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

Canada > Thornhill

Owner/operater management consulting business for 15 years

$100,000 to $150,000

United States > Georgia

I personally have over 24 years of financial experience in the government sector. My goal is to help as many start ups and small to mid size businesses secure alternative financing as possible! We have the capacity to orchestrate and facilitate creative solutions for even the most difficult transactions. The types of financing we are able to mitigate are 100% Joint Venture Equity Financing, Large-Scale Debt Financing, DIP Financing, Apartment Equity Participation, Non-Recourse Loans for Multifamily & Assisted Living, Commercial Bridge/Hard money: Commercial Land Development, Mezzanine Programs, Loans For Incoming Producing Property, Commercial Land Development Loans, Stock Loans: Non-recourse stock loans. Loan amounts range from $250K to $500ML

$250,000 to $500,000,000

United States > Florida

I have been a successful real estate developer for the past 30 years and my interest is shifting to technology, medical and new invention that I can use my experiance to grow the company into a possible pre-IPO

$1,000,000 to $5,000,000

United States > New York

lawyer and MBA Started Wall Street in 1981 Have been partner in Wall Street firm and founder of two $1 billon closed in fixed income and equity with focus on fixed income as principal and syndicator

$1,000,000 to $50,000,000

United States > Michigan

Former community bank president, 10 yrs experience as private investor/consultant. Now leads group of investors.

$10,000 to $200,000

United States > New Jersey

Assisted for over five years with a private company during that time steady growth was maintained. The industry I represented had been in the health sector.

$0 to $8,000

United States > Washington

Working on behalf of my contacts to bring them deals that fit their investment Criteria. I have build a network that I would like to bring potential break though investments to the table.

$10,000,000 to $800,000,000

United States > New York

Private investor looking to invest in stable projects.

$2,500 to $10,000