You’re probably thinking what is the difference between business plans and pitch decks? Over the years, research has demonstrated the confusion amongst smaller businesses in whether they should design a business plan or a pitch first and whether it’s beneficial in the first place. Both plans play a massive role in business success. However, this blog will inform our readers of the differences and the benefits of a business plan and pitch decks.
Before we begin explaining their differences, let’s define what a business plan and a pitch deck are, shall we?
What is a Business Plan?
A business plan is a document that highlights a firm’s aims and objectives. In other words, it displays a company’s goals and future accomplishments. This includes financial projections, business purpose, market research and mission statement. A plan can be layered out as a business plan template, map, list or in paragraphs. This is very similar to B&F’s EIS AND SEIS business plan, FCA business plan and continuity business plan. Business plans to be renewed from time to time to keep updating new organizational goals and analyze the need for funding and market research.
To read more about how to design a business plan, please visit our ‘6 Steps In Writing A Winning Business Plan’ blog on our official website.
Why Is A Business Plan Vital?
The importance of a business to prepare a business plan is extremely significant. One of many reasons is to keep track of aims and objectives. This is incredible equipment and the best strategy for owners and managers to help concentrate on their end goal. These are plans for business growth. Another important reason to create a business plan is to raise funds for the company. Potential investors and leaders may want to view a business plan to determine whether it’s a good idea to invest in a business and help with a business plan in the UK. Additionally, business plans help to identify strengths and weaknesses, competitors, targeted audience and many more!
Click on our ‘Components of A Business Plan’ blog to learn more about the importance of a business plan.
What Is A Pitch Deck?
A pitch deck, also known as a pitch deck presentation and a startup pitch deck is a document that outlines key information about a business. This is very similar to a business plan template. This may consist of financial goals, its product and services and target market. A good, informative pitch deck is as important as a business plan because it gives an incredible impression to investors and lenders. This will need investors eager to engage and work with a company.
To reverse the definition of a pitch deck, it usually includes a couple of presentational slides that describe a story of the company. For example, presentation slides can be set up in a Powerpoint, or use a current tool like Visme to design an illuminative and eye-catching business presentation. A pitch deck demonstrates the plans for business growth as well.
To acquire more details about pitch decks, visit our ‘What Is A Pitch Deck and How Should You Create One‘ blog on our website.
Why Is A Pitch Deck Important In A Business?
A pitch deck is important as it helps potential investors grasp the purpose of an organization better and how their investment will benefit the firm and their financial gain as well.
The purpose of a pitch deck is to be able to convince lenders that an organization has the potential and probability for success and accomplishment. In this way, investors may help with a business plan in the UK for business growth.
Pitch Deck vs Business Plan
According to research, the pitch deck is viewed as a short introduction, therefore it comes first. If a firm decides to gather income from lenders, it is easy to know that the business and investors do not know each other well enough. So, therefore, a pitch deck is an excellent idea to get a foot on the door and make the first move and a great impression. This will help with a business plan in the UK.
Moreover, with lots of new organizations nowadays, investors receive a lot of business proposals and pitch decks from different companies wanting to work with them. Roughly about hundreds per month – at an estimate. Don’t be surprised that they spend their time reading long and detailed business plans more than actually making investments. In this manner, it’s crucial to grab investors’ attention with roughly a 10-page pitch deck that introduces the company, its purpose, services, the team and the financial gains investors win.
On the other hand, other research highlights that it is a bonus to use and prepare a business plan and pitch deck – they are very similar. Besides, what if an investor wants to view a business plan for more in-depth information? Even though pitch decks and business plans are very similar, they have different ways of how it’s set up. Therefore, these documents should be created and be seen differently.
Here are a few differences between a pitch deck and a business plan:
- Length is usually 10 to 20 slides
- A shorter introduction of a business with lots of eye-candy visuals. This is usually designed on Powerpoint.
- A business should send a pitch deck when meeting with an investor or client.
- Length is usually 10 to 100 pages
- A longer introduction of a company – describes the business in detail
- A business should send a business plan when an investor has plans to support the firm and/or request for it.
Arguably, a pitch deck is more important than a business plan in regards to sending an investor an introduction to a business. However, a business plan is as important because it gives a detailed account of a business’ purpose and goals for the near future. If a business doesn’t have a business plan and/or a pitch deck, the likelihood of a business gaining potential investors is very limited – especially as a startup business. This could delay or ruin the chances of meeting up with key advisors and partners that could help support the growth of a company.
Hopefully, this blog has identified and outlined the use, benefits and differences between pitch decks and business plans. B&F Services help businesses internationally with pitch decks and business plans, view their official website for more information.