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

Individual investor. I currently work in supply chain & logistics within a manufacturing environment, and I've held a variety of other roles in purchasing and sales in the past. I also currently own a couple rental properties as well as a small residential cleaning business. I have a B.B.A. - Supply Chain and am currently enrolled in an M.B.A. program. I'm a young professional with the entrepreneurial looking for my next project. I'm open to being as involved as necessary and putting in some work, or a silent partner.

$100,000 to $5,000,000

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 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

United States > Michigan

Recently retired police officer, currently working as management in the private sector security. Interested in any possible investment but have my eye on anything in the cannabis industry.

$1 to $100,000

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

Hello, I am a 38 y.o., looking to invest in wide range of industries to diversify my portfolio. I have experience in residential real estate and beginning to invest in commercial real estate. My wife and I are healthcare professionals and Michigan has been our home for the past 13yrs. I could serve as hands-on or silent partner, depending on the needs of a business.

$10,000 to $100,000

United States > Michigan

25 year old single guy in Rochester, MI. I work as an engineering specialist at Eaton and will be an MBA grad from Indiana University in the next few years. I already have a Bachelors and Masters degrees in Aerospace Engineering. I've been investing in out-of-country real estate and in-country stock market for the most part. I've got a good network of techies that can help digitalize any industry. I've also got a few close friends who would be interested in a joint investment with me, given that the idea is solid.

$0 to $25,000

United States > Michigan

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

$5,000 to $50,000