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

31 year old single male from Long Island New York. Currently work as a busy Private Client Associate at a retail banking company. Bachelors degree in Economics from Syracuse University. Current student at a graduate program for finance. I have a diversified equity fund investment account as well as an investment property. In search of a silent investment opportunity that resonates with me, and a venture that I can really get excited about.

$10,000 to $45,000

United States > New York

I am in advanced age group, married, live in New York city, USA. My profession is in city government and engineering. I have experience working as Engineer and public servant. I have spent my years of service as design,field and project Engineer. My anticipated involvement will be advisory at a minimum level. I have experience in evaluating and decision making. I am an eager investor.

$400,000 to $900,000

United States > New York

To Whom It May Concern: I worked for international media companies for 24 years - had positions as Chairman, President, COO and EVP. Started a few companies in between. At this stage of my life I want to put my experience and capital to good use. I am interested in investing as well as active participation in businesses. Having 'skin in the game' makes a lot of sense. I am affiliated with a group of experienced angel investors and turnaround specialists in Chicago. We have a team of people who can assist with various challenges.

$10,000 to $250,000

United States > New Jersey

I'm a 42 year old male with three children. Worked for Morgan Stanley & Lehman Brothers for 15 years managing all aspects of operations. Marketing & sales is my background. I'm looking for a partner I can invest in gaining equity in an existing business. I would like to dig in to all areas of operations and staffing. Policies / procedures etc... I can turn things around very quickly!

$1,000 to $100,000

United States > Florida

I work as an independent broker in Cape Coral, Florida. We provide funding for all types of businesses and various circumstances.

$250,000 to $50,000,000

United States > Utah

Hello I am looking to help move along companies and promote local growth. I have spent most of my life in construction or sales and am looking to make good passive income.

$1 to $2,000

United States > New Jersey

I'm an individual (single male) investor living close to NYC. I currently own and operate a consulting business of my own in the technology sector. I'm interested in investing in interesting business proposals that either fit a unique niche or after analysis and market research have a high probability of success. I have investment experience in real estate and the equity markets. I can also potentially partner with other investors. I would usually prefer an advisory or hands off role but depending on the business may be interested in something further.

$1 to $1,000,000

United States > Iowa

Short-term loans 6 months up to 4 years. Asset based lending, Invoice Factoring and Hard Money loans.

$5,000 to $900,000