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

hard working entrepreneur involved in real estate and logistics looking for new opportunities

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

United States > New York

I'm in the trucking business. Looking for the right business and person to mentor and invest in.

$0 to $200,000

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 > New York

Knowledgeable, advisory in REAL ESTATE, EQUITY, FUNDING, PRIVATE FUNDING

$1,000 to $100,000,000

United States > Arkansas

Investment Criteria While the merits of each investment will vary, we evaluate your venture according to the following criteria. Management Team We look for teams of high-quality entrepreneurs with a track record of leadership and performance, either in the company's specific industry or in prior entrepreneurial ventures. We also look at your team's passion for and commitment to the new business idea, and your ability to inspire confidence among future stakeholders, including employees, potential customers, and investors. As we will be working together as partners, your team's credibility is essential. In addition, your team must be open to and comfortable with receiving input provided by angel investors. Market Opportunity We invest in solutions that address major problems for significantly large target markets. Your company must demonstrate a strategy to claim significant share of this market.

$100,000 to $600,000,000

United States > Florida

Young entrepreneur originally from Morocco and educated in the US willing to invest in various projects.

$25,000 to $1,000,000

United States > Georgia

Earned an MBA from the Kellogg School of Management at Northwestern University and a BA in Economics and American Studies at the University of Richmond in Virginia. brings over 10 years of experience in healthcare operations and private equity investing. Our background includes oversight of Strategic Planning, Corporate Development and Sales & Marketing as the company grew. Our principal investment experience includes more than 50 completed transactions representing over $1.3 billion of equity capital.

$10,000 to $10,000,000

United States > Washington D.C.

market place solutions and strong ethics

$10,000,000 to $200,000,000