Pitch Deck Series – The competition

Welcome to the pitch deck series! This series will focus on tips and guidance for those of you who are working on your pitch deck, covering different aspects at a time. In working with a few entrepreneurs recently, I encountered a several misconceptions about the competition slide, so this first article in the Pitch Deck Series will start with that.

The competition slide

There is a good reason most pitch deck templates include a slide on the competition. After all - you don’t want to blindly launch or expand a business venture only to discover the space is occupied by existing players, or get disrupted with new emerging players. Failing to include a competition slide can send the wrong message and will certainly raise the question.

What your audience wants to know

With regards to competition, these are the questions investors will be trying to answer for themselves:

Is the team aware and knowledgeable about the competition?
Who are the competitors for this venture? What kind of players are they (large corporates, startups, etc)?
How is this venture different? Is there a sustainable competitive advantage?

A great slide on the competition can answer all of these questions without leaving a lingering doubt. You want your audience to walk away believing you are knowledgeable about the competition and can clearly articulate how you are different and advantageous in comparison.

An amazing slide can deliver these messages even without the voiceover. Since this is a nuanced topic and the differences can be difficult to grasp, it is often very difficult to achieve.

Some common pitfalls and misconceptions to avoid

As with all slides in a pitch deck, the competition slide is merely a succinct way of articulating your competitive situation and advantage. Therefore, some of these pitfalls are also relevant for de-risking your venture and shaping your strategy. Competitive differentiation itself as a topic is worthy of a separate writeup, here let's focus on the pitch deck aspects.

Thinking that having competition is a bad thing

A misconception I've encountered is that showing you have competition would drive investors away. Having competition serves as a validation for the market need and potential. Sometimes competitors also help with market education and development, especially when introducing something new to a market.

Force fitting into a comparison table format

Often, a comparison table with chosen attributes is a good way to demonstrate how you are different but it is absolutely not the only format. For example, if your venture changes the paradigm more fundamentally (think old game -> new game), a table might not be the best way to explain it.

Forgetting the status quo may be your biggest competitor

If you are solving a real need, chances are there is some way people are solving it today. The solution could be a competitor, but when introducing a new innovation it might be the status quo. As sub-optimal as it might be is, it is a force to be reckoned with. Including it as a "competitor" can be very relevant and serve as a good way to highlight the pull and push towards your solution.

Merely listing the competitors without highlighting how you are different

Listing the competitors, their categories, etc is important but not enough. You have to clearly articulate how your venture is different in comparison and make your competitive advantage shine through. Make sure the slide tells this story.

Listing completely irrelevant competitors

Avoid listing completely irrelevant competitors that are not addressing the same need. I've seen cases where competitors were listed because "they might enter the space" or simply to "fill the slide". If you woulnd't end up selling against them, they shouldn't be on the slide.

Only listing competitors in your local market or ecosystem

Don't restrict the competitive overview to playes in your local market or ecosystem. At the very least you should include competitors in your target market(s). Global players or earlyer stage ventures in your space can also be relevant if your target markets are reasonable targets for them as well.

Focusing only on feature comparison

This anti-pattern is especially popular with technical background entrepreneurs. Competitive differentiation is no just about technology and features, and many feature gaps can be closed. Competitive differentiation comes in many shapes and sizes beyond technology and features: Business models, pricing, delivery models, sales channels, etc. Make sure your comparison is holistic, and helps showcase a sustainable differentiation.

An overly positive assessment

While it is tempting to show how you are the absolute best at everything compared to competition, you need to balance the "selling" with a good dose of honesty. The extreme version of an overly positive assessment is a statement of "we have no competitors" because you are so good. To establish trust with your audience make it an objective and honest assessment. You are always in control of the attributes and basis for comparison to paint a favorable picture, but it doesn't mean you need to be the best at everything.

Any suggestions on aspects you struggle with?

What other portions of your pitch deck do you struggle with most? Let me know what you'd like to see next in the series in the comments.