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

Attorney established in NYC business seeking to invest in interesting projects with the potential for growth. Willing to be hands on if required or desired.

$25,000 to $150,000

United States > New York

39 year old, married, based in Tribeca, Manhattan. Worked as an institutional investment broker for 11 yrs then as a trader for a big hedge fund / family office for the last 7 yrs. BSc in Business Administration and MSc in Capital Markets. Would like to change career, using the personal wealth that's currently invested in multiple funds, and grow the business together.

$1 to $250,000

United States > Texas

20+ years investment experience, Managing Principal of FINRA registered BD specializing in PE investments. We look for co. seeking $1-$10 million in financing, we will provide accredited investors. At this time we seek, technology, medical co. for investment. Not opposed to looking at other industries as well.

$1,000,000 to $10,000,000

Hungary > Budapest

stated as investment banker, became private equity investor and finally angel investor mainly active in media-technology industries with European background, moving to the US

$1,000 to $50,000

United States > Texas

Growing company's merger, JV opportunity has been sought. Financial, Former C executive of three corporations.

$40,000,000 to $99,900,000

United States > New York

Venture Capital professional with entrepreneurial skills and experience, launched 5 companies within past 15 years. Looking to support early stage ventures that are technically interesting and have enthusiastic leaders.

$50,000 to $2,000,000

United States > Texas

Self made businessman. Allot of experience in real estate and online businesses. From California and living in Texas currently .Currently working on a renewable energy project that is showing allot of potential.

$25,000 to $200,000

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