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 > Michigan

Our firm has successfull invested in small to medium cap manufacturing firms since 1982 and an International Trading Company for 15 years. We now operate two Private Equity Funds with $500 AUM. We also have a new Fund with US OPIC backing supporting investment in Sub- Sahara Africa and are interested in products or services applicable to that region that is economically sustanable and provides social improvements to the local population.

$2,500,000 to $250,000,000

United States > New York

Single, Male, 32 years old. Business College graduate, looking for a silent or active partnership in a promising or growing business. My current investment experience is based squarely on stocks. I am looking to expand and diversify.

$5,000 to $300,000

United States > New York

I am a V.P. with a Wall Street Investment Group; that have partnerships with Private Equity Investors, Hedge Funds, Hard Money Investors, Joint Venture Capital Firms, etc... that funds deals based on the project. Interest only payments made annually, not monthly. Balloon payment due at the end of the term of the loan. Funding available as an Equity Partner also available. Loan amounts that are funded are anywhere from $500K to 100 Million+. Please submit your projects that are in need of funding and the deal will get submitted directly to the funding source. We work with Brokers and Principals all around the World. Thank you and we hope to work with you on your next deal.........

$1,000,000 to $100,000,000

United States > Washington

Property Investor and engineer looking for investment opps for others.

$1 to $100

United States > New York

Registered Investment Firm seeking relevant opportunities

$1,000 to $100,000,000

United States > North Carolina

I’m an independent investor. I like to see business flourish and yield returns. I know funds are very rare these days and due to the present economic situation of the world now, it requires few people privileged to have the funds required to make successful business and ventures. This project will require me to come down to you to finalize. I am well pleased to have met someone like you and hopefully we will have a long lasting business relationship with you .I can tell you that I’m quite fortunate to have inherited some fortune spread across some financial institutions across the US and Offshore. I had always thought of establishing a successful businesses and ventures but due to my disability, I thought of an idea of making entrepreneurs and business owners achieve their goal and become successful. Being part of their success would have made up for my inability to completely create a business system for myself.

$50,000,000 to $90,000,000

United States > Indiana

A Bsc (hons) degree. Had started more than a dozen businesses over the past 20 years. Started as a day options trader during the high tech boom of 2000. Then moved into Real Estate investment mostly in Chicago metro and Heath care sectors., which I still do today.

$150,000 to $550,000

United States > Colorado

I invest personally in some ventures and I may refer (at no cost o the entrepreneur) them to company in California with greater resources. My background is in accounting (so your projections should demonstrate your solid understanding of the economics of your business and how it will succeed), the financial industry (banking and mortgage) and consulting. I have started a company from the ground up (been through the PPM process a few times) and been a part of a team that has grown a company rapidly and sustained that growth over years. I've been on both sides of mergers and acquisitions. I've experienced what it takes to succeed and managed through some difficult situations. I'm looking for companies with a strong core team, proven track record or can provide proof of concept (orders, contracts, LOI's, prototypes, etc) and have a innovative product/solution/approach that has tremendous upside potential. You need to be beyond the "idea" stage.

$500,000 to $5,000,000