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 > South Carolina

Have been in the private equity and venture capital investing business for the last 12 years. Having invested in over 50+ other private equity funds and made direct investments in over 150+ businesses, I have seen a wide variety of industry segments, investment niches, and am very open to various vertical market focuses. If a transaction is too large, I many times can arrange a syndication to accomplish the needed financing as well. My primary objective or focus is North America.

$100,000 to $2,500,000

United States > New York

Private Investor looking for middle-stage company with solid background and growth potential

$0 to $1,000,000

United States > Virginia

Our private investment group funds real estate developments, acquisition, permanent financing and short-term financing for projects throughout the US and abroad. We also help farmers purchase or refinance income-producing property at high ltv.

$1,000,000 to $300,000,000

United States > Illinois

Private investor. Background in corporate/securities law. Seeking passive investment opportunities.

$10,000 to $100,000

United States > Virginia

Managing Director of V*** Investment Partnership and a graduate of Virginia Military Institute. My professional background has been primarily in banking, with a short stint with the government as a Special Assistant to the Director of Community Reinvestment of the Federal Home Loan Bank Board. I have owned and operated residential and commercial financing operations since 1997, with a particular focus on creative commercial lending. Our market is worldwide, and we specialize in customizing financing packages that most banking institutions could not handle, or even have the imagination to properly structure. We accept only a limited number of clients per business quarter, to allow personal attention to your project.

$100,000 to $100,000,000

United States > New York

With access to dozens of lenders, investors and programs, AMBS has the ability to provide funds for just about any business. Though we do work in the investor space we prefer traditional loans/financing.

$20,000 to $100,000,000

United States > Connecticut

My experience includes corporate restructuring as an investment banker, trader and investor, Non-Investment grade/Private Equity Investment Banking, Commercial Lending and a Principal of a Registered Investment Advisor. I have served on the Boards of public and private companies in many capacities including Audit Committee Chairman, Executive Committee Chairman and Interim CEO. I am an SEC Qualified Financial Expert. My personal investments include distressed investments, start ups, private equity and diversified portfolios of debt instruments. My start up investments relate most closely to software developers with a SaaS bias. I also have investments in an Internet ad network, a radio broadcast/syndication company, a veterinary generic pharmaceuticals company, and an RFID/medical institution systems provider and consultant. I am a private investor and Investment Banker for Venture Capital companies and have raised capital for a number of companies.

$10,000 to $150,000

United States > Maryland

I am an experienced entrepreneur, investor and consultant with a great sense of what works for products, pricing, markets and customers. I have an equal level of interest in services businesses as I do in new product offerings.

$1,000 to $250,000