New York Investment Network

Business Plan Tips

What Investors Are Looking For In A Plan

Investors, whether angels or VC's, are looking for the same things when reading a business plan. They want to know how big the opportunity is, whether this is the right team to exploit the opportunity, who the competition is, what the risks are, and why they can expect this team to implement successfully. Your job in writing the business plan is to address these questions convincingly and clearly.

Emphasize Your Real Strengths

Highlight what your team brings to the table. If your business hinges on a particular competency (for example, understanding the procurement process), your plan will be more persuasive if one of your team members knows something about it and that is brought out in your plan. Rather than including generic resumes of team members, tailor the resumes to draw out the experience each member has that will make him or her a valuable contributor.

Get To The Point And Make It Clear And Comprehensive

Investors see many business plans. A 20-page plan which clearly lays out your business is far more likely to be read than a 100 page plan. Today, some entrepreneurs are using a 15 slide Powerpoint presentation. If your text is short and punchy, you won't need to repeat yourself, because the reader won't be bogged down keeping ten chapters in their head. Reading the same thing over and over, even if it's in different words, can get really tiring. The more you use brevity and give each concept a single home in your document, the more people will want to read it.

Write In Plain English

If you can't explain your idea in English, either you don't understand what you're talking about (What is a transaction enabled atomic journaling database server, anyway?) or you haven't simplified the idea enough. Think, revise, and try again.

Get Rid Of The Hype

Yes, we know you will be the "premier insert product category here of the Internet, achieving 99% market penetration with 60% customer retention in 3 months". Your product will reach "new heights in customer experience through the use of personalization and one-to-one profiling and customization". It will be "user friendly" because you will be creating a truly "ecstatic customer experience". It is a "quantum leap forward" in the marketplace for product category here. Um, yeah. Believe me, we've read it before. About a dozen times today, in fact. (And by the way, the phrase "quantum leap" really doesn't mean anything.) Stick to a tight, simple explanation of your idea. Convince your reader you'll be the best because your idea is the best, not because you can string a dozen buzzwords together.

Use Quantifiable Information

In each section, back up your assertions with solid facts. Even if you are a new venture and cannot give specific figures on the performance of your business, quote figures for the industry or your competitors. These real figures carry more weight than your assumed projections and give more reality to your plan.

Choose A Huge Market

Especially in the internet world, investors are looking more at the market than at the detailed specifics of your financials. Choose a market that is big enough to be an obvious good opportunity. A business which targets teenage girls who listen to music and has a reasonable chance of capturing 90% of the girls that are online is a huge opportunity. A business which targets net-savvy SAAB mechanics who need prosthetic limbs is not.

Local Investors

United States > New York

I am a Private Investor who looks for projects that offer Durable Competitive Advantage and that I can offer not only my financial assistance but yet my edcuation and experiences in business development. I am a former Fire Protection Specialist from the Department of Homeland Security. My ability to invest comes from consistant profitable returns on family investments leaving me the ability to invest in others and new businesses. I have a Bacholers of Science Degree in Safety and Environmental Engineering.

$10,000,000 to $45,000,000

United States > New York

Looking for investment opportunities in tri-state area. Will look at each investment opportunity independently in order to best assert the investment amount, percentage control, and other factors.

$1 to $15,000

United States > Massachusetts

Launch Angels is an early stage venture capital firm. We raise micro funds ($1-2MM) to invest in early stage companies. We look for great management teams, early traction, and sustainable markets. We have raised one fund so far and have selected five companies for investment. We are a silent investor, but are willing to advise at the request of the companies. Our investment committee has significant experience in venture capital and early stage investing.

$25,000 to $125,000

United States > Georgia

I'm a private investor

$2,000 to $10,000,000

United States > New Jersey

I'm a senior management executive with 20 years direct experience. Married, living in New Jersey. Bachelors and 2 Masters Degrees - Ivy League No investment experience Can be advisory, silent, or somewhat hands-on if the situation required this involvement. Individual investor.

$10,000 to $100,000

United States > New York

Successful entrepreneur, built and sold 3 companies. Have been a strategic investor for the past 10 years...

$50,000 to $5,000,000

United States > Florida

Over 30 years of professional sales experience, sales management experience, and investment consultation services experience; including B2B sales, insurance sales (licensed in over 40 states), venture capital raises, PIPO projects, investment consultation, and retail management; possessing a strong, fair, and responsible work ethic.

$1,000,000 to $99,999,999

United States > Illinois

Operated a business for many years, know HVAC market really well.

$0 to $150,000