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 > Iowa

Ask me to send you my résumé.

$50,000 to $500,000

United States > New York

The firm I represent is looking for asset heavy opportunities through which a mix of asset backed financing and some equity could be provided. We're flexible and typically stay out of management's way allowing them to run the business without interference. We prefer investments in the U.S. and Western Europe but will consider other geographic areas. I personally have 10 years of investment banking and financial advisory experience with a primary focus on middle market activities.

$10,000,000 to $150,000,000

United States > New York

I can work as individual investor, and can also represent a group of investors. My Professional background is in management consulting, investment. Interested in $10k-$1mn equity investment projects in services (ideally financial services, ideally online)

$10,000 to $1,000,000

United States > Texas

I'm 34 years old, married to a wonderfully talented and ambitious woman, and currently live in Texas. Professionally, I'm an AF Officer, founder of an investment company, and angel investor. Academically, I have a bachelors in astronautical engineering and am finishing my masters in applied financial economics. I'm looking to invest in companies that want someone philosophically motivated, deeply dedicated, and looking to positively change the world. As an individual investor, I can be as hands on or off as needed and can leverage my personal network and experiences to achieve success.

$5,000 to $50,000

United States > North Carolina

I am a entrepreneur. I invested a high-tech manufacturing company in China with other partners in 2002. I am one of the directors to run this company and it is very successful. It has facilities in China, USA , UK and Brazil with totally 400 employees. I want to find some new business to invest now. Before I invested the manufacturing company, I have been in IT and network business for 8 years. My preference for the next investment is IT and internet. But I can also invest to other industry.

$200,000 to $1,000,000

United States > California

Over the past decade I have been involved in 13 Real Estate development projects

$50,000 to $300,000

United States > Kentucky

I have over 20 years of investment experience having worked for 2 wall street firms.

$100,000 to $50,000,000

United Kingdom > London

We are an agent for overseas investors who are looking for projects in which they can be JV partners, with them holding 51-60% of the equity, and introduce the entire funding needed. Please note that my clients will not work alongside any other funders or bankers. Initially, you should email us an executive summary, P&L and cashflow. If they are interested, they will ask for a UK meeting to discuss the project and present their terms of business. If it is decided to proceed subsequently, the Heads of Agreement are signed, and a contribution to the arrangement fee is payable to my clients. This sum is refunded when the funding is drawn down. The timescale from signature to drawdown of funds whilst my clients carry out their due diligence and amendment of your business plan is 20-22 weeks. I look forward to hearing from you if you would like me to present your project to my clients.

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