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What is a Business Model Slide?

The business model slide answers a crucial question for investors: How will your company generate revenue and achieve profitability? This slide lays out the mechanics of your business in simple, clear terms, giving investors confidence that your startup has a viable plan for financial success.

At its core, the business model slide explains:

What you sell: The core products, services, or revenue streams your business offers.
Who you sell to: The target customer segments for your offerings.
How you make money: Your pricing structure, revenue model, and sales strategy.

For early-stage startups, this slide is also an opportunity to demonstrate your understanding of market economics and scalability. It’s not just about showing numbers; it’s about telling a story of growth, sustainability, and innovation. Investors will look for proof that your business model is well-researched, aligned with your market, and capable of capturing significant value over time.

Ultimately, your business model slide should showcase not only how your company functions but why your approach is poised for success.

What Do Investors Look for on the Business Model Slide?

An explanation of your core revenue streams and pricing structure.
Evidence that your business model is scalable and can support long-term growth.
An understanding of your cost structure (e.g., cost of goods sold or customer acquisition costs).
How your pricing compares to competitors and what makes your offering unique.
Insights into your sales or distribution strategy (how you’ll acquire and retain customers).

🤔 What Questions Should a Business Model Slide Answer?

How does your company generate revenue, and what are the main revenue streams?
How much do you make per customer? (AKA your ARPA)
What is your pricing model, and how does it align with market expectations?
What are your key cost drivers, and how will you maintain profitability?
Why is your model the right one?

❌ Common Mistakes to Avoid

Complicating the slide with too many details or revenue streams.
Failing to include specific numbers (e.g., average customer value or pricing range).
Ignoring your cost structure.
Outlandish projections without credible evidence or market validation.
Relying solely on text without using visuals to simplify and illustrate your model.

How to Create a Business Model Slide That Investors Will Love

✅ Business Model Slide Best Practices

Start with a simple and engaging headline that summarizes your business model.
Focus on your core revenue streams – don’t overwhelm with too many details.
Show how your business can grow and capture value over time.
Show your potential for upselling and cross-selling if relevant.
Make it easy for investors to visualize the model.

✍️ Business Model Slide Content

Headline: Summarize your model in one concise, impactful sentence.
Economic Model: Subscription, transaction, licensing, etc.
Cost Insights: Highlight key cost drivers (e.g., manufacturing, software development, customer acquisition).

🎨 Business Model Slide Design

Simple Layout: Don’t get too fancy - keep it clean with distinct sections to enhance readability.
High-Quality Graphics: Include high-quality flowcharts, pricing diagrams, or revenue visualizations.
Readable Fonts: Choose professional typography that aligns with your brand style.
Consistent Branding: Maintain a cohesive color palette and style across your pitch deck (including the graphics).