How to Write the Business Model Slide in a Pitch Deck

The business model slide is the starting point in showing how your company makes sales, creates value for its customers, and makes profits. 

Unlike other pitch deck slides, which jointly draw investors' and the audience's attention to the problem, solution, and market opportunity, the business model slide ties all these aspects together into a plan for monetization. 

This slide is essential for clearly demonstrating to potential investors or stakeholders the sustainability and profitability of your venture. It is, therefore, a cornerstone of a persuasive pitch deck.

What is the business model slide?

A business model slide is a crucial component of a presentation that outlines the strategy a company uses to create, deliver, and capture value. 

It may also be called the revenue slide or operational strategy. Growth or value creation slide, depending on the context and the inherent focalization of the presentation.

When preparing the slide, tools like MS PowerPoint (PPT) and Google Slides can be used. 

The Purpose of the Business Model Slide

The business model slide is the one where you show how your business works in terms of finance. Investors must have faith that your startup can generate a steady stream of revenue and remain profitable. 

The business model is especially significant for a startup since it defines the process of making money and ensuring development. It defines the nature of revenue projections, costs, identity of potential clients, and proposed values to be delivered. Your slide should answer these key questions:

• How does the business make money?
• What are the primary revenue streams?
• Who are the customers, and how does the business serve them?
• Is the model scalable and sustainable over time?

The goal is not only to inform but also to inspire confidence. 

What should be included in an Investor Pitch Business Model Slide?

A good business model slide focuses on the aspects that determine a business and its value-creation mechanisms. 

A well-crafted business model slide typically includes the following elements:

1. Revenue Streams

This section outlines how your business generates income. Revenue streams can include:

• Sales of Products or Services: What customers pay to purchase your offering.
• Subscriptions: Regular payments, such as monthly or annual fees.
• Advertising: Revenue from placing ads on your platform.
• Licensing: Fees for allowing others to use your intellectual property.
• Freemium Models: Offering free essential services with paid premium features.

Actionable Tip: Use a table or diagram to categorize your revenue streams and their contributions to your total income. For example:

Example:

If your business sells software, your revenue streams might include:

• Subscriptions for enterprise users.
• Custom integration services.
• Training and support fees.

2. Value Proposition

Your value proposition explains why customers choose your business over competitors. It describes how your product or service solves customer problems, meets their needs, and provides unique benefits. 

It ties the product’s benefits directly to the revenue streams, showing how value creation leads to revenue generation. For example:

• Unique Features: What makes your product or service different and valuable?
• Efficiency Gains: Does your solution save time, reduce costs, or improve outcomes?
• Customer Problem Solved: How does your offering address pain points?

Actionable Tip: Consider highlighting quantifiable benefits that address the target market’s pain points and vary your offerings.

Example: Consider a subscription-based fitness app. Your value proposition might be, “Our AI-powered marketing tool reduces ad spend by 30% while increasing conversion rates by 40%, making it indispensable for e-commerce brands.”

3. Customer Segments

Investors need to see that you understand your target market. 

Clearly define your customer base and how they interact with your business. 

Identify the primary groups your business serves, including their demographics, preferences, and spending behavior.

Actionable Tip:

Segment your customers into primary groups. For instance:

• B2B Customers: Small-to-medium enterprises seeking software solutions.
• B2C Customers: Individual users looking for an intuitive app.

Examples:

For a SaaS platform targeting freelancers, your customer segment might include solopreneurs managing client projects who value affordability and ease of use.

For an EdTech platform, your customer segments might be:

• University students seeking affordable online courses.
• Institutions looking to integrate e-learning tools.

4. Cost Structure

While revenue is essential, costs are equally important in understanding profitability. Highlight your significant costs, such as:

• Production or development expenses.
• Marketing and customer acquisition costs.
• Fixed costs like rent and utilities.
• Variable costs like raw materials.

Actionable Tip:

Keep the cost structure concise and focus on high-level categories, as this slide is not meant to be a detailed financial breakdown. 

Example: 

• Production/Development: $25,000/month (e.g., manufacturing equipment, software development)
• Marketing & Customer Acquisition: $15,000/month (e.g., ad campaigns, partnerships)
• Fixed Costs: $10,000/month (e.g., office rent, utilities)
• Variable Costs: $20,000/month (e.g., raw materials, shipping costs)

5. Scalability

Show investors how your business model can grow without proportional increases in cost. Highlight recurring revenue, economies of scale, or processes that can be automated. Use this slide to showcase:

• Economies of Scale: Costs decrease as production increases.
• Repeatable Processes: Revenue grows faster than operational costs.
• Recurring Revenue: Subscription-based models that ensure predictable income.

Actionable Tip: Use visuals like a detailed data graph and accurate metrics to  demonstrate how scaling your business will result in disproportionate  cost savings and revenue grown 

Example:

“Our SaaS platform scales efficiently as hosting costs grow minimally while new customer subscriptions significantly increase profitability.”

 “Our warehouse automation allows us to scale operations while reducing fulfillment costs per order.”

How to Structure the Business Model Slide

Investors often have limited time to review pitch decks. A well-designed visual can quickly convey your business model. 

Use diagrams, flowcharts, or tables to design your slide. Below are the popular formats:

1. Icons and Visual Elements

Icons and visuals are graphical symbols or images that represent ideas in a visually engaging way. 

They simplify complex information and make your slide more digestible, especially for visual learners.

Example:

In SaaS pitch decks, icons are often used to represent revenue streams (e.g., a recurring dollar symbol for subscriptions), customer segments (e.g., a business icon for B2B), and cost structures (e.g., a gear icon for operational costs). 

These visuals quickly convey the key aspects of the business model without overwhelming the audience.

2. Flowcharts

A flowchart is a diagram that maps out processes or systems using arrows, boxes, and other symbols to show relationships and sequences. 

Flowcharts are excellent for illustrating how different elements of your business model (e.g., value creation, revenue streams, customer interactions) connect.

Illustrate how your business interacts with customers, revenue streams, and partners in a step-by-step process.

Example:

Ledgy’s pitch deck illustrates its unique business model using flowcharts. Here is the link to the deck.

3. Tables

Tables organize data into rows and columns, making it easy to compare or display numerical information and categories. 

They are ideal for showcasing revenue streams, cost structures, or customer segments in a concise format. 

Example:

The WeWork pitch deck uses tables to showcase its revenue, as shown;

 Here's WeWork’s pitch deck.

4. Typography Hierarchy 

Typography hierarchy refers to the use of varying font sizes, weights, and styles to prioritize information and guide the audience's attention. 

This technique ensures that critical points (e.g., revenue streams, key statistics) stand out immediately.

Example: In a startup pitch deck, you could use:

• Large, bold text for key revenue figures.
• Smaller subheadings for descriptions.
• Italicized or colored text to highlight crucial details like projected growth rates.

For instance, the following Link shows how the Airbnb business model utilizes typography hierarchy;

Here's Airbnb’s  pitch deck

For inspiration, explore more sample pitch decks from major companies.

Tips for Creating a Winning Business Model Slide

A winning business model slide clearly communicates to investors in a flowing and engaging way. The tips below will ensure you achieve your presentation goals.

1. Be Clear and Concise

No use of technical terms or professional terminologies. Simplicity is key.

Before: “This is where an AI-powered solution comes in with features that involve the use of blockchain technology for decentralized work.”

After: That is why we combine the usage of AI and block to promote secure transactions.

2. Highlight Proven Success

If your business model is already generating revenue, emphasize traction with specific numbers:

• Revenue Metrics: The following primary metric is Monthly Recurring Revenue (MRR) or Annual Recurring Revenue (ARR).
• Customer Growth: Any traffic – growth rates, the number of paying customers, or retention rates.
• Profitability Milestones: Explain how and when some of the revenue streams considered are likely to become profitable.

3. Make It Investor-Friendly

Investor objectives should always match with the business model of your venture. Highlight aspects like:

• High margins.
• Recurring revenue.
• Scalability potential.
• Competitive advantages (e.g., proprietary technology, market dominance).

4. Use Real Data

 If your model is already profitable, you should include the actual numbers to support it. “We have reached the MRR and are paying customers; 1,200 customers are paying $50,000 monthly.” 

Before: “Our AI-powered solution leverages blockchain for decentralized operations.”

After: “We use AI and blockchain to streamline secure transactions.”

5. Align with Market Trends

 Explain how your business model caters to the present marketplace need or opening. 

For instance, stress on scalability when operating in digital markets when more and more companies adopt automation.

6. Incorporate Graphics

Using charts or diagrams alongside the content increases the likelihood of it being read and engaging.

7. Tell a Story

 Integrate as a part of storytelling for other sections of your pitch deck rather than telling a story on the slide by itself.

Common Mistakes to Avoid

1. Incoherence

Check that your business model fits with the problem and solution described above in this deck.

2. Being Too Vague

It is essential to prevent such statements from being used: “Our business sells products to customers.” Be specific:

• What products?
• To whom?
• At what price point?

3. Overloading with Data

It is also good to offer evidence, though it is advisable to avoid putting lots of text or data on the slide. The slides must be as graphic-oriented and bullet-pointed as possible.

4. Ignoring Competition

It is, therefore, expected that your slide should suggest why your business model is better than the competitors’ in a way. 

Focus on what differentiates the company from competitors and what gives it the edge.

5. Missing Customer Perspective

Your business model should make investors feel that you understand your customers and how best your business addresses them.

Final Checklist for Your Business Model Slide

Before finalizing, ensure your slide:

• Does it clearly explain how the business generates revenue?
• Are the value proposition and customer segments clearly articulated?
• Does it highlight scalability and profitability potential?
• Is the slide visually engaging and easy to read?

Conclusion

The business model slide stands as the foundational staple when it comes to presenting valuable pitch decks. 

A good business model slide does more than explain how a business generates its revenues; it also convinces you of its sustainability. 

Spend time fine-tuning this particular slide because it is the foundation of your presentation.

A transparent business model on the slide creates not only the desire to invest but also strengthens belief in the startup's viability.