[MUSIC] By this stage of the cost project you would have completed your business model canvas, which provides a holistic overview of your startup idea. The next step is to develop your pitch. One part of the pitch is developing a pitch deck, a set of presentation slides you will use when you deliver your pitch. A pitch deck is usually 10 to 15 slides and provides a short summary of your startup for investors. I am going to cover the essential components of what goes into a pitch using our Joker example. You will notice when you see pitches created by others that the components and terms may vary. It is best to do your research on who you are pitching to and the idea you are pitching. In our Joker example, we will cover the following components, problem, solution, value proposition, product demo, market, customer traction, competitive advantage, business model, investment and team. Now let's get into creating a pitch for our Joker example. We start by looking at the problem. This is probably one of the most important slides in your day. Here, you answer the question. What is the problem and how do you know it's a problem? Remember to be simple and concise. In our example, here we identify the pain point Joker is trying to solve. In South Africa, 90% of small business owners do not have access to card machines which limits their sales and reduces their revenue. There is a lack of access to this technology because the process of getting a card machine from banks is long, complex, and expensive. This is because traditional financial institutions categorize small entrepreneurs as risky. Next, your solution. At this point your investor buys into you. You've identified a huge problem and you've done your research. So what is your solution to your identified problem? Joker provides affordable card machines to entrepreneurs. The product can be bought on the Joker website and is delivered within 48 hours of ordering. This reduces the complexity associated with buying the card machine while keeping it affordable. With quick card machine delivery, a 30 day money back guarantee, small transaction fees, or no monthly fees accepting payments has never been easier. What is your unique value proposition? What makes Joker unique is how it responds to the problems faced by emerging market entrapreneurs, especially those trading informally and market often ignored. Formal financial institutions have many barriers for these kinds of entrepreneurs and our business doesn't. Joker allows you to accept payments anytime anywhere. Moving on to the product demo slide. You have excited your investor with your solution. Now, you have the opportunity to give them a quick demo. Your demo should cover how your product or service works and the value it brings to the customer. Joker has created a small portable wireless card machine that fits into your pocket and works with your smartphone for payment solutions on the go. This allows small business owners to freely move around without any concerns. This can be used by street vendors and other business owners in emerging markets who do not have continuous access to electricity. For the market slide investors are interested to know what your potential market is as it is an indicator of your success. Do your research on the possible market size and avoid exaggerating. There are currently 6 million informal traders and small businesses. With this number on the rise less than 10% of these businesses accept card payments while 75 to 80% of adults have access to bank cards. Let's look at customer traction. This serves as validation of your solution and proof that customers exist for your investors. Over a six-month period since its launch, Joker has registered 600 small business owners with 400,000 approved card transactions. Of this, small business owners 70% of registered users have never accepted card payments before. Moving on to competitive advantage. How does your startup fit in the landscape? Who are you competing against for market share? What makes you different? Joker is a first-of-its-kind locally. This means that the market is not saturated and there are no barriers to entry. Our solution is innovative and affordable which makes the business more competitive than banks and other established financial institutions. This takes us to our business model. How do you make money or plan on making money? Joker has an initial one of course when the card machine is purchased. There is a 2.5% transaction fee on all card payments and goes down the more you sell. There are also planned value-added products such as point of sale software and accessories. Next investment, here we are indicating to investors how much you will need to validate or scale your business model. For our Joker example, we are looking for funding of 2 million rounds to cover the cost associated with scaling product development, talent manufacturing, and infrastructure development. Next is team, here you give a concise overview of who is on the main team. Their qualifications and experiences. Remember investors are investing in people. They are investing in you. So while this may seem like it's an easy point to cover it gives investors confidence in the abilities of your team. For example, the founding team has three members who have extensive experience in the consulting industry. These are all the elements that are essential when preparing your pitch to investors. In this week's assignment, we are committed to asking you to submit your pitch deck for your startup. We have included a list of websites and resources you can use to design an awesome pitch deck. Your peers will have a chance to review your pitch deck and give you something back. [MUSIC]
