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 > Washington

Working on behalf of my contacts to bring them deals that fit their investment Criteria. I have build a network that I would like to bring potential break though investments to the table.

$10,000,000 to $800,000,000

United States > Florida

I have been in the real-estate investment business for more than twenty years.

$25,000 to $50,000,000

United States > Texas

I am willing to be an angel investor! I enjoy making new contacts and being apart of succeful projects. I have the capital to invest, if the venture appears to be lucrative and love being apart of exciting turn arounds! I am always looking to help new business get off the ground, and turn a profit in the process!

$10,000 to $1,000,000

Belgium > Heverlee

Business mostly in real estate in Belgium, Europe. I am US citizen by birth, 54 years old and ready to Invest in my country of birth. I would like to be involved in the business I will invest.

$100,000 to $300,000

Georgia > Tbilisi

Seasoned executive with 20+ years of experience in finance industry. While living in Georgia, I'm Looking for opportunities for investment outside the country. I have MBA degree from IE Business School. Looking forward to receive interesting proposals.

$50,000 to $200,000

United States > North Carolina

Former C-Level Executive with a 15 year pro-active career within the telecommunication and financial industry. I have access to investment capital through Private and Group funding Former Chief Financial Officer and Director of Operations within the telecommunications and financial industries. Diverse educational and military background, including a concentration in accounting and served as a member of the Security Police with the United States Air Force.

$1 to $1,000,000

United States > New York

A Successful Entrepreneur seeking to diversify and expand my Investment. Am a graduate of Harvard Business School and also holds a Doctorate degree in Psychology.

$25,000 to $100,000,000

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.