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

none

$10,000 to $100,000

United States > California

Private Investor

$0 to $15,000,000

United States > New York

I was one of the first employees of Micromuse Inc., a very successful start-up from the 1990's. Micromuse provided network management solutions and was eventually acquired by IBM. My role at Micromuse was VP of Sales and I was the key player in driving our sales into internet service providers, telcos and web hosting companies. I want to provide seed/angel investment funds into companies operating in any high tech field. Depending on the opportunity I am comfortable being either a passive investor or taking a more direct role.

$15,000 to $35,000

United States > New York

I'm 44 yrs of age. I am in the apparel manufacturing industry for quite some time. Looking for a unique business venture to invest in.

$5,000 to $150,000

United States > New York

Experience business owner and CEO. VAR for IBM 10 Years, Haute Couture Fashion House 17 years, Defense Contractor 8 Years. Past gross revenue range 1MM to 50MM - will consider any size. Interested in a hands on investment with a company who is in need of leadership and a cash infusion. Areas of expertise: finance, operations and growth. Individual investor. Reside NYC.

$100,000 to $300,000

United States > California

We are a business consulting and private equity investment company seeking to partner with companies who desire to expand in the emerging global economy in the areas of; technology, renewable energy, films, humanitarian efforts, rebuilding impoverished communities, facilitating medical care and supplies. I became a successful Venture Capital Investment Broker selling private common stock to accredited investors nationwide in West Los Angeles, Ca. I raised over 100 million dollars in investment capital funding contributing to the success of several national and international corps including: Vanna White’s Toothpaste infomercials ($5.0M raised), Joy Mangano’s The Miracle Mop Infomercial (aired HSN $4.5M raised), La Toya Jackson Dateline 900 Infomercial ($4.0M raised), emusic.com ($2M raised, first company offering music download) Exxon/Mobile Oil and gas drilling (10M)

$5,000,000 to $20,000,000

United States > Florida

I am a private investor and own several salons in Florida but I want more challenges

$50,000 to $100,000

United States > New York

Retired CEO of public medical device company Angel investor in private biotech company; 12x return over 6 years Founder and lead investor of medical device start-up based on IP which I found and licensed from a major research university

$25,000 to $100,000