Michigan 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.

Michigan Investors

United States > Michigan

Private equity consultant passionate about entrepreneurship. Would love to invest in the right company/entrepreneur.

$10,000 to $50,000

United States > Michigan

Individual investor. I currently work in supply chain & logistics within a manufacturing environment, and I've held a variety of other roles in purchasing and sales in the past. I also currently own a couple rental properties as well as a small residential cleaning business. I have a B.B.A. - Supply Chain and am currently enrolled in an M.B.A. program. I'm a young professional with the entrepreneurial looking for my next project. I'm open to being as involved as necessary and putting in some work, or a silent partner.

$100,000 to $5,000,000

United States > Michigan

I am the founder and Chairman of a venture group. I am a former professional hockey player, venture capitalist and renowned entrepreneur. An early entrant to the cleantech market, our efforts have garnered global recognition his companies awards include Time Magazine's "Best Inventions 2005," and was awarded the Wall Street Journal's "Technology Innovator" and the World Economic Forum's "Technology Pioneer" awards that same year. In early 2007, he was named a "Young Global Leader" by the Forum. Repeated successes has been acknowledged by the global business community. His insight has been sought by such publications as the New York Times, Time Magazine, Inc., Red Herring and the Wall Street Journal. In addition, he is a regular attendee of the World Economic Forum. He holds a bachelor's degree in computer science from Brandon University, in Brandon, Manitoba.

$50,000 to $10,000,000

United States > Michigan

Young aggressive physician looking to invest and build further. Plenty of medical experience, but would like to link with developers in real estate and home flipping projects.

$10,000 to $100,000

United States > Michigan

RCR is a leading finance and investment firm providing a complete line of commercial financing options for every need from start-up to global conglomerates: - Commercial Real Estate Finance - Construction / Project Funding Finance - Account Receivable Finance - Purchase Order Finance - Inventory Finance - Commercial Equipment Lease Finance - Import/Export Commodity Trade Finance - Commodity Sales And Services - Specialized Finance

$10,000 to $100,000,000

United States > Michigan

I'm a individual investor and young professional in the automotive industry looking to invest in opportunities within the state of Michigan. My educational background includes an undergrad degree in electrical engineering and a MBA from Lawrence Technological University. In regards to involvement in any opportunities, the most I would ask for is advisory but in most cases I would be silent.

$1,000 to $50,000

United States > Michigan

Former banker in VC Bank. Went on to work in the recreational cannabis industry in Washington. Currently live in Michigan as a real estate and cannabis investor. Looking for a new cannabis related venture in the new Michigan markets. Very selective investor.

$5,000 to $40,000

United States > Michigan

I am 52, married (24 years), 2 sons 22/17 yo, live in Southeast MI area. Director of Business Development for a regulatory compliance consulting company for the pharmaceutical medical device and biologics industry. 25+ years of successful business ownership operations sales marketing and business development. 2 advanced degrees in life sciences. Can be hands on or silent partner/investor depending on situation. Individual investor with others interested. Specifically interested in the medical marijuana industries i.e. grows, processors, dispensaries must have current license with a municipality and have application in process for State of Michigan. Must be working with an attorney with MMJ experience. Must have a location secured. Documented MMJ experience required i.e. caregiver, dispensary owner or other MMJ experience.

$25,000 to $200,000