Business Model

and A Successful
Pitch

Dr. Hummaira Qudsia Yousaf

Program Manager ETTP
What is a Business Model?
What is a Business Model?

A business model template that

allows you to organize your
business plan in a logical way.
It is typically designed and
used by entrepreneurs for
startups.
Why Business Model?
 Fast and Speedy
 Simple and compact
 Universal
 Actionable
 Ingredients of a Business Model
Problem Target Market Competitors Unique Solution

Team Structure Channels

Traction

Startup Capital & Financial Attractiveness:

Problem
It describes the problem you are solving and how and
why that problem is painful. Describe the problem at
a high level first and then quickly transition to a
specific story of a customer to make the problem
personal.

What Question do I need to Answer?

 What is the problem?

 How big is the problem?

 Why does the problem exist?

 How is the problem currently being addresses?

 Target Market
This ingredient demonstrates how well you know your
customers and the market they represent. Describe
where they live, what they like to do, and how much
they are willing to spend. Describe the markets that
how many potential customers are there who are
willing to buy the product.

What Question do I need to Answer?

 Who is your customer (s)?

 For whom are we creating value?

 Who are our most important customers?

 What is the acquisition cost per customer?

 Is your customer willing to pay for your product or service?

Competitors
This ingredient demonstrates how well you know your
competitors and describes how they compete in the
market. It describes what differentiates you from
competitors and what advantage you have over them.

What Question do I need to Answer?

 Who is your competitors (s)?

 Who will steal your customers?

 What is their unique value proposition?

 How are you different from your competitors?

 What market share do they currently have?

 Unique Solution
It is the time to pull out all the stops. Show them your magic, your
one of-a-kind solution to the problem. Make your solution as
realistic and interactive as possible. Use short videos,
illustrations, screenshots, pictures, prototypes, samples, sketches,
or demos rather than tell your solution.

What Question do I need to Answer?

 Does it solve the customer’s problems like magic?

 Is the customer going to crave this product?

 What will the customer’s life be like once the problem is solved?

 How are you going to pull this off?

 Is it awesome?
Channel
Channel demonstrates where the customer can access
the product. It can virtual or physical space.

What Question do I need to Answer?

 What channels are we looking for distribution?

 What would be the distribution intermediaries?

Traction
The traction slide demonstrates that each of your
assumptions about the venture will prove true and
make significant progress. Traction helps to convince
the investor that idea is going to be success no matter
what.

What Question do I need to Answer?

 What evidence do you have that shows your business would be
successful?
 What would be the clear sales processes?

 What are the key measurements of fast business momentum?

Team Structure
Every business, no matter what industry
or size, will have some key success
factors that are used to monitor
performance. The best way to get the
tasks done is to know what jobs will be
done by whom

What Question do I need to Answer?

 How many employees works with the firm?
 Who is responsible for what?
 Key performance indicators
Financial
Attractiveness

Overall financial attractiveness of the

business is primarily based on a new
ventures projected sales and rate of
return (profitability).

Creating and delivering value,

maintaining customer relationships, and
generating revenue all incur costs. What Question do I need to Answer?

Revenue stream represents the cash a
company generates from each customer
segment (costs must be subtracted from
revenues to create earnings).
 What are the most important costs inherent in
our business model?
 How much is the Startup Capital?
 What is Gross Profit & Net Profit ratio?
 What is Break Even Point?
 What is Payback Period?
The Art of Pitch
Why do we need to Pitch ?
Why Pitch is Important?
Speed (quickly sketch the business idea)

Many investors want to see a pitch deck.

 To articulate the important questions about

the business/startup.
e

 Define unique value proposition

 Easy to understand the elements

and the structure of business
model
 The Pitch?
The pitch is designed to convey the most critical
information about the new venture, to a busy
listener who is unfamiliar to it.
The pitch is used to obtain all kinds of important start-
up resources:
• investors
• early employees to join them
• first customers
 A Quiz on First Impressions

10 Seconds to create first impression

93 % of first impressions are based on non-verbal communication (how

you sit/stand, your body posture, eye contact, or handshake)
55 % has to do with physical aspects (clothing, dress)

36 % Increase in positive first impressions occur by using someone’s name

Increase in positive first impressions occur by using an “appealing”
38 % tone of voice (relaxed, friendly, enthusiastic)
Do’s of a Pitch
 Have a big vision – Having a bold mission for where
you want to take your startup is important, especially if
you want to secure venture capital, and most first-time
entrepreneurs think too small.
 Tell a story – Captivate the audience. Include an
interesting personal story to get the attention of the
investors. Your story should convey the value of what you
do, why you do it, and why anyone should care.  may be too early. The more realistic the pitch is,
 know your audience – Do some research on the
investors that you are pitching to and adapt your strategy
accordingly.
 Keep it simple – Keep it short and concrete. Try to
focus on the problem, target market, solution,
competitors, unique value and team.
 Have data to back your claims – Whatever you say
must be supported by numbers or data. Add testimonials,
research data, surveys, statistics, anything you need to
prove the viability of the product & services.
 Show passion and competence – Passion is the
driving force in entrepreneurs. As owner of the idea, you
have to prove that you have the experience, industry
knowledge, business skills, technical know-how, all that
it takes, to turn the idea into a success story.
 Prepare Financial Attractiveness– keep you
financial figures clear and understandable to investors
i.e. Startup Capital Required, NP, GP Ratios, Pay back
period, break even point etc.
 Prepare for a pitch that is memorable remember
first impression matters!
Don’ts of a Pitch
 Don’t waste time – If the problem is clearly visible or
understood, don’t waste time explaining it.
 Don’t ignore competitors – Presenting a clear
differentiation in comparison to your competitors will
help clearly communicate why your service, product or
idea is superior.
 Don’t oversell it – Presenting it like a game changer
the higher the chance for success. Overselling the benefits
of your product may leave an impression of a dreamlike
product.
 Don’t ignore key risks – Identify the key risks your
business will face. If you present a clear strategy how to
handle the identified risks upfront, it leaves an
impression that you are prepared for the challenges
ahead.
 Don’t be afraid if you don’t have all the answers –
An entrepreneurial journey is one long experience. It is
only by living it that you will find some answers. As for
the rest, you can always hire advisors.
Three Types of Pitch

A Elevator`s Pitch
Elevator pitch is a way to share your expertise and
credentials quickly and effectively with people who don't Elevator
know you.
1-1.5 minute Pitch
Rocket
B Rocket Pitch
Rocket Pitch’s unique, fast-paced format generates a lot of Pitch
excitement. Its mostly for large group of audience.
Deck
3-5 minute pitch

C Pitch Deck
A pitch deck is a brief presentation, often created using
PowerPoint, keynote used to provide a quick overview of
your business model. You will usually use your pitch deck
with potential investors and partners.
30 to 35 minutes initial investor pitch
For the budget traveler who wants
to stay in the heart of local culture,
Airbnb is the pioneer of the home- stay
rental marketplace that connects local
hosts to travelers through an easy to use
online exchange platform.
Elevators Pitch
Create the elevator pitch for your own Business Idea
Rocket Pitch
 7 Slides of Highly Successful Pitch
Attractive Caption: your cover must capture the audience and
visuals clearly communicate what the product is.

Value Proposition
Who is your competitors (s)? What solutions they are
Market Opportunity
1 providing in existing market and How are you different from
your competitors? What is your unique solution?

2
Identify
(Problem & Target Audience):
Describe the problem at a high Team Structure & Credibility
level first and then quickly
transition to a specific 3 Introduce your team members with structure of
role & Responsibilities and key performance
sentimental story of a customer
to make the problem personal. 4 indicators of each members.

5
Revenue Model
Here also highlight your target
audience. Explain your financials related to

Market Size
Explain your target market size and its profiles to forecast sales
6 product/ services i.e. Startup capital
required, GP & NP ratios, Break even
point, Payback period and ROI.
and demand.
7
Call to Action
Call to Action is inviting cofounders, partners, investors and
customers to partnership with you.
02/25/2022
PITCH DECK
Nursery Online
Activity
Prepare you Rocket Pitch!
Reflection
Every member will give feedback!
WHAT DO INVESTORS LOOK FOR IN A PITCH?
Rank the order of
importance
(1=most important, 10=least important) of these 10 qualities:
RANK QUALITY
Entrepreneur is passionate
Company has good revenue potential
Entrepreneur is coachable
Company has good business model
Company has reasonable barriers to entry
Entrepreneur is trustworthy
Entrepreneur is enthusiastic
Company has reasonable exit plan
Entrepreneur is experienced
Company has large growth potential
WHAT DO INVESTORS LOOK FOR IN A PITCH?
Rank the order of importance
(1=most important, 10=least important) of these 10 qualities:

RANK QUALITY
9 Entrepreneur is passionate
2 Company has good revenue potential
4 Entrepreneur is coachable
1 Company has good business model
7 Company has reasonable barriers to entry
3 Entrepreneur is trustworthy
8 Entrepreneur is enthusiastic
5 Company has reasonable exit plan
10 Entrepreneur is experienced
6 Company has large growth potential
 Home Task
Prepare your pitch

Watch: ICK, Dragon`s Den and Shark tank

Clips

02/25/2022
 Thanks
02/25/2022