Writing A Business Plan:
Business Plans for Angel Investors

Business plans for angel investors are as unique as the companies themselves.

Creating business plans for angel investors is a unique challenge. Angel investors carry with them an aura of mystery, perhaps because no two are the same. There are no "rules" with angel investors. They come in singles or in groups; they invest a few thousand or a few million; they specialize in one industry or in several; they contribute skill to the emerging company, or they don't.

The best angel investors have been around a while. These are the ones who know what to expect, and who also know venture capitalists for the next stage of investing.

There are so many scams surrounding angel investors that it's hard to list them all. There are many companies that claim to have "lists" or "contacts". If the company charges money up front, be very wary. Never, never send your business plan or your money to a company unless you are very, very comfortable with it.

There is, in fact, only one organized network of accredited minority angel investors in the country that I know of: Minority Angel Investor Network (MAIN), which is headed by Ben Franklin Technology Partners of Southeastern Pennsylvania. MAIN is a collaboration between Ben Franklin and its Minority Technology Advisory Board. It's focus in on technology ventures.

Other angel groups specialize in other geographical areas and other types of industries.

In creating business plans for angel investors, make sure that the plan truly represents how far your company has come. The further along you are, the better your bargaining position, and the more likely it is that you will be taken seriously.

• Create bullets of accomplishments, or pages of them, whichever works;
• Highlight the strengths of your founders;
• Nail down what it is that you are really looking for;
• and Nail down what you can realistically accomplish.

The notion of jotting a plan on a napkin is seriously overrated. If your business plan is real, get your ducks in a row. In particular,

1. Create the strongest business plan possible, and

2. Create an online business plan to knock their socks off.

Many angel groups function by first requesting a 2-3 page "executive summary" or an online application. While creating an impressive 2-3 page summary as requested is essential, it is also essential to have a full business plan for the angel investor in your pocket. When angels are ready to talk seriously, don't let yourself stumble with, "Oh, give me a week or two to finish my business plan."

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