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

Seasoned Marketing and Business Development Expert

$50,000 to $100,000

United States > Michigan

I am working with partners providing funding, debt and equity, for businesses in need of capital. ($0-2.5 Mil) Specifically, I am looking for growth and transition opportunities. I am a Michigan native and have spent the last seven years doing numerous deals (20+ deals, over $50 Million invested or lent) working with companies to create the optimal capital structures. These deals have been across multiple industries and geographies, mostly in Michigan and the Midwest. Repeatedly, deals struggle to get done due to lack of collateral or equity. I am looking for opportunities to help managers have the ability to acquire their businesses and sellers be able to keep their companies local, after the sale. I have an extensive network of lenders, operators, and advisors to help in various situations.

$0 to $2,500,000

United States > Michigan

I am a 46 year old married man and I reside in Michigan. I have been in the finance business for 22 years and have funded everything from someone buying a Island to small inventions. I have many contacts all over the world and if my group does not have the taste for a project then I most likely can get it done with my contacts. I have a full staff that assists me and we will not waste your time. If we like your deal we will move forward.

$500,000 to $65,000,000

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 have grown several companies into success. Run a 82 million real estate sales company and have done and managed developments.

$50,000 to $5,000,000

United States > Michigan

I'm a well rounded young teacher who has capital available for investments. I would be a perfect silent partner or someone who can quickly learn whatever. Also, I have a lot of free time in the summer. I would be a wonderful partner to work with.

$1,000 to $35,000

United States > Michigan

CPA with 5 years of experience in the Financial Services Industry now working in Finance and Accounting for one of the United States largest Cannabis Cultivation and Processing Companies. Interested in investing in the Cannabis Industry.

$10,000 to $200,000