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

Single male, located in Michigan. Currently work as a Firefighter and have experience in public service, transportation management, property management, and am a self taught home renovator. Hoping to collaborate on new business venture - open to explore many industries. Looking to serve day to day or as needed - silent partner is optional. Would prefer to be hands-on and have a mentor or someone willing to teach the ropes of the business.

$5,000 to $100,000

United States > Michigan

My partner and I seek to invest equity into established businesses. We invest our own capital. We seek to deploy Growth Equity Capital into well managed companies that need capital for growth or perpetuation purposes. We do seek to have majority control. We do not look to run our companies on a day to day basis because we seek to leverage existing management teams and help them grow. Our goal is to provide advisory support and to make major decisions (acquisitions, sale of company, etc). My background includes spending 30+ years in Commercial and Investment Banking. I have advised many families and many companies to help maximize their business opportunities.

$1,000,000 to $10,000,000

United States > Michigan

I represent a Venture Capital firm in Southern CA. We have access to many avenues of capital and our strategies are flexible. We look for companies with great growth potential, consider every company's individual situation, and adjust our approach accordingly.

$500,000 to $15,000,000

United States > Michigan

BSc (Computer Science) MBA Extensive experience as an entrepreneur. Have started companies from startup stage, to international franchising and publicly listed a US based franchise on the Frankfurt Exchange. Extensive experience in B2B and service based industries. Well versed with international business, different cultures and how to build businesses across borders. Dual citizen (Australian, United States). I am looking to be a part of a team to help run and build an established business that does not require "on-site" attendance. I am looking for something that I be involved in remotely. I am willing to travel internationally. So I am looking for active involvement and can also invest.

$20,000 to $100,000

United States > Michigan

I was born in Idaho, but raised in Montana on a cattle ranch. While I was in college, the family ranch was sold and I moved toward a career in business. After business graduate school, I worked 10 years in Corporate America for a Fortune 500 Company involved in acquisitions and supervision of companies once acquired. Working closely with the owners of the acquired companies that had built their businesses from start-up sparked the desire to start my own company. For the next 25 years three businesses were started, developed and sold to larger companies or investment groups. The last few years have been spent in using financial contacts, assets available and the experience gained to help fund or invest in other promising companies, operations or projects. EDUCATION Washington University - St. Louis, Missouri - MBA degree BYU - Provo, Utah - Degree in Accounting

$1,000,000 to $99,000,000

United States > Michigan

Let’s take your idea to the next level! I make non-control investments in high-growth companies/concepts/projects. I work with companies that have reached an inflection point in their lifecycle, where an infusion of capital and the right partner can make a meaningful difference in helping them achieve their growth plans. I understand the unique challenges entrepreneurs face in scaling their businesses and have an appreciation for nimble and innovative founders that blaze their own trail. I have developed a track record in partnering with driven entrepreneurs to provide the capital, relationships, business development support, best practices, and strategic advice that a large multi-billion institution can provide. I am seeking to build substantial relationships with management teams over time, placing high value in proper fit rather than rushing into a deal. I am flexible in how we structure our capital and mindful of what makes the most sense for the business.

$1 to $100,000

United States > Michigan

I am 52 years old residing in Novi, MI. I grew up in a family business environment and have been lucky enough to operate businesses from start-up to $50 million in annual revenue. I have experiencing buying and selling companies as well as starting two franchise operations. I have worked in multiple industries including Healthcare, Training and Education, Staffing and Consulting, Software Sales and Training, and Management Consulting. I have worked with clients that ranged from small business to Fortune 100. I currently work as an advisor helping business owners create and implement execution strategies and tools to grow their businesses to the next level. I have a BBA from Western Michigan University. I am interested in both hands-on and advisory roles and investments could be placed as an individual or investment group.

$10,000 to $250,000

United States > Michigan

I am a 32 years old real estate professional. I have an undergrad degree in economics and a masters in finance from Georgetown University. I worked in capital markets for Fannie Mae for 7 years and lead a team that hedges a mortgage pipeline of $1.5B. I live in Northville Michigan with my wife. I am an avid outdoorsman who also played hockey my entire life.

$1,000 to $30,000