investor deck series- investment


Lesson 1: Income Statement

In this investor deck series, I am going to be covering the most important areas in producing a pitch perfect presentation to gain your investment. This week I am looking at the Income Statement, commonly known as the profit and loss account, which shows your turnover or sales revenue, costs and, most importantly, profits.

When presenting your past results and future forecasts of your business you’ll want a slide showing your complete income statement by year, separate slides showing sales revenue by month broken down by product type or category, and slides showing costs and profit by month. When presenting these numbers, be concise, don’t put too many numbers on one slide. You can always include summary slides and if a certain topic needs delving into deeper then do this on a separate slide.


Turnover or sales revenue is a numeric value representing total sales of your business be it from selling goods or a service, and it is usually shown monthly and annually. You will need to show past results of the business and be able to explain why it has improved or declined at certain times. Investors will be especially interested in future forecasts and how the business is going to grow. Future forecasts usually go forward 3 to 5 years. It’s important to be sensible with future projections and make sure you have solid reasons to justify any future growth.

To estimate your future turnover/revenue:

  1. Think about your business, what you are selling or providing and whether sales can be broken down into certain product types or units. Look at your past sales by product type or unit and what trends you can see and how future strategic changes and improvements will influence your sales. Maybe you plan to sell a new product or have a new marketing campaign or plan to take on extra sales staff. All of these things will have an impact on sales. Also, think about seasonality, do you tend to sell more at certain times of the year?
  2. Start to forecast sales by unit or product type by month. This is where spreadsheets are very useful for entering data, using simple formulas to calculate number of units sold x sales price to give you sales revenue for that unit or product type.
  3. Once you have forecasted number of units sold and the sales prices, you need to total them all up and review the results by month to see if the overall sales revenue looks sensible. If there are monthly spikes or dips then you need to look at why and adjust if necessary. The most important thing is being able to confidently talk about what your sales are forecast to do and justify any growth in sales.


Costs need to be broken down into certain types – 1 Cost of goods sold and 2 Overheads or Operating Costs. If you sell goods then you’ll have Cost of goods sold, which is the price you have paid for the goods you have sold. Every business will have Overheads or Operating Costs, which are basically all of the other costs you incur that are not costs of goods sold. 

Investors will be interested in Gross Margins– this is your sales price less purchase price (or cost of goods sold). To calculate this as a percentage you need to divide the gross margin by the sales price.

Overheads can be broken down further into subcategories like salaries, rent, utilities, distribution costs etc. You need to look at past overheads that you’ve incurred and how these will change going forward. You will probably want to show your overheads on a separate slide and highlight the main ones you incur. As your business grows it is inevitable that certain overheads will also increase.



Your profit is the financial gain your business has made during a certain time period. There are 2 types of profit that you will need to present; gross profit and net profit.

Gross profit is sales revenue less cost of goods sold. 


Sales = £60,000

Costs of sales =£25,000

Gross profit =  £35,000


Net profit is the actual profit made after overheads or operating costs, which are not included in the calculation of gross profit, have been deducted.


Take above figures and deduct your operating costs

Gross profit= £35,000

Operating costs= £25,000

Net profit= £10,000

Investors will be especially interested in net profits and this could ultimately be what has the biggest influence on their decision on whether to invest or not. A business currently making little or no profit will pose a risk to them, but if you can demonstrate that significant future profits are possible and that you are in control of your costs then investment is still possible. Another huge influence on whether they invest or not is YOU. If you can show that you know your company inside out and have a clear profitable, achievable plan for the future, then you have a great chance of investment.

Here’s an example of how a summarised monthly income statement looks:


monthly income statement 

Coming soon… We explore the Statement of Financial Position or what is more commonly known as the Balance Sheet.

Investor Deck Series – Income statement

Post navigation

Leave a Reply

Your email address will not be published. Required fields are marked *