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 > Kentucky

I have over 20 years of investment experience having worked for 2 wall street firms.

$100,000 to $50,000,000

United States > Georgia

Serial entrepreneur. Group investor. Former broker, registered principal. Owned a successful international venture consulting business.

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

United States > New York

I'm a college graduate and Brooklyn resident with 10+ years in the event production and hospitality sectors. I am an Angel Investor in over 15 companies and am looking for silent partnerships in ventures.

$50,000 to $500,000

United States > Florida

Owned a MFG Plant. Owned an Invoice Factoring Company. Owns an M&A Firm. Currently EVP of an Invoice Factoring & PO Funding company. Sits on the board of the Angel Forum in Florida Past President TMA Florida and board Member ACG.

$25,000 to $1,000,000

United States > Pennsylvania

30 years experience in all aspects of finance

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

United States > Connecticut

I am a 31 year old Investor with an interest in Investing in the areas/fields that I strongly believe in. I am currently employed in health care sector with an MBA degree. I am highly motivated with excellent communication and inter-personal skills with a strong desire to be successful.

$5,000 to $50,000

United States > Michigan

BSc (Computer Science) MBA Extensive experience as an entrepreneur. Have started companies from startup stage, to international franchising and publicly listed a US based franchise on the Frankfurt Exchange. Extensive experience in B2B and service based industries. Well versed with international business, different cultures and how to build businesses across borders. Dual citizen (Australian, United States). I am looking to be a part of a team to help run and build an established business that does not require "on-site" attendance. I am looking for something that I be involved in remotely. I am willing to travel internationally. So I am looking for active involvement and can also invest.

$20,000 to $100,000

United States > New York

Founder of Private Health Care Software Company formed in 1992. Company specialized in Practice Management Software (Billing / Scheduling / Office Management). Company was sold to a Public Company in 1998. Became Chairman/CEO of the acquiring Public Health Care Software Company in 2002. Company had 1500 employees, 28 locations and over 80,000 clients. Restructured public company and increased company value by over 800%. Company was subsequently sold to another Public Company in 2005. Subsequently, started MyCellCash in 2006, which mission was to facilitate cash transfers via text messaging. Decided that the technology available at that time was not sufficient to bring to market.

$25,000 to $1,000,000