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These serve 2 distinct and different needs:

1) The pitch deck should be no more than 8-9 slides. It should contain only the key information – what, why, how, who, etc.. Do not try to accommodate all details – just the key ones! If you want to see mine for Norton Scientific Inc, comment with an email address.

At the presentation:
a) Spend 10 minutes talking about the project – watch your time!!
b) Spend 4 minutes talking about the management team – the people who will implement the game plan in the BP.
c) Spend 1 minute on the deal.

2) The actual business plan (BP) is a little longer but quite different. My business plan is just 11 pages of 10-point font. It also has a cover, contents page and a 1-page Executive Summary as well as a list of Appendices which includes the 3 year financials. If you want a copy of the template I used, comment with your email.

The BP that is too long will bore the investor – they don’t have the time to read a book. Leave the creative writing and fluff out since VC’s don’t want/need that. Don’t write to create volume without substance or about your passion – offer solid, quantifiable data and sound accurate information, demographics, research, etc. to back up your idea. Using real numbers in your projections will provide a more compact, readable plan. Use Appendices for the dull data of your market.

An investor will not be able to make a decision based solely on the deck – that is JUST to get the investors appetite going and show them you know what you are talking about – that you are a serious player. The business plan to to give them enough info that they now want to talk and get to know you before they put out the money.

If you are ready for money, you need both pieces otherwise you end up with nothing unless family and friends ante up. It is never to early to have a goal or target that includes sales (income) and potential customer names. Why would you proceed without that basic info to decide that you should proceed?

If you don’t have the sales numbers, income and customer names, no investor will take you seriously… You have not done your homework so why should they expend any effort let alone invest.

As I stated on LinkedIn Q&A recently:
1) Great ideas abound.
2) Great ideas with a logical and sound business plan are harder to find.
3) Great ideas with great business plans that will be executed by knowledgeable and capable people dedicated to the task with passion are very tough to find.
4) Great ideas with great business plans executed by great people with access to the right investor with the right funds and mentoring skills – priceless!

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