How Market Research Applies to the Pitch Deck

 

As a very basic explanation, a Pitch Deck is an abbreviated business plan. There is a lot more to it but, that is a great way to understand it at a fundamental level. One thing that is incredibly important to both documents is Market Research.

If you’re familiar with business plans, then you already understand the importance of market research. But, it applies to pitch decks in much the same way. Let’s explore. 

Industry & Market Overview – Within the pitch deck, you are likely going to briefly overview the industry and market of your business. The only way to do this adequately is through market research. This is usually an expected part of a Business Plan Writer or pitch deck and will be an early section. So, market research begins to play a role early on.

Product/Service Demand – Unless your product already exists, you have to prove there is a need for it. Even if the product does already exist, you’ll have to prove people will be interest in whatever you are going to do to make the product different. If your business is not yet up and running, you’re going to have demonstrate that there is a real demand for your product. No market demand is one of the top reasons that startups fail so, this is imperative.

Target Market – Within the pitch deck, you will discuss who your target market(s) is. The only way to discuss them in depth and fully understand them, is to do your market research. This will then inform things like how you intend to market to them. All of which is expected to be addressed in the Pitch Deck.

Financial Projections – This is perhaps the place where market research will have the biggest impact. One part of having reasonable projections, especially if your company is brand new, is understanding the total market potential. Then, you must understand how much of that potential is already being captured by your competition. Not just that but, how strong those competitors are.

There are other factors, of course. But, those factors are not nearly as impactful or prevalent. You may not even cover or mention your assumptions in the actual presentation, but when a potential investor does their due diligence, it will certainly come up.

Bringing it All Together

When preparing your pitch deck - or business plan - it should be evident that market research will play a big role. Whether directly or indirectly, it is obvious it will be included throughout. It’s not just a matter of completing it. It needs to be completed well. Yet, market research is one of the parts of the business plan that people have the most difficulty with.

In order to have the strongest pitch deck, and ultimately the most successful business, don’t skimp on the market research. If you are not familiar with the process or how to approach it, consider hiring professionals. It can be difficult to invest in solid market research at the beginning of your business planning process. Even if you can’t do it right from the beginning, you should make it a priority as soon as you have some cash flow. Ideally before you approach investors, if that is possible.

Regardless when you do your Market Research, or what you do to ensure it is done in a meaningful or informative way, make sure you do it to have the best pitch deck possible.