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 Jersey

27 years experience in real estate management and acquisition.

$10,000,000 to $1,000,000,000

United States > New York

We are a family office seeking to invest and partner with other family owned businesses. We seek for cash flowing business with minimum EBITDA of $5M.

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

United States > New York

I live and work in New York City, and have begun looking for investments outside of the normal course (stock market, CDs, etc). I work as a corporate attorney at Kirkland & Ellis LLP, a law firm in midtown, and for the past 4.5 years have worked with my clients to navigate numerous complex corporate financing and investments. I would like to pair this experience with my personal savings and like- minded entrepreneurs, and eventually help advise and assist the growth of their businesses. I am a private investor, looking to invest in the beginning stages of businesses.

$25,000 to $75,000

United States > New York

Limited investment history, work as an actuary in a fortune 500. Private investor.

$10,000 to $50,000

United States > New York

Born and bred in Wisconsin and currently living outside New York City in Westchester County. I have a Masters degree in Fine Arts from the Chicago Art Institute and a Bachelors Degree from the University of Wisconsin at Madison. I have spent almost 20 years in the movie marketing business, working in the trenches cutting trailers and television spots for scores of campaigns. Five years ago I set up my own company here in New York that continues to grow each year. My investment experience is limited to real estate and basic stocks and mutual funds. I'm looking for promising new enterprises to invest in. I'm anticipating little involvement unless the industry is in or near to my own. I could probably be of use if that's the case. Otherwise I'd just leave it to the experts in other fields.

$1 to $25,000

United States > New Jersey

I am a successful corporate executive with skills in a variety of areas, looking to invest in a few side projects.

$10,000 to $300,000

United States > Florida

Our capital group has over 25 years of experience in lending. merger and acquisitions. We handle everything in the capital stack. I have over 25 years experience in banking and working with hedge funds. We work with over 40 different lenders.

$5,000,000 to $95,000,000

United States > New Jersey

I am 38 and have vast experience in finance. I have completed my BS in Commerce, MS in IT and executive MBA.

$100 to $50,000