Memorandum (CIM), also called the information memorandum or sales memorandum, can be one of the most important documents that will help determine if the business sells.

 

 

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Important Considerations for Successfully Franchising Your Business

Franchising can be a highly advantageous way to quickly grow your business. Unlike expanding on your own, franchising creates a mutually beneficial arrangement where franchisees will bear a great deal of the cost in exchange for an established brand and proven systems. One of the very first things you should do is to sit down and create your Franchise Business Plan.

 

 

 

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Defining the Main Components of a Business Plan and Information Memorandum

 

Although a business plan is different from an Information Memorandum, many of the components are the same, although they may go by different names from document to document. These are some of the most common sections that overlap between the two.

1. Executive Summary – It is always recommended that you write the executive summary last. This is a one- or two-page overview of your entire Business Plan or information memorandum. It will include, at a minimum, a description of the main products or services, why you’re starting/selling the business, and will touch on the topline financials.

2. Investment Opportunity – You may touch on the investment opportunity in the Executive Summary but, in this section of the information memorandum or business plan you will go in depth about why the business is a good fit for an investor or acquirer. It will touch on some of the strongest and most compelling aspects such as existing big-name clients, percent of market capture, committed future sales, or strong management team.

3. Company Description – This is the background of the company. It will cover important information such as year of establishment, business structure, recent news and sometimes will include top line financials but, with slightly more detail than the Executive Summary.

4. Product/Service Overview – This section of the Information Memorandum or business plan is where you will go into depth about the products/services offered. You will likely discuss what is top selling, what makes up the majority of sales, as well as the margin that is captured from each various product or service category. If you have a limited number of products, you will likely discuss each one individually. If you have several, you will discuss them in segments or groups.

5. Market Overview – In this section, often thought of as one of the most important foundational elements of the business plan or information memorandum, you will discuss the business’s position in the larger business landscape. It includes a statement about the entire industry, trends, competitors, as well as who the target markets are.

6. Management & Structure – Potential investors often want to know who is responsible for the day to day decisions in the business. Typically, this section will include an organizational chart as well as a description about key management positions and a biography of the people that fill them.

7. Financials – In the end, it is often all about the numbers. You will likely touch on various financial elements throughout the business plan or information memorandum as it makes sense. This is where they will be covered in detail. At a minimum, this will include projections of the key financial statements. Existing businesses will also present their recent and current actuals.

How these sections are ordered will vary between the business plan and information memorandum. It may even vary business plan to business plan or information memorandum to information memorandum. Beyond the Executive Summary, which is always first, and the Financials, which will almost always be last or second to last, the order of the rest of the sections may change to make sense for the specific plan. Some of these sections will also be broken down and covered over multiple sections depending on the business.

If you’re unsure how to construct your Business Plan or information memorandum to be the best representation for your business, consider hiring professional business plan or information memorandum writers like those at Joorney.

 

4 Helpful Tips When Using Financial Modeling to Create Financial Projections for your Business Plan

Financial modeling is almost always used to create the financial projections of your business plan. Financial models are typically created in Excel or Google Sheets. These programs give them the flexibility to incorporate necessary formulas and continuously augment the inputs. Financial Modeling can feel overwhelming if you are not a finance person or familiar with spreadsheet software. These tips can help you create models that are easy to establish, use, and will be easy to explain to others.

1. Detailed Labels

When you begin creating financial models, especially if you are the only using them, there is a tendency not to waste time on labels. After all, you understand it, right? However, your financial modeling will quickly expand and it’s easy to lose track of what various cells, columns, and formulas were meant for or calculating. Label everything in as much detail as necessary to eliminate issues down the road.

Later on, once the Financial Projections of your Business Plan are presented, it may raise questions about your financial modeling techniques. It will be much easier to address if the financial models are clearly labeled. This will create an easier foundation for explanation and understanding.

2. Separate Inputs

Your financial modeling should not only be clearly labeled, it should also be well-organized. One of the primary ways to do that is by having your inputs, formulas and outputs separate and clearly defined. If you have a lot of inputs and the model may be used by others, you might want to consider having a single sheet for all inputs. If you want to keep your inputs in the same sheet in which they apply, you may want to color code them. At a minimum, you should label them as inputs with text.

3. Structure in a Natural Way

When you are working on financial modeling, you want to make sure they are readable. In addition to the tips above, this includes organizing the way the information is laid out in a predictable manner that is readable and relatable. This means laying out your information from top to bottom or left to right. Start with the input, then calculations, then output. Structuring your sheet(s) this way makes it more intuitive not only for yourself but, anyone else that may view or use them.

4. Link Sheets

As your financial modeling efforts to create your Financial Projections in your business plan evolve, you may end up with quite complicated spreadsheets. Don’t be afraid to break down the information on various sheets within the same Excel or Google Sheets document. Using various sheets makes it easier to organize your information. Then, you can simply link pertinent information from one sheet to another so the information throughout your entire document flows. If you are unsure how to do this, review the help feature in Excel or Sheets, search Google or YouTube or consult an Excel/Google Sheets expert.

Financial Modeling can seem like a monumental task at times. The tips above will help ensure your financial modeling doesn’t become overwhelming while you are actively creating and utilizing it. The models will also make it easier to demonstrate and explain to outside parties how you arrived at the financial projections in your business plan.

Understanding Market Research Factors in the Bank Business Plan

 

As with any business plan, a bank business plan will have an extensive section on market research. Market Research is always important to understanding your customers and where your business and products or services fit among competition. It should always be a part of a business plan but, will be especially scrutinized in an investor or a bank business plan. So, what questions does market research answer and what does a full market analysis entail?

Questions Market Research Answers

Once you have completed and analyzed your market research for your Bank Business Plan, you should be able to answer the following questions, among others.

• Is there a genuine demand for your product or services?

• How many people would be interested in what you are offering?

• What are the economic indicators such as revenue range, employment rates, etc.?

• What location will you focus on; where do your potential clients live and how do you reach them?

• How much competition is there; are others already offering what I offer?

• How does the product/service differ from that of others?

• What do customers of competitors pay for similar products?

Market Research Sections

Once your research has answered the questions above, you will then organize this information into a market analysis section in your Business Plan. Each section will address specific aspects of the industry and market.

Industry Overview – A brief overview of the overall industry in which your business operates as well as expected short- and long-term trends. 

Market Research Testing – A description of what Market Research methods were used to gather the industry and market information presented for your bank business plan. 

Target Market(s) – This is where you identify your specific customers with some specificity. This typically includes general demographics like location, age, gender, interests and the like. 

Market Need – This section addresses what need the business is filling as well as how much of a need there is. 

Market Trends – Addressing what is trending in the market right now and how is this expected to change as time goes on. It should also include how the business intends to address these trends. 

Competitive Analysis – A description of the main competitors and how your company and products fit in the overall landscape. 

Barriers to Entry – This isn’t always its own section in a bank business plan depending on what barriers exist. You may simply, in an earlier section, write that there are no or limited barriers to entry unless there are some that are worth noting and require specific attention. 

Regulations – This also may not have its own section in your bank business plan. It will depend on whether or not it’s material to your business and market.

The best business idea in the world cannot be successful if you don’t explore and address these important questions that market research answers as well as the sections in the Bank Business Plan it informs. That is why it is important to not only conduct market research but, to understand its importance and its role in the overall business plan. It is one of the many tools that will help create a solid bank business plan and pave the way for business success.

Do’s and Don’ts of the Pitch Deck According to Professional Business Plan Writers

 

Professional Business Plan Writers have seen it all when it comes to business plans and pitch decks. Pitch decks can be especially difficult because they need to be such a brief representation of your overall business plan. When it comes to pitch decks, there are a lot of things you should ensure you do and many things you shouldn’t.

DO Keep it Short

Your Pitch Deck should be between 10 and 20 slides. As time has gone on, the expectation for the length of a pitch has gotten shorter and shorter. Investors and other audiences are busy and want to understand the overall concept of the business as quickly as possible. You need to capture the basics and highlights and let your audience ask for more information from there.

DON’T Include Unnecessary Detail

With a pitch deck, professional Business Plans Writers will remind you that you are giving a top line overview of your business. It’s a pitch, not a full business plan. The entire purpose is to elicit enough interest that your audience will want to know more about your business. Too much detail in this format will have the opposite impact.

DO Keep Your Audience in Mind

If you know anything about your audience, you should use that to your advantage if possible. If you are using it to ask friends and family for a loan, professional Business Plan writers know that it should be written in a different tone than if you are presenting to a professional investor. If you know your investor and know that only care about the bottom line, then focus on numbers over the product description. If you are pitching to a relative, they will likely be more moved by your passion and that you’ve thoroughly planned. Whatever information you have about your audience, use it!

DON’T Try to Oversell It

No business plan is perfect and there is never a 100% guarantee that your business will work or generate as much revenue in the time frame you are expecting. One of the best things that professional business plan writers are good at it as getting people excited about your business plan without overselling it. Follow this logic in your business plan and pitch deck and make sure any numbers you put forward are well supported and reasonable, not overinflated.

DO Let Your Brand Shine

There are thousands of Pitch Deck templates out there. There is no need to overwhelm yourself with reinventing the wheel. However, one thing professional business plan writers will always do, is incorporate the business’s branding. This includes things like the logos, colors, and fonts used to represent the business. This keeps it personal and cohesive.

DON’T Overuse Visuals

Visuals are an important part of the pitch deck when used correctly. You should definitely use your company branding, add charts and graphs when appropriate, and show images of your products. However, too many visuals will overwhelm your presentation. A good rule to follow is “when in doubt, leave it out”. If you’re not certain a visual element needs to be included, you should probably leave it out.

A pitch deck and a business plan should be as unique as your business. However, there are many things that can make a pitch deck less effective than desired. The above dos and don’ts are an excellent starting point that can ensure you reach your business goals. If you’re able, you may also want to consider hiring Professional Business Plan Writers to tackle this very important task.

5 Considerations for Financial Projections in a Business Plan or Information Memorandum

The financial projections in your business plan or confidential Information Memorandum (CIM) are often one of the most important components of your document. Your entire plan or CIM is important, of course, but when it comes to business it usually all comes down to numbers in the end. There are a number of things you can do to ensure that this vital piece of your document is the best representation of your business as possible.

1. Do Not Overinflate Your Numbers

It is natural to want to paint the best picture of the business possible via the Financial Projections Business Plan or information memorandum. There is a tendency to want to show the highest revenue and the lowest expenses possible. You should resist this urge at all costs. No matter your audience or the purpose of your plan or CIM you should include reasonable numbers. External professionals will know when you are trying to oversell.

2. Include Background and Backup

The financial projections in your Business Plan or information memorandum will likely raise more questions than any other component of the document. You should stive to answer as many questions as possible – before they are even asked – by including backup for your financials in the appendices. This will include details on the assumptions included and any financial models you may have used.

3. Anticipate Obvious Questions

Beyond just including backup, try to put yourself in the shoes of your audience and anticipate what information they need so the financial projections in the business plan or information memorandum are easy to understand. Do all aspects of any charts and graphs have labels? Are your financial statements in a format that is easy to read within the context of your document? These are all the types of questions you should consider before sharing your business plan or information memorandum with outside parties.

4. Footnotes are Your Friend

One way to proactively answer questions without your audience needing to look at the detailed backup in an appendix is to include some detail in footnotes. Just be careful not to use too many as they can become a distraction if they take up too much of the page.

5. Include Visual Elements

There will be specific points of the Financial Projections in your business plan or information memorandum that you are going to want your audience to pay special attention to. Sometimes the best way to highlight certain things is in a chart or a graph. You may also be able to effectively do this through the use of formatting and headers. Including visual elements not only can make your projections easier to understand but, it gives you some control over what information stands out.

Crafting the financial projections for a business plan or information memorandum can be overwhelming, especially if you do not have experience with such things. Don’t be afraid to reach out to professionals for help if you are able. Even if you choose to write your business plan or CIM on your own, often times business plan writers will do specific aspects like the Market Research or financial projections. Given how important the financial projections are, it is worth considering this if financials are not your forte.