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 York

Dear Sir/Madame, I am a representative of the Russian investing company, which is looking for investment opportunities in the USA (NY region is desirable). We are willing to invest from USD 20 to 200 million. We have some requirements for the prospective invest-project: 1) We will buy a controlling stake (up to 85%). At least 15% of the project must be owned by the proprietor (possessor) of the project. 2) Line of business - any. However, construction projects would be the preference. 3) There should exist a detailed business plan, which will be assessed by our experts. 4) Cost recovery (return) period is about 6 years. Should you have any questions feel free to contact me via e-mail. Kind regards, Alexey

$10,000,000 to $200,000,000

United States > Pennsylvania

We are one of the oldest seed funding organization. We are venture capital firm investing in early-stage companies. We fund entrepreneurs with the energy, vision, experience, and desire to build great companies. We are looking for distressed, pre-foreclosure, foreclosure, or bank workout, condo and town home projects. Others (hotels, etc.) on a review basis. We will consider large projects nationwide. MUST HAVE ASSETS, not interested in “preconstruction” “no infrastructure” deals. Will consider partial construction, none sold OK. NO SF RESIDENTIAL We are fully funded to acquire millions in distressed commercial assets. Looking for distressed commercial RE Projects Nationwide We've seeded over 200 companies in our history with 40+ profitable M&A exits and 9 Nasdaq IPOs. We have founded companies such as Symantec, Logitech, and National Semiconductor and been senior executives at the likes of Sun Microsystems, Hewlett Packard.

$1,000,000 to $70,000,000

United States > New York

Private Investor

$1 to $10,000,000

United States > North Carolina

I am looking for a company that I can reach the highest return on my investment.

$50,000 to $500,000

United States > Pennsylvania

Looking to purchase high end real estate. Also looking to finance large real estate transactions.

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

United States > Colorado

I invest personally in some ventures and I may refer (at no cost o the entrepreneur) them to company in California with greater resources. My background is in accounting (so your projections should demonstrate your solid understanding of the economics of your business and how it will succeed), the financial industry (banking and mortgage) and consulting. I have started a company from the ground up (been through the PPM process a few times) and been a part of a team that has grown a company rapidly and sustained that growth over years. I've been on both sides of mergers and acquisitions. I've experienced what it takes to succeed and managed through some difficult situations. I'm looking for companies with a strong core team, proven track record or can provide proof of concept (orders, contracts, LOI's, prototypes, etc) and have a innovative product/solution/approach that has tremendous upside potential. You need to be beyond the "idea" stage.

$500,000 to $5,000,000

United States > Pennsylvania

I represent an angel investor who is interested in expanding his investment portfolio. To date, he has funded projects throughout the United States in biotechnology, manufacturing, software development, IT, energy, health and pharmaceuticals, real estate, nd the gaming industry. He requires a solid 3-5 year exit strategy with a healthy return. His contacts in almost every industry are extensive. The process is simple: once you have my email: 1. contact me through email stating your interest and your project; 2. send me a business plan which should include financials, exit strategy and a bio

$100,000 to $5,000,000

United States > Connecticut

Multi-talented executive and entrepreneur with impressive history building and growing multi-unit locations from the ground-up, opening new revenue streams and profit centers, and maximizing bottom- lines for companies and clients in diverse industries. Developed and implemented, and directed high-impact strategic plans. Penetrated and expanded within new and existing markets, creating cutting edge multimedia sales and marketing campaigns. Provided field coaching and support to managers and staff and ensured compliance and execution of sales initiatives as well as company policies and procedures. Optimize cross-functional operations, identifying and capitalizing on strengths, and uncovering and repairing weaknesses. Assemble, mentor, and lead world class teams. Developed business and marketing plans and budgets. Spearheaded the financial team in preparation of budgets and financial statements.

$100,000 to $200,000