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 > California

Young investor with excess income. Looking to invest in interesting products/services. Military and civilian background.

$1 to $100,000

United States > California

I fund government and private corporations projects worldwide. Minimum amount is $10M. SERIOUS BORROWERS ONLY. Should have a sound and complete Business Plan. I will only respond to borrowers who submits and Executive Summary. Preference will be given to projects in the US and in Asia. Looking for government or JV deals. -private investor

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

United States > Texas

Will provide loans from 2,000 to 10 mil with 3% over 30 years

$2,000 to $10,000,000

United States > New Jersey

Extensive real estate investment financing experience. At this point I am interested in fix and flip opportunities. Private investor and I manage a small investment group.

$10,000 to $200,000

United States > New York

Currently involved in acquiring REO properties for short sales in New York. These acquired homes will be sold @ 20-50% discounted prices. My background is in Media Production as well as Marketing and Public Relations. I am currently a private investor in the process of creating a solid team of investors.

$5,000 to $10,000

United States > New York

Looking to invest in a nice business and make money

$500 to $30,000

United States > Colorado

As chairman of the Transwestern Financial Group of companies, historical involvment has been in representing borrowers, lenders and investors in varous consulting capacities regarding project structure and financing, sale/acquisition and intermediary negotiation. For past 3 - 5 years, activities have been primarily as an individual investor-lender and manager for a private family-owned investment trust and as financial advisor to selected projects and clients. Present services consist of acting as a financial advisor to a select range of clients including direct investment, financial structuring, financing and intermediary negotiation.

$100,000 to $25,000,000

United States > California

I am involved in real Estate investments. I have been in the technology field for many years and in the Real Estate area for the last 10 years.

$50,000 to $1,000,000