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

Stephen is an investment professional and corporate turnaround specialist. He is a Director at an investment firm with holdings both domestically and internationally in real estate, transportation, energy, and luxury services. Additionally, he is an adjunct lecturer at the City University of New York. Previously, he lead the Emerging Markets Investment Banking team at Oppenheimer of North America, where the firm advised on $6 billion in aggregate transactions. In particular, he worked closely with Foreign Direct Investments to accelerate economic growth in the Central Europe, MENA, and Asia regions. Prior to Oppenheimer, Stephen was a Vice President at J.P. Morgan and before that, he was a Vice President at Bear Stearns. Stephen was educated at the NYU School of International Business & Finance and the NYU Schack Institute of Real Estate. He holds a Bachelor of Science from Brown University.

$1 to $20,000,000

United States > Tennessee

We are doing private hard money lending in GA, FLA, TN, SC, NC, MS, ARK with high rates with people with minor credit with equity also doing church financing in rural places when bank won't lend because of church are smaller. Been managing partner for 23 yrs in private mortgage banking also represent a private hard money group.

$25,000 to $40,000

United States > Georgia

Certified Builder, Executive Producer, Entertainment Investment Liaison, Private investor with Personal Network of Friends

$1,000,000 to $20,000,000

United States > Texas

Currently residing in Texas and looking to diversify my investment portfolio in the oil or oil related industry.

$1 to $25,000

United States > California

Over 15 years of experience in investing exclusively or a small percentage of businesses with a range of short and or a long-term perspective. Invested in companies that offer strong growth potential and a promising strategic position on their respective markets. Invested for the medium and long term, in order to develop the company's potential to the fullest and thus maximize the return. Increase the value of investments by providing the capital, the expertise, the network and the experience necessary to accelerate the company's growth. Actively work with the company's management by contributing experience and business savvy gained from involvement with other companies with similar growth challenges. • Negotiate new business ventures, start-up ventures, and collapsing ventures; • Mitigate the risk of venture investing; • Develop portfolio of companies in a single venture fund; • Assist in the development of new products or services; • Add value to the company through active participation; • Stimulate growth through active strategic support and constructive involvement; • Screen the technical and business merits of the proposed company; • Build realistic strategic vision of the company's future growth, and create sound management techniques.

$100 to $5,000,000

United States > Maryland

Private investor seeking reasonable and profitable investment

$5,000 to $25,000

United States > New York

I work at a big four accounting firm in NYC in the audit department. I have saved up some money and I am now looking to generate a return on it. I have no investing experience.

$5,000 to $40,000

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