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

I am a Private investor with plenty of contacts and a strong following when the right deal is found. I have been a trader for the last 15+ years so I am comfortable looking at a company and seeing if there is any value. Hope to be able to help soon.

$5,000 to $100,000

United States > New York

I am an investor in the New York area seeking a business to invest in. i have experience is retail and the food service industry as well as banking and the military. I am really open-minded, hard working, educated and ambitious. I have a degree in Business Management and am pursuing my second degree in the same category. I consider myself as an individual investor, I had dreams of starting my own business however I decided I would like to invest instead. I will consider any reasonable investment opportunity. Ideally, I would like to be partner as opposed to simply an investor

$0 to $20,000

United States > New York

I am a civil engineer that owns two engineering firms, one outside the country. I have deep knowledge in design and construction project management

$20,000 to $500,000

United States > New Jersey

We offer a variety of creative lending programs based on your situation. Bankruptcy and foreclosure is ok. We like to qualify your business for one or a combination of several funding programs. To do this we need you to send us an executive summary / business plan / or funding proposal. We also need a copy of a credit report issued in the last 30 days. If applicable include any information on the real estate involved including pictures. Funding ranges from 100 k to 50 mm.

$100,000 to $100,000,000

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

United States > New York

I am a former consultant for Internet start ups, all of which folded during the Internet bust. Despite the negative outcome of my work, I still strongly believe in innovation. Given the risky nature of angel investing and unpredictability of innovation, my investment objective would be to get up to 35% over a period of 5 years. I am a private investor.

$5,000 to $20,000

United States > Connecticut

Private investor in family owned or closely-held businesses. We emphasize preferred and common stock investments, on a minority or majority basis, in businesses desiring growth capital or seeking to recapitalize their business. We focus on companies with solid growth potential that are cash flow positive. Previously an officer in the loan workout group of a major money center bank and a corporate loan officer in the bank’s energy division. Have invested in approximatley 12 transactions ranging in enterprise value from $7 million to $465 million.

$50,000 to $1,000,000

United States > Arizona

I am a young entrepreneur looking for potential start ups to invest in that I feel will have a good return. I have started multiple business and am always looking for the next best idea. I have experience with internet start ups marketing the real estate and college market.

$500 to $50,000