Entrepreneur - Business Plan Tips

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 > Virginia

Seeking profitable investment opportunities with proven documents and financial documentation.

$50,000 to $100,000

United States > Georgia

I'm a private investor

$2,000 to $10,000,000

United States > California

investing in good growth business

$100,000 to $500,000

United States > Washington D.C.

Hello, I have my Executive summary in a PDF Form..Is there an E-mail address that I can send it to.. Thanks Much

$2,000,000 to $5,000,000

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 > Illinois

I have 15 years of real estate development experience , Ten years of financial enhancement experience and project funding I'm direct to a large hedge fund that has been in business for over forty years I'm a direct rep to a program manager of a provide placement program (PPP) I have 19 years experience in the real estate tax field and now currently seeking good project to fund .

$5,000,000 to $10,000,000

United States > South Carolina

Have been in the private equity and venture capital investing business for the last 12 years. Having invested in over 50+ other private equity funds and made direct investments in over 150+ businesses, I have seen a wide variety of industry segments, investment niches, and am very open to various vertical market focuses. If a transaction is too large, I many times can arrange a syndication to accomplish the needed financing as well. My primary objective or focus is North America.

$100,000 to $2,500,000

United States > Georgia

I am just starting out in private investing. I have been in the manufacturing industry for 18 years. Looking to have an equity stake in a business or project.

$15,000 to $100,000,000

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