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

I am the Founder and CEO of an angel investment vehicle focused on seed and early stage investments. My previous experience includes over 10+ years in the financial industry acting as a Chief Administrative Officer for multi-billion dollar private equity firms and hedge funds, a Director of Recruiting, an Investment Analyst, and an Investment Banker. Most recently, I was the first employee in a multi-billion dollar private equity firm where I created numerous operational areas (human resources, recruiting, compliance, employee agreements, insurance coverage, healthcare/benefits platforms, etc.), established global offices (NY, HK, London, Mumbai), and created the firm's Intranet and website.

$10,000 to $50,000

United States > California

I personally have 28 years of experience in commercial finance. Currently my flagship product is a funding strategy created by the SEC in 1982; the Reg D Private Placement. This strategy has been extremely successful over the years. It is estimated that over $40 million a day is raised for entrepreneurs using this structure. Many who seek funding make the mistake of believing a business plan is all that is needed. Wrong! Sophisticated investors expect that companies seeking financing are savvy enough to have a complete prospectus that respects state and federal securities laws, as well as a well-thought-out business plan. I will be happy to review your proposal free of obligation or cost.

$100,000 to $15,000,000

United States > New York

We are looking for investment deals.

$100,000 to $500,000

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

I'm a no nonsense type guy. What you see is what you get. I believe in competition, as it lets everyone be their best and either sink or swim. I live in New York and am looking to invest in a business. If you have something worth my time, don't hesitate to send me a message and we can set up a meeting.

$1,000 to $100,000

United States > Arizona

I work directly with private individuals who have been investing in private funds for over 20 years. We fund almost any type of project and/or business. Terms and investments are on a case by case basis, and may be syndicated amongst our investment partners.

$10,000,000 to $9,000,000,000

United States > Florida

For more than 25 years, our Investment Association has provided the highest quality of investment advice and practical financial equity solutions to the emerging firm. Our interests lie in not only investments in high-tech firms but low-tech developing firms as well. To be an attractive investment vehicle to our Association the investment targets must be able to promise and deliver a rate of return that is more attractive than those available in markets for publicly traded stocks and other securities.

$50,000 to $2,500,000

United States > Connecticut

My investments have been in the traditional outlets of privately held companies and real estate. Have been in advertising for 27 years as a senior manager in large companies and a start-up. My partner and I are new angel investors who would like to participate in the development of a new or established business.

$10,000 to $250,000