Your business model slide needs more than just a pricing description. To convince investors, your slide must explain:

• How you will make money

• Why that engine will be efficient

• How it will turn into a competitive advantage in the long run

🧠 Treat your business model as more than a pricing slide

Your slide should not be just a list of pricing tiers. For instance, one SaaS startup’s slide simply listed “Basic: $25/month, Premium: $50/month.” Investors don’t care about these details without understanding your overall vision.

Explain the general mechanics of your business model. Mention your primary revenue streams, such as subscriptions, transaction fees, or onboarding revenue. Describe the key pricing drivers (number of seats, features, or other relevant levers). For example, “We generate revenue through subscription fees based on the number of seats. Additional revenue comes from transaction fees for premium features.”

🫵🏼 Focus on key revenue streams

Don’t overwhelm investors with every possible way you plan to earn money. Early-stage companies should focus on one to three core revenue streams. A recent deck we reviewed listed all possible models, including advertising, affiliate marketing, and data sales, making it overly complex and unconvincing.

Provide a succinct explanation of how each core revenue stream works and include relevant numbers (price ranges, percentages, etc.). Clearly label future revenue sources as secondary or potential expansions. For example, “Our primary revenue streams are subscription fees and transaction fees. In the future, we plan to explore advertising revenue as our user base grows.”

👑 Highlight your competitive advantage

Picture the unique aspects of your business model that give you a competitive edge. One client of ours successfully highlighted their low-cost model due to zero CAPEX, which resulted in significant advantage over competitors with higher operational costs.

Emphasize your “secret sauce” that de-risks your business model and demonstrates long-term viability. Compare your advantages to competitors, either by naming them or by showing how you stand out. For example, “Our low-cost model allows us to offer competitive pricing while maintaining high margins.”

🏆 Discuss business model economics

Illustrate the strength of your business model with key unit economics. Highlight metrics like Customer Acquisition Cost (CAC), Lifetime Value (LTV), LTV to CAC ratio, payback cycles, and profit margins. A hospitality deck that raised $1M effectively showed a low CAC with a high LTV, projecting profitability.

If you lack reliable data, focus on the key assumptions of your business model. For example, “Based on early tests, our CAC is projected to be $10; with a user price of $30, our model becomes instantly profitable. We expect a solid LTV to CAC ratio of 3:1.”