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 > Illinois

I exclusively seek different companies to inject capital into to help fund. I am part of a institutional investment group/accredited investors that actively seeks projects to inject capital into for an equity portion of their company. The range is from $500k to $5M+ There is no particular industry that is favored when it comes to funding. The investment group have no geography limits,as the group recently opened offices in Sweden even though they are located in the United States.

$500,000 to $5,000,000

United States > New Jersey

I have been an entrepreneur in sales and marketing all my life. I would like to consider my skill set as the ability to understand the sales process and to bring products to market. I've worn many hats from my experiences starting and selling businesses. My first start up was a residential solar panel company. We achieve revenues of seven figures in two years and expanded nation wide covering markets in AZ, NJ, MA, & MO. I have recently sold my shares in the company and have been investing in tech start ups. One of the tech start ups that I'm currently invested in is called HireBench which automates the hiring process. I am looking to invest in businesses that are in the start up stage and have their MVP and PMF figured out.

$1,000 to $50,000

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 > Washington

I have a varied educational background (BS and MS Computer Science and MBA) so I can help navigate between technology and business. I also have experience working as a software developer and as a product manager for a large online retailer. Admittedly, I am just starting out as an investor, but with my background I bring real insight to the table. My involvement would depend on the pedigree of the entrepreneur and their preference. However, at this stage in my investing career I feel I can best aid an entrepreneur in an advisory capacity. I am married with no children. We live well below our means and have a decent amount of disposable income. We invest in the stock market and would like to invest in real people who have passion, intelligence, and a track record of success. I reside in Washington state but am open to investments anywhere in the continental United States.

$1,000 to $30,000

United States > Massachusetts

Scientific background, managerial expertise. 63 years old. Married. Master degree in Biological Sciences. Master degree in Internet Management. My work experience is mostly related to pharmaceutical business. I started working in the research labs of an Italian pharmaceutical company. Then I spent a three years working as quality control and manufacturing manager of a American pharmaceutical american company. After that I move to international business development of a pharmaceutical Swiss company. I created the first plant cloning laboratory in a South American country. I would like to be involved directly in a start up or be a silent partner if requested.

$10,000 to $100,000

United States > New York

I HAVE DONE OVER 65 DIRECT INVESTMENT CLOSING, FROM POWER PLANT DEVELOPMENT, TO REAL ESTATE AND HIGH-RISE BUILDINGS ALL OVER THE WORLD. I HAVE ALSO SERVED AS A CONSULTANT TO MANY INVESTMENT DEALS.

$5,000,000 to $9,000,000,000

United States > Florida

I am trying to find good ideas to invest in if you can show me how to make a profit. I will help as much as I possibly can. I love helping other entrepreneurs. I am an individual investor that will do as much as I possibly can to help as long as I know what needs to get done.

$10,000 to $50,000

United States > New York

Seeking asset backed opportunities with personal guarantees. Business models should include proven track record of revenue streams with break even or profitable status. No start ups unless substantial assets are pledged that have a liquid market.

$50,000 to $1,000,000