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

The firm I represent is looking for asset heavy opportunities through which a mix of asset backed financing and some equity could be provided. We're flexible and typically stay out of management's way allowing them to run the business without interference. We prefer investments in the U.S. and Western Europe but will consider other geographic areas. I personally have 10 years of investment banking and financial advisory experience with a primary focus on middle market activities.

$10,000,000 to $150,000,000

United States > Colorado

I will invest in any business that makes sense and both parties will profit. I have more resources and funds available than I can find businesses willing to or approve to fund. My involvement in your company is strictly to fund you with capital so you can run an efficient business. You have built the company not me. I just want to be the one that helps you get to that next level.

$1,000,000 to $2,000,000

United States > MARCO ISLAND , FL

I AM NEXT TO BUYER'S AND SELLER'S REPS. I DEAL WITH, PETROLEUM PRODUCTS, REO'S, BANK GUARATEE'S, AND MEDIUM TERM NOTES

$100,000 to $50,000,000

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 > Washington D.C.

Lawyer in Washington, DC software analysis Vice-President Capital Management (CFTC Registration Hedge Fund), VP US Securities and Exchange Commission, Special Counsel

$50,000 to $1,500,000

United States > South Carolina

I am a private investor, with a strong background in retail and real estate. I am interested in investing in companies that show strong potential with clear ideas about the future. Some of my particular interest are companies involved in "sustainable" "green" "organic" and related fields.

$10,000 to $250,000

United States > New York

I am a mid 60 year old retired financial services executive with 30+ years experience in finance as a CFO, strategic planning, M&A, risk and pricing with an MBA in international finance. I currently volunteer as a small business mentor and also mentor mid level executives. I sit on the board of a non-profit foundation and an elementary school as well as a financially focused advisory Council. My preference is to play an advisory role with hands on involvement as needed. I am an individual investor who is keen to help small businesses that drive our economy succeed.

$10,000 to $50,000

United States > New York

Experienced merchant banker. Talented at taking companies public in a number of industries.

$50,000 to $1,000,000