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 > Texas

I am an individual investor and a real estate investments specialist with financing and private funds in place ready to adquire minimum three iincome producing properties per year. Currently $800,000 multi-family portofolio, expansion and diversification is THE GOAL.

$30,000 to $3,800,000

Georgia > Tbilisi

Seasoned executive with 20+ years of experience in finance industry. While living in Georgia, I'm Looking for opportunities for investment outside the country. I have MBA degree from IE Business School. Looking forward to receive interesting proposals.

$50,000 to $200,000

United States > California

Married living in California with business in IT and Construction.

$1,000 to $60,000

United Kingdom > London

I am an individual in touch with may consultants and finance contacts in London. I am looking for projects in India, USA, Europe, Middle East that require funding. Even 100% funding requirements may be looked at. Please contact me provide that you have all the feasibility reports, information on the income stream and how the investors will get their money back clearly written out to me. The IRR, Pay Back period and the information on the sponsors needs to be available with all the experience clearly written to convince the financers that this is a good project worth while investing in. Hotel projects/ Real Eastate projects/ Cement projects are of interest to the financiers.

$20,000,000 to $90,000,000

United States > Texas

Working on behalf of Attorney at Law facilitating financial transactions,

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

United States > New York

Thanks for reading this, and good luck in your search process. I currently work in private equity (lower middle market so I could be exposed to hundreds of smaller, everyday companies) and was a former McKinsey consultant. Prior to that, I studied economics at UChicago and was my own entrepreneur (although a business model reselling coffee beans was not a huge success admittedly!) I have extensive investing and operational experiences from analysis, strategic structuring, to just hands-down knocking on doors. Within my job I also handle legal, accounting, and debt-related contracts and topics. Passionate about partnering with strong entrepreneurs in many capacities: from advisory to full partner status, depending on what you need. Can additionally invest as part of a consortium if that is valuable for you. Looking forward to hearing more about your venture!

$100 to $50,000

United States > New York

Looking to make investment with reasonably active involvement in the management of the company - with exists in 2-5 years. Debt or Equity financing options exist. I have and am starting to invest in few different technology business with varying degrees of management involvement. Have started, built and successfuly sold technology and services business as well as heading and growing large global technology services and product development organizations for multi-national company. Have executed several acquisitions and managed mergers of organizations and companies. Am a private investor in the process of establishing a small group which will provide us more capital and deeper management talent.

$25,000 to $1,000,000

United States > Iowa

Short-term loans 6 months up to 4 years. Asset based lending, Invoice Factoring and Hard Money loans.

$5,000 to $900,000