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 > Indiana

I am looking to help provide working capital to anyone who needs it. From $50,000 to 200,000,000

$50,000 to $200,000,000

United States > California

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

$45,000 to $400,000

United States > New York

have run my own online business for the past 4 years within the online marketing space.

$500 to $50,000

United States > California

I am a very experienced banker/financier that specializes in merging high growth private companies with public entities and invest or raise additional capital in that process. I invest $1 million or more in the initial process and continue to raise capital or invest as long as management performs according to their business plan. I do not have preference concerning the industry as I seek top quality management and do not get involved in the day to day operations. My role at all times is negotiating new financing and additional acquisitions.

$100,000 to $5,000,000

United States > New York

Married couple with high buisness interest seeking to get involved in fun buisness with people we enjoy working. Looking for a long term vision to build wealth.

$5,000 to $50,000

United States > Texas

Real estate investor specializing in student housing and college towns. Maintain real estate license in state of TX Private investor with current portfolio of approx 200 units. Specialize in Austin and College Station, TX markets Excellent track record and many industry connections.

$5,000 to $50,000

United States > New York

Thanks for reading this, and good luck in your search process. I currently work in private equity (lower middle market so I could be exposed to hundreds of smaller, everyday companies) and was a former McKinsey consultant. Prior to that, I studied economics at UChicago and was my own entrepreneur (although a business model reselling coffee beans was not a huge success admittedly!) I have extensive investing and operational experiences from analysis, strategic structuring, to just hands-down knocking on doors. Within my job I also handle legal, accounting, and debt-related contracts and topics. Passionate about partnering with strong entrepreneurs in many capacities: from advisory to full partner status, depending on what you need. Can additionally invest as part of a consortium if that is valuable for you. Looking forward to hearing more about your venture!

$100 to $50,000

United States > New York

I have seven years of investment experience across a variety of securities, from secured debt to equity, in both public and private companies. I hope to work with early stage companies seeking to disrupt a legacy industry. I am willing to engage in different levels of involvement throughout the process depending on need.

$0 to $50,000