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 Jersey

I am new to the business and getting the hang of it. I have closed one deal about a month ago, and looking to close more for the coming year. I do have a partner she is a Realtor/Investor/Mortgagor. We are looking to Wholesale deals, REO buyrers, We can get the properties, but looking for serious buyers that wolud like to buy, and move on to the next project. Need help with funding deals to either fix the property hold or flip

$10,000 to $25,000

United States > California

Senior Vice President Investment; Master degree, in London,U.K. Real Estate in NYC, and Finance in Beverly Hills; We finance projects in any industry with a strong executive summary; Collateral providers,and investors in hotels and hospitality; Currently we have top qualified clients who need finance of $10M and above; We review their profile and e.s. while provide to them the right guarantees to get the finance, We also encourage bankers and funds who need collateral for their clients to complete deals, we can do so, after they submit the POF and the approval for the principals. Loyalty,integrity,with fast service are some of our principals.

$10,000,000 to $300,000,000

United States > Michigan

RCR is a leading finance and investment firm providing a complete line of commercial financing options for every need from start-up to global conglomerates: - Commercial Real Estate Finance - Construction / Project Funding Finance - Account Receivable Finance - Purchase Order Finance - Inventory Finance - Commercial Equipment Lease Finance - Import/Export Commodity Trade Finance - Commodity Sales And Services - Specialized Finance

$10,000 to $100,000,000

United States > New York

Young professional currently working in the insurance industry. Recent graduate with a BA in psychology with valuable experience in marketing and promotions.

$500 to $5,000

United States > New York

New York lawyer in late 20s specializing in litigation. Looking to invest in a Manhattan nightclub or bar opening or remodeling by summer 2011. Ideally, the venue will be small-scale (300 capacity or less) and have an original or emerging concept. Willing to invest up to $100k in exchange for a percentage of ownership in venue.

$10,000 to $100,000

United States > Virginia

Our pool of Private, Non-Bank, and Non-Traditional lenders consists of a flexible bridge and equity providers who are eager to provide lending solutions for financially sound investment projects. Our private lenders are our valuable asset and have taken years to collaborate. We presently have over 260 thousand private lenders in various sectors/industries. Each private lender in our database has its own unique lending parameters, based on the market, time, project, etc. Simple 3-Step Process -- (1) Complete our intake form as per your funding level(s). That's it, your job is done! (2) We take it from here. We push your initial project to specific private lenders in your space. Our goal is to gain "interest" from private lenders in your project. (3) When a private lender shows interest, the private lender will contact you directly so you can conduct direct communication.

$1,000 to $9,999,999,999

United States > Indiana

We work with Investment Bankers who offer up to 100% financing for all types of Commercial Equity and Debt Funding (including Start-Up).

$1,000,000 to $400,000,000

United States > New Jersey

Our investment model is for acquisition and development only and not a vehicle for the funding of fully developed properties. It is required that the borrower is the titled owner of the property or has control of the property by purchase contract and that all entitlements have been acquired and development can be commenced at opening of the loan. That is, all engineering plans, construction drawings, permits and approvals and budgets are completed, therefore the project is "Shovel Ready". The guidelines are as follows: Term: 60 months. Rate : 8.25% (subject to underwriting and market). Minimum Loan Amount: $150,000,000. LTC: 100% Recourse: Non-Recourse to Principals after construction phase. Disbursements: Loan disbursed to escrow account in equal disbursements over the first 12, 24 or 36 months of the loan. Gross Profit Margin: 30% or better after debt, and average annual return greater than 15% is required.

$150,000,000 to $500,000,000