Pennsylvania 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.

Pennsylvania Investors

United States > Pennsylvania

I'm self made. Started Home Improvement Business in 2017 with no capital and high interest 15k loan. Fully liquid in 5m all original debts paid in 5m and looking for new investment opportunities

$50,000 to $100,000

United States > Pennsylvania

Resident of south-central PA, experienced in business management/finance.

$50,000 to $500,000

United States > Pennsylvania

Semi - retired, looking for a partner to invest. Honest and straight forward, looking for same. Return on equity is critical.

$100,000 to $250,000

United States > Pennsylvania

I’m 40 with a wife and a little kid on the way. I’ve worked hard in the Power Industry for almost 20 years. 14 as a contractor working with Utilities, generation, and large scale industry (refineries). I presently work with a major Electric Utility as a Field Engineer in Transmission and Substations. I make a good consistent income and have a great credit score. I’m looking for investments and am open minded. I have always fancied myself as an entrepreneur at heart. The housing market seems difficult with taxes, insurance, and rates. Housing is also tough solo for the financial responsibilities. I am looking for something fun and 21st century to get involved in. Forward thinking.

$10,000 to $100,000

United States > Pennsylvania

Looking to purchase high end real estate. Also looking to finance large real estate transactions.

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

United States > Pennsylvania

Portfolio Manager, Investment Officer, B.A. Accounting Delaware MBA Finance Delaware Chartered Financial Analyst Current Investments include diversified global equity portfolio Individual Investor Silent Partner

$0 to $10,000

United States > Pennsylvania

I have never invested this way and am thinking about investing at this time. I am the executive Director of a non-profit organization.

$7,500,000 to $10,000,000

United States > Pennsylvania

I am an ambitious individual who has found a very fond interest in investing, business, and entrepreneurship. I am currently married with no kids, but that will hopefully change in a few years. I currently work in the IT industry as a developer and have been in IT for the past 6+ years. I have a bachelors degree in Cybersecurity, but do not use it at all in my current profession. I don't have a ton of investment experience but I do have an e-commerce investment that is active and had previously done a lot of research and hands-on with real estate; however, I felt it wasn't the right time for me to get into it. Since I have a lot of experience as a developer, I'd be happy to be hands-on with any investment if I feel I can allocate enough time to make it worth it. I feel my background in the area may prove useful for those less familiar with the subject.

$1,000 to $50,000