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

I am in the process of moving to Georgetown Texas having just sold my consulting firm in Michigan. I started a consulting business 14 years ago after retiring from teaching. The firm has greatly impacted education throughout the entire state of Michigan as the 9+ consultants have developed disruptive formats for educating students on a personalized level. My investments have been largely in technology and other sectors that are unique and unconventional. I hope to be involved in a hands-on, advisory capacity as an individual investor.

$5,000 to $100,000

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

We offer emerging growth companies or small and medium size enterprises (“SME’s”) proprietary capitalization advisory services in the form of a License Agreement which provides SME’s a turn-key solution to proactively and successfully complete a private placement of securities and acquire investors for their own enterprise. The license allows those SME’s to offer their investors a principal protected unit with flexible liquidity options that mitigate their downside risk. We also acquire controlling interest in public companies with the objective of restructuring them to merge with private companies who are seeking to go public. We also acquire controlling interests in private companies with the intent of expanding them with blue chip management teams and synergistic rollup acquisitions.

$10,000 to $1,000,000

United States > Michigan

Work in automotive industry. Looking to be an investor and partner.

$100,000 to $250,000

United States > Michigan

I have over 20 years experience as an entrepreneur. I sold my first company to a national organization and have been operating my current company since 2005 in the healthcare space.

$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

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

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