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

50 year old real estate investor and REALTOR in Washtenaw County, Michigan currently owning 30+ single family investment (rental, flip and land contract) properties. 25+ years experience in real estate investing including 100+ properties owned over the years and 1,000+ sales as a REALTOR. Engineering Degree from the University of Michigan. Looking to expand my investments past real estate into the services industries. Prefer to have advisory or silent involvement, but could be hands-on if necessary.

$1,000 to $500,000

United States > Michigan

I am a successful business woman that believes anyone that puts hard work in should have a chance at success and if I may be able to help with a small loan I would like to be that person. Each loan will be an investment on my behalf.

$5,000 to $50,000

United States > Michigan

Founder and operator of successful consulting firm. Wanting to invest financial and potentially sweat equity in a sound business model and an industry that interests me.

$100,000 to $500,000

United States > Michigan

Metro Detroit investor looking to grow portfolio with successful entrepreneurs. Business owner in food and beverage industry and operations experience. Willing to consider both silent or advisory roles.

$1 to $100,000

United States > Michigan

I was coached at a young age by my father, who owned several different companies. I learned the ins and outs of business growth and management and built a million-dollar company at age 22. Also had a successful career in corporate America. Would like to help entrepreneurs achieve similar results.

$50,000 to $1,000,000

United States > Michigan

Salutations, I am an individual investor who is also a part of an investment group. My experience involves consulting, investment in the markets (stock, option, commodities, and currencies). Trained in Import/Export trading, global/macro economics, business consulting, quantitative analysis of the stock market, and community/urban development/planning analysis. 80:20 ratio of silent to hands-on/advisory.

$250 to $15,000

United States > Michigan

Currently working in healthcare and real estate. Looking to be either active or silent.

$1,000 to $50,000

United States > Michigan

33 Year old married professional who works in the finance and business planning field. I hold a MBA and have made small (under $50k) investments with success. I prefer to be a completely silent partner and invest with a group.

$1,000 to $50,000