How can you use your pitch deck to showcase your financial projections?

In your pitch deck, talking about future money stuff is like telling a story about where your business is headed. Start by showing how much money you expect to make and spend, so it's clear where everything goes. Use simple charts or pictures to highlight important money details, like how much your sales might grow. Break down the big numbers into smaller parts, focusing on the most important stuff. It's like painting a picture of what your business money future could look like. Be honest and explain the reasons behind your money predictions. This helps people trust what you're saying. By making a clear and honest story with your money plans, you turn numbers into an interesting tale that supports your business dreams.

Before diving into spreadsheets, understand your audience! Angel investors crave traction and market whispers, while VCs want revenue roars and exit-strategy symphonies. Know who you're talking to: Early-stage angels: Show 'em your market's size, user traction, and those juicy unit economics! Growth-hungry VCs: Paint a picture of revenue rocketships and explosive growth charts. Exit strategy? They're all ears. Tailor your financial section like a chameleon! Match the stage, the industry, and the investor's personality. This isn't just crunching numbers; it's building a story that resonates and wins hearts (and funding). Remember, It's about showing the right audience how your vision will set their portfolio on fire.

Start with a concise introduction that sets the stage for the financial discussion. Include key information about your business, mission, and market opportunity. Showcase key financial metrics in a visually appealing manner. Include highlights such as revenue growth, gross margins, and net profit margins.

It is well known for investors and founders that financial projections in early-stage startups are nothing but assumptions. Sometimes they're realistic, sometimes they're too optimistic. You can only do one thing: make sure you are able to explain the numbers and what the milestones are.

Creating financial projections requires more than just numbers, it also requires building a strong foundation based on reasonable assumptions. Having a well-planned strategy that supports your unique advantages and unique competitive advantage is essential. This develops credibility among others and improves your business plan. A thorough and honest projection model is ensured by taking into account the cost of gaining customers, their continuation rate, price, and market share.

Assumptions Slide: Transparently lay out the key assumptions behind your financial projections. This may include assumptions related to market growth, customer acquisition costs, and pricing.

Include a sensitivity analysis to demonstrate how changes in key variables can impact your financial projections. This adds credibility and shows that you've considered various scenarios.

Keep it simple on the pitch deck with a summary of the prior year, current year, and future P&L, and know your numbers well enough to speak on the details of each category. Have appendix items that goes over the Use of Funds, the Sales Segments and Key Performance Metrics. Be prepared to point out Break Even Points, to discuss when you will need more capital in a later round if that is part of the plan, and what milestones you will reach with the current round capital.

If you're seeking investment, briefly touch on your exit strategy. Discuss potential exit scenarios and returns for investors.

Break down your projected expenses. Categorize them into operational, marketing, and other relevant expenses. Use visuals like pie charts to illustrate the distribution of expenses.