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

Former business owner, sold business for profit. Looking to invest in new opportunities.

$5,000 to $50,000

United States > Michigan

Honest and Straightforward CLO Professional. Commercial Real Estate, Construction, Bridge Loans, Multifamily, Industrial, Office, Hotels, Retail, Storage, Business Loans, Equipment Loans, Invoice Financing, Factoring, Land Development, Debt Loans, Hotel Loans, International Loans, Manufacturing

$2,000,000 to $99,000,000

United States > Michigan

I have been an investment advisor for several years, I have also been involved in several different business ventures. I am looking to invest in different types of opportunities in Michigan. My background in Finance can offer some new businesses help in funding, and raising funds, as well as financial direction and advice.

$10,000 to $100,000

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

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

40 years old, currently VP of Sale at healthcare company. Responsibilities include multi-year growth strategy development and execution. Skilled in go-to-market strategy, company focus and goal setting, process improvement and sales strategy. Bachelors Degree. Experience investor. I have developed several playbooks including growth strategy, go-to-market, sales process and marketing staffing. Interest and advisory experience in Cannabis with several connections. Open to both silent but would prefer advisory and potentially hands on. Individual investor.

$500 to $50,000

United States > Michigan

I have hands-on experience as a learning consultant using Learning Management Systems. I started personally investing and looking for other companies and industries that suit my interests to enhance my portfolio.

$100 to $20,000

United States > Michigan

Former community bank president, 10 yrs experience as private investor/consultant. Now leads group of investors.

$10,000 to $200,000