A pitch deck is a presentation that entrepreneurs use to sell their business idea to potential investors. The purpose of a pitch deck is to give an overview of the business, its products or services, its market opportunity, and its team in order to persuade the audience to invest in the company.

What is a business plan?

A business plan is a document that outlines the goals, strategies, and financial projections of a business. It is used to persuade potential investors to invest in the company.

Pitch deck vs Business plan

Pitch decks and business plans are different in their purpose, content, and format.

Whether you need a pitch deck vs a business plan will depend a lot on the type of business you are running or planning to set up.

Both these documents help entrepreneurs navigate their businesses over the next few years. Both these documents help investors in deciding whether to fund the business or not. However, where business plans are essential for traditional businesses that have a more concrete pathway to success, startups don’t require business plans. A pitch deck is more appropriate for a startup as a lot will change in the course of business.

In this post, we will discuss the differences between pitch deck and business plan and help you determine which one is necessary for your business.

1. Purpose

The purpose of a pitch deck is to raise money from venture capitalists and angel investors. The purpose of a business plan is for traditional businesses or late-stage companies to raise money from investors and banks and also to forge partnerships with other organizations.

A pitch deck is a summary to help investors get a decent understanding of the business and helps create opportunities for entrepreneurs to get meetings with venture capital firms and angel investors. Business plans on the other hand serve as full-proof research to help investors understand whether they should invest.

2. Usage

As mentioned previously, pitch decks are more apt for tech startup companies whereas business plans are prominently used by established businesses, small or big.

Suppose I am an angel investor or a venture capitalist investing at a seed stage (up to $1 million). In that case, I am more interested in the team and the idea and how the business could disrupt a whole industry or create a new one. When the company has grown from an idea to a company with employees and millions of dollars in revenue, I am more interested in seeing how they will reach stability and become the number 1 or 2 player in the market, and I am interested in detailed strategies. That is when I want to look at the business plan and understand how they will execute their plans.

3. Length

Pitch decks can range between 10-50 pages and depend on the stage of the startup. For example, investors who invest in very early-stage startups require not more than a 10-page pitch deck. However, as the startup grows and raises more money, investors who come in at a later stage would want more information and might require a detailed pitch deck that can range up to 70 pages.

Business plans on the other hand are very detailed as cover every aspect of the business and can easily be 100 pages long. A business plan can even contain forecasts for the next 5 years.

A typical investor will spend 2-3 minutes going through a pitch deck but needs to spend more time going through a business plan as there are more details.

4. Audience Focus

A pitch deck focuses on the team, product, market, and traction metrics. These are 4 primary features investors look at to decide whether to invest or not. And these features can easily fit into a 10-page deck.

When the relevant audience looks at a business plan, they want to know if the business they are getting into is/can be profitable and also runs stable operations. In other words, since business plans look at a much longer-term, it includes a lot of details.

5. Presentation

Pitch decks are more visual compared to business plans and are presented vocally to an audience or a set of investors. Business plans are presented verbally as they are read by the relevant audience. Since business plans are longer, they are not presented to an audience.

6. Mode

Pitch decks are usually created with software like Microsoft PowerPoint or Google slides. There is also other software like Prezi and Slidebean which specifically help in preparing pitch decks.

Business plans are usually prepared in Word format as they are heavily text-based.

These are the key differences between startup pitch decks vs business plans.

7. Content

A pitch deck typically covers key aspects of your business, such as the problem you’re solving, your solution, target market, business model, team, financials, and competitive advantage. It’s a concise overview designed to capture the essence of your idea and pique the interest of potential investors or partners.

On the other hand, a business plan is a comprehensive document that delves into every aspect of your business. It includes an executive summary, company description, market analysis, operations plan, management team details, financial projections, and risk analysis. The business plan serves as a roadmap for starting and operating your company.

8. Level of Detail

A pitch deck is a high-level overview that concisely presents key points and visuals. It focuses on the most critical aspects of your business, leaving out granular details.

In contrast, a business plan is an in-depth and comprehensive document that covers all aspects of your business in great detail. It provides a thorough analysis of your industry, target market, competitive landscape, and operational strategies.

9. Time Frame

A pitch deck is often focused on the present and near future, highlighting the current opportunity and potential for growth. It’s designed to capture the attention of investors or partners and convince them to support your business in its early stages.

In contrast, a business plan typically covers a longer time frame, usually spanning three to five years. It outlines the long-term vision, goals, and strategies for your business, providing a roadmap for sustained growth and success.

10. Tone

The tone of a pitch deck is persuasive and compelling. It emphasizes the unique opportunity and potential of your business idea, aiming to excite and convince the audience to invest or partner with you.

On the other hand, a business plan adopts a more formal and objective tone. It presents the facts, figures, and analyses in a straightforward manner, focusing on the feasibility and practicality of your business plans.

11. Confidentiality

Pitch decks are typically shared externally with potential investors, partners, or stakeholders. They are designed to generate interest and secure funding or resources.

Business plans, however, are often kept confidential and shared only internally or with select stakeholders, such as investors or lenders who require a comprehensive understanding of your business plans.

12. Frequency of Updates

Pitch decks are updated as needed for different pitches or rounds of funding. As your business evolves and new information becomes available, you may need to revise your pitch deck to reflect the latest developments and tailor it to specific audiences.

In contrast, business plans are living documents that should be updated regularly, typically on an annual basis or whenever significant changes occur within your business or industry. As your company grows and plans shift, the business plan needs to be revised to reflect the current state and future strategies.

Here’s a table summarizing the differences between the two.

Aspect	Pitch Deck	Business Plan
Purpose	To quickly and concisely present a business idea to potential investors or partners. Pitch decks apply mostly to startups.	To serve as a comprehensive guide for starting and operating a business. Business plans apply mostly to traditional businesses.
Usage	Used to pitch investors, partners, or stakeholders for funding or resources.	Used internally by the founders and management team for planning and execution.
Length	Typically 10-20 slides.	Typically 20-50 pages.
Audience Focus	Focused on capturing the interest of external parties and convincing them to invest or partner.	Focused on providing a detailed roadmap for the internal team to follow.
Presentation	Visually appealing with concise bullet points, graphics, and minimal text.	Narrative style with detailed descriptions and comprehensive information.
Mode	Presented in-person or virtually as a slide deck.	Printed or digital document, often bound or shared electronically.
Content	Highlights the problem, solution, target market, business model, team, financials, and competitive advantage.	Includes an executive summary, company description, market analysis, operations plan, management team, financial projections, and risk analysis.
Level of Detail	High-level overview with key points and visuals.	In-depth and comprehensive, covering all aspects of the business.
Time Frame	Focused on the present and near future.	Covers the present and long-term future (3-5 years).
Tone	Persuasive and compelling, emphasizing the opportunity and potential.	Formal and objective, with a focus on feasibility and practicality.
Confidentiality	Typically shared externally with potential investors or partners.	Often kept confidential and shared only internally or with select stakeholders.
Frequency of Updates	Updated as needed for different pitches or rounds of funding.	Updated regularly as the business evolves and plans change.

Pitch deck vs business plan, what comes first?

The pitch deck is a teaser and comes first. If you are running a business and have decided to raise funds from investors, it’s obvious that you probably don’t know most of them. So, a pitch deck is a great way to get your foot on the door and make a good first impression.

With many new entrepreneurs starting up, you can imagine that every investor gets plenty of pitch decks and business proposals to invest in. Probably hundreds, every month. So, if they have to read lengthy business plans, they won’t have time to actually make investments. That’s why it’s essential to capture their attention with a crisp 10-15 page pitch deck that introduces them to the team, the idea, and how the business can make investors rich.

Do you have all the elements of a good pitch deck?

A good pitch deck gives you the opportunity to grab the attention of investors. A good pitch deck contains most of the necessary information required for investors to make a decision on whether they should talk to you. Take the free assessment to find out if you have all the elements that should be included in your pitch deck.

Also, check out our post on how to create a good elevator pitch to get investors interested in what you’re building.

Tips for creating a good pitch deck

Here are a few tips for creating a successful pitch deck:

– Keep it short and sweet: Remember that you only have a few minutes to make your case, so make sure your deck is concise and to the point.

– Focus on the key points: Investors will want to know about your team, your business model, your traction, and your financial projections. Make sure you hit on all of these points in your deck.

– Use visuals: A pitch deck is a great opportunity to show off your company with some visuals. Include slides with graphs and charts to illustrate your key points.

– Practice, practice, practice: Before you ever step in front of investors, make sure you’ve practiced your pitch a few times. This will help you deliver it confidently and ensure that you don’t leave anything out.

Aspect	Pitch Deck	Business Plan	Elevator Pitch
Purpose	To present a concise overview of a business idea to potential investors or partners.	To provide a comprehensive plan for starting and operating a business.	To quickly and effectively communicate the core idea of a business to someone in a short period of time.
Format	A slide presentation, usually 10-20 slides.	A formal written document, typically 20-50 pages long.	A verbal pitch, lasting about 30-60 seconds.
Content	Covers key aspects like the problem, solution, target market, business model, team, financials, and competitive advantage.	Includes an executive summary, company description, market analysis, operations plan, management team, and financial projections.	Highlights the unique value proposition, target market, and competitive advantage of the business idea.
Level of Detail	High-level overview with key points and visuals.	In-depth and comprehensive, covering all aspects of the business.	Brief and focused on the core concept and benefits.
Audience	Potential investors, partners, or stakeholders.	Founders, management team, investors, and lenders.	Anyone who might be interested in the business idea.
Use Case	Pitching for investment, partnerships, or resources.	Planning and guiding the business operations and strategy.	Generating initial interest and setting the stage for further discussion.
Delivery Method	In-person or virtual presentation.	Printed or digital document.	In-person or impromptu conversation.

Pitch Deck vs Business Plan – Which One do You Need?

What is a pitch deck?

What is a business plan?