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 > Illinois

I am an individual investor open to many opportunities.

$1,000 to $250,000

United States > Colorado

Prefer investment range of $20 million to $750 million (US dollars) Debt of equity or combination of debt + equity Prompt and thorough due diligence process Terms and structures arranged with a goal of MUTUAL BENEFIT You and your associates must be honorable and trustworthy, pass background investigations. Best of luck with all your business adventures.

$20,000,000 to $600,000,000

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 > New York

Software developer looking to invest capital

$0 to $10,000

Malta > St Pauls Bay

Over the past five or so years I have invested in and helped a number of IT software companies grow their business. These companies are globally spread (EU, US, Canada and Asia) and are typically NOT START UPS (even though I have worked with and helped start ups). They are companies in growth mode that are looking to IPO in the next few years but require additional capital /best practice marketing and selling to grow to their true potential. Hands on with an MBA majoring in marketing and accounting, I am well rounded and experienced at helping good software companies become GREAT software companies. As well as investing in these companies directly, I have and do also helped prepare and raise considerable funds (+$5M) FOR PRE IPO stage.

$100,000 to $5,000,000

Canada > Thornhill

Represent a business development firm, willing to help new clients in the media and technology space. Contact me for additional detail.

$500,000 to $10,000,000

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

United States > New York

I spent 3 years as a private equity lawyer and 5 years as an investment banker. I have an entrepreneurial spirit and represent a small group (2 people) of investors including myself looking for investment opportunities. I would be an active member of the company while my partner would be a silent partner. Together we have capital resources, a large network of professional contacts across many industries and achieved great success in our particular fields. We look forward to meeting energized people who are willing to work hard to create a great company.

$50,000 to $2,000,000