How to show your target customers in a pitch deck when fundraising for your startup?
Demonstrating your handle on your target customers and who they are plays a big role in fundraising. As well of course as being critical to your whole business and its longevity.
There’s a lot more to showing your target customers in your deck than most realize. So, how do you do it? Where does your target market show up in addition to the target customer slide?
The Importance Of Knowing & Showing Your Target Customers
The #1 Factor For Success
Experienced investors and entrepreneurs have gained much more appreciation for the role of the problem in startups. You can’t have a good solution or strong business, without getting the problem right.
However, it is only logical that you can’t get the problem right, if you don’t really know and have a handle on who your customers really are.
This is where it all stems from. It is the foundation. You either have a strong one or a flawed one.
Founders need to be focused on this and know that investors certainly will be.
Investors will certainly be thinking about how this is going to lead to an exit and deliver returns for them. Who your customers are may indicate who could be good future acquirers and how large they are. For example; are they a good match for Google, Salesforce or Facebook? This is a tricky part of how to show your target customers in a pitch deck.
This can be especially important for strategic investors who may see a path to partnerships and mergers one day.
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.
Demonstrating you are the right team to take on this problem is hugely important. If you are the best team, then investors will be confident you will figure everything else out, even if that means a big pivot. If you aren’t the best team, then someone else will come in and dominate this space at some point.
Showing your clarity on the target customers in a pitch deck says a lot about the strength and capability of your team.
Use Of Funds
Without complete clarity on your target customers, you simply cannot use any funds you raise well. Fundraising may help cover up for some of these blunders, but only if investors are willing to gamble on you still trying to figure out this core part of the idea and thesis.
Without intimately knowing and understanding your target customers you cannot create a market strategy accurately. You can’t build the right branding or solution either. That can mean millions of dollars and years of waste.
Get the target market right, and everything else will take care of itself in a logical order. This is a critical aspect of how to show your target customers in a pitch deck.
Defining Your Target Customers
The more deeply you can know your target customers the better. The better you’ll do at communicating with them, reaching them, marketing and focusing on the right product features and user experience.
This is embodied in your ideal customer profiles and avatars. For internal purposes, the more detailed you are the better.
This may include:
- Job titles
- Net worth
- Pains and aspirations
- Brand affiliations
- Which communications mediums they use
- What time of day or month they take certain actions
- Favorite colors, fonts, and devices, etc.
Of course, this is a lot of detail. Perhaps pages long for your marketing teams.
When starting out, you probably need to be hyper micro-focused on the best customers. It is the best way to make the most of your time and budget and get fast results.
However, when it comes to building a true hypergrowth startup with huge potential you may eventually need to zoom out as well. Your target may need to be much broader in order to be inclusive of enough customers.
looking for a more detailed overview of how to share information with investors? Check out this video where I explain how it’s done.
Your Target Customer Slide
Space and simplicity is your friend. You are going to need to simplify this to just a few bullet points to comfortably fit on this slide. Perhaps along with an image.
However, showing your target customer in a pitch deck really starts well before you get to this slide.
The Market Slide
Here you’ll show the total market. The biggest it could be if you could and wanted to serve them all. Next, you’ll break it down to your TAM, and SOM. Who you can really reach and serve right now.
The Problem Slide
Through your problem slide you will demonstrate your understanding of the problem you are solving, through your customer. You’ll be crisp and clear about the problem. Though also drop in how you’ve verified and proven this problem with your target customers in a pitch deck.
Solutions & Products Slides
This is a great place to use images to show your product and solution in use in real-life situations by your target customers. As they say, a picture is worth 1,000 words.
In tandem with your static pitch deck slides, you’ll also have a verbal story to tell. It is powerful if you can use this story to depict you as a target customer, them (the investors) as a target customer, and explain how you ran into the pain, and how they can relate.
It really all starts with your cover slide. The company name, your business address, contact information, branding, logo, and tagline all show the vibe you are creating, and the type of customer it is made for too. Make sure you’ve thought through this alignment in advance.
Hopefully this post provided you with some perspective as you are looking into how to show your target customers in a pitch deck.
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.