Entrepreneur - Business Plan Tips

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 > Georgia

We'd like to make a minimum return of 200% over 3 yrs. We are from the real estate business. Consider us group investors.

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

United States > California

Looking to invest

$0 to $60,000

United States > California

I am looking to invest in dynamic growth companies. My associates and I are highly respected industry leaders with over 185 combined years of Finance, IR, management and Media experience. We believe Angel Financing is a highly specialized business discipline that requires expert knowledge. The capital markets requires creativity, discipline, an understanding of legal and accounting issues and most importantly, daily interaction with the Street. To be effective relations need to be in sync with broader fundamental strategic goals that support growing shareholder value.

$3,000,000 to $75,000,000

United States > New Jersey

My name is Abraham Rodriguez, currently living in north Jersey. My future involvement in investing ranges from hands-off to advisory, depending on the product or company needs. I will work directly as an individual investor.

$1 to $50,000

United States > Florida

Over 6 years of international experience in finance and audit in the bank industry. Looking for great investment opportunities (cash available: $2m) Recently worked as a Vice President of Finance of a publicly traded company in the Healthcare industry based in Florida. I was responsible for all filings with the SEC, along with the coordination, analysis, and preparation of financial plans and operating forecasts. Prior to that, I was Vice President of a Merchant Bank in NYC, where I managed a team of analysts for investment opportunities, sourcing deal flows on potential targets, and was responsible for post-acquisition management and financial reporting. I was involved in three reverse merger transactions. I worked for 4 years at Ernst & Young in both Paris and London, where I became a senior auditor in the Banking Capital Market Department. Prior to that, at Natixis Bleichroeder in Paris, I had an active participation as a market-maker on the Euro Stoxx desk.

$50,000 to $2,000,000

United States > Kansas

My name is Trevor and I have been in business all my life. I am part owner of an office/supply store and the sole owner of Calvin Well Service, LLC. (Oil & Gas industry). I have invested from $500 dollars in some cases up to $20,000 in others. I have a top of the line accounting team that can handle any situation that arises. I am looking to be a silent partner, but want the capabilities to see how the business is doing at any time I desire. I am currently an individual investor, but have a small group capable of investing $100,000 if needed. I am currently looking to invest in smaller amounts due to the short time involved with this website.

$1 to $15,000

United States > New York

Have profitably invested in start up companies from event ticket brokers to mobile phone distributors. Experience in money management, sales, purchasing, and managerial positions. Private investor.

$10,000 to $250,000

United States > New York

Will consider a wide variety of investments and structures on sizes ranging from $50,000 to $500,000 with the potential for add-on's. I have worked in the asset management industry for over 10 years investing in both debt and equity instruments. I am familiar with a variety of industries and have an extensive rolodex. I am a private investor that will invest independently or bring along several family offices.

$50,000 to $500,000

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