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 > Pennsylvania

Business owner for 25 years, have experience in payroll, marketing, accounting, Business relations.

$25,000 to $100,000,000

United States > California

Recent: July 2006 – Present, Managing Director of a Capital Group We provide a select array of debt financing solutions critical to the growth of middle-market and emerging growth companies looking to leverage their cash and equity to acquire debt for equipment or growth capital. We understand the relation between your company's cash and equity, where the key to success is conserving both and having access to additional sources of capital for capital expenditures. The key to our success is having the resources, the insight and the talent to extract the highest value from your business assets and being able to leverage them to facilitate a loan to achieve maximum growth and profitability.

$5,000 to $10,000,000

United States > Texas

Working on behalf of Attorney at Law facilitating financial transactions,

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

United States > New York

I am a media and web producer just starting out as a private investor looking for investment opportunities that could give a me a good return or open up the doors for a new career as a business owner/partner.

$100,000 to $2,000,000

United States > California

Spent 20 year investing in cellular, MMDS and SMR phone companies

$45,000 to $400,000

United States > Pennsylvania

Semi - retired, looking for a partner to invest. Honest and straight forward, looking for same. Return on equity is critical.

$100,000 to $250,000

United States > New Jersey

I am young, enthusiastic individual investor in the North Jersey/NYC area. I graduated from business school in 2010 and I am currently working as a corporate restructuring consultant for a mid size firm in NYC which specializes in providing advisory services to distressed companies, lender groups/committees, etc., inside and outside of bankruptcy across various industries (majority of my experience is in real estate). I have technical financial skill set in financial modeling, valuation (DCF), accounting and auditing. I have passed the CPA (Certified Public Accountant) and CIRA (Certified Insolvency and Restructuring Advisor) exams and I am awaiting certain education/professional requirements to be certified. I have no entrepreneurial investment experience but I am trying to change that as I learn quickly and could add-value to any team. I would plan on being hands off/silent with a small advisory role and on any technical financial/accounting issues I could help with.

$0 to $25,000

United States > California

We are a business consulting and private equity investment company seeking to partner with companies who desire to expand in the emerging global economy in the areas of; technology, renewable energy, films, humanitarian efforts, rebuilding impoverished communities, facilitating medical care and supplies. I became a successful Venture Capital Investment Broker selling private common stock to accredited investors nationwide in West Los Angeles, Ca. I raised over 100 million dollars in investment capital funding contributing to the success of several national and international corps including: Vanna White’s Toothpaste infomercials ($5.0M raised), Joy Mangano’s The Miracle Mop Infomercial (aired HSN $4.5M raised), La Toya Jackson Dateline 900 Infomercial ($4.0M raised), emusic.com ($2M raised, first company offering music download) Exxon/Mobile Oil and gas drilling (10M)

$5,000,000 to $20,000,000