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

36+ year IT professional nearing retirement, currently VP of Technology at a billion dollar construction management firm with ownership equity. Current investment experience is mainly Stocks, Mutual Funds, EFTs, and some Bonds, then of course all the various retirement accounts and company stock. Looking to retire at 60yo and will need mostly stability, but also looking to take some limited risks on higher risk/reward ventures if a solid opportunity presents itself.

$10,000 to $100,000

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

United States > Michigan

Working as an independent contractor for investment banks.

$10,000 to $50,000,000

United States > Michigan

Married. Battle Creek, MI. Bachelors - Consumer Goods. Experience: Kellog, Kraft Foods, Stryker Medical. Status: Individual Investor Involvement: Any. Have access to top producers in all areas. Marketing top 100 marketing executive. Analysts from major corporations.

$10,000 to $150,000

United States > Michigan

55 years old married man in the Detroit metro area. Currently have multiple successful businesses in the metro area. My current investments include restaurants & real estate.

$10,000 to $500,000

United States > Michigan

I have over 25 years of experience in investment banking, mergers and acquisitions, capital formation, venture capital and emerging company development. I began my investment- banking career in New York with the firm of Hornblower and Weeks. In 1974, I moved to Bache Stuart Halsey Inc. as vice-president of mergers and acquisitions. In 1979, I joined Asset Management Investments, a private venture capital firm, with $22 million under management. Since 1985, I have been involved with start-up companies, developing coherent and innovative financing strategies. He is an author and a frequent speaker for entrepreneurship forums and venture capital seminars. His experience as an entrepreneur/business owner, investment banker, and venture capitalist provides a unique and comprehensive perspective for VIP’s Portfolio investments and Investing Partners.

$500,000 to $5,000,000

United States > Michigan

CFO and minority shareholder of a family owned manufacturing business in Jackson, Michigan. Very interested in cash flowing and tax advantaged investments. I invest for myself, my family, and on behalf of an investor network. Experience with acquisitions of operating companies and real estate.

$25,000 to $250,000

United States > Michigan

I am a young professional interested in all investment opportunities.

$5,000 to $100,000