What is the best way to show the problem your startup is taking on in your pitch deck? In the words, how to address the problem in a pitch deck?
Your startup is all about solving this problem. Being able to convey it to others well may make all the difference in your ability to get funded or not. So, how should you address presenting the problem when fundraising? How do you do it incredibly well, and perhaps not only pick up some additional capital, but new ambassadors and helpers with expertise at the same time?
How Important Is The Problem In A Pitch Deck?
Most entrepreneurs don’t get this. They are blind to it. The problem is the most important part of not only your pitch, but your business as well.
If you get the problem right, everything else will fall in line.
- Find the right advisors
- Hire the right people
- Secure the best investors
- Find the right solution
- Design the right product ideas
- Roll out the best marketing
- Stick with it when things feel rough
- See your business thrive and grow
- Achieve an exit that goes on to live out the mission
With the right handle on a strong problem, you’ll start a business that has longevity, and can give birth to many great solutions and products. You’ll see results sooner, grow faster, and get a lot more out of the funds you do have. In turn that will lead to more funding, and on better terms.
This is why the problem is far more important for investors than your initially proposed solution. So, don’t be afraid to take a moment to double down and dive into the problem and hone it, and even spend 50% of your time in your pitch focusing on the problem.
After all, if you don’t have the problem right, then the solution is definitely wrong.
Where To Start Addressing The Problem In A Pitch Deck
Addressing the problem doesn’t have to wait for your problem slide. It shouldn’t.
Demonstrate clarity and focus right from the cover slide and outline of your pitch deck with a strong tagline or slogan.
This shows them you know what you are doing right up front, and should earn you some extra credibility, even before they start swiping through your slides. First impressions count for a lot. Don’t blow yours.
Identifying and presenting the solution can make a world of difference in developing a business concept. Take a look at this video where I can explain how to come up with an investor worthy business.
The Most Important Slide In Your Pitch Deck
If the problem is the most important part of your startup and pitch, then the problem slide is the most important one in your deck.
That doesn’t mean you make it complicated or squeeze five times as much text onto this slide. In fact, the opposite may be true. Keep it clean, simple, and focused.
Forget all of the side problems your initial solution might help solve, or the other benefits and features. Hone in on just one main problem.
Since your slide space is so limited, your verbal pitch and presentation are where you get to talk around your slides and bullet points and really drive it home.
Begin with your story of how you encountered this problem. Images are great for conveying emotion too. Tell it in a personal story. One that your investor audience can relate to.
Describe how you then intentionally invested time and energy in exploring and verifying this problem. How you made sure it was a real problem that others were struggling with too.
Talk about how you measured it, and gauged the sense of urgency among potential customers. As well as testing the demand for and the value of a solution to this problem.
This might sound like a lot of work, but if you don’t do all of this, you can’t be sure about the problem. You could waste years and millions of dollars going in the wrong direction. If you can’t be bothered to make this investment, why would investors bother to give you the time and capital they have worked so hard for?
This is where you show how big this problem is, and how much it is growing?
Use big data points. Be specific about the segment of the market which you really plan to appeal to and can serve. Try this marketing analysis template as a starting point.
Keep in mind that in fundraising storytelling is everything. In this regard for a winning pitch deck to help you here, take a look at the template created by Silicon Valley legend, Peter Thiel (see it here) that I recently covered. Thiel was the first angel investor in Facebook with a $500K check that turned into more than $1 billion in cash.
Remember to unlock the pitch deck template that is being used by founders around the world to raise millions below.
The Solution Slide
Of course, no one wants to be brought a problem without a solution for it. So, what is your intended or existing solution for this problem?
Keep it as simple as you kept your initial problem slide.
All of the details can be shared later. You can also follow up with a product and business model slide which lay it out further.
Competitive Analysis & Advantage
Your competition analysis is also a critical part of addressing the problem in your pitch deck, and gaining backing for your solution.
What other competition is out there? If there isn’t much, why is that? Can that be an advantage? Who may want to create a solution for this space? How may that lead to partnerships, distribution channels, or even a grand exit?
What are existing competitors doing well or poorly? What is the void that they are leaving on the table? How are you going to do better in comparison? What is your competitive advantage?
The Team Slide
What is this best in class team that you have assembled to champion this problem? How are they uniquely experienced and skilled to do it? How committed and resilient are these people, to keep going in the face of adversity, even if this first solution attempt and the product isn’t perfect or has to pivot?
You may find interesting as well our free library of business templates. There you will find every single template you will need when building and scaling your business completely for free. See it here.