What would be a good process for pitching an idea for a social networking website to Investors?

Dear Yahoo! Members,

I have recently began an investment with a few partners, and we have invested in a high grade server that we will be starting a hosting business with.

A side project of mine involves the creation of a social network system similar to facebook.com. I am in the process of seeking Angel Investors, and is in initial talks with a developer on getting a working prototype online and working.

Question is, the reality of social networking websites is that revenue strictly pretty much comes from advertising, and many of these sites, age, and eventually die (though I haven't seen any big ones really flop yet).

I do have a creative idea to get advertising out the door, however, I really wouldn't know where to start on how to get this idea successfully pitched. As some have said, many of these websites eventually just hope to get bought out to earn a buck, such as Youtube.com.

Please lend me some advice on what I need in my business plan, as well as general advice.

What would be a good process for pitching an idea for a social networking website to Investors?myspace co

According to the book “The ABC's of Writing Winning Business Plans: How to Prepare a Business Plan That Others Will Want to Read -- and Invest In” http://www.amazon.com/exec/obidos/ASIN/0... by Garrett Sutton, below are some tips to make a winning business plan that can get funding:

- Money follows management. Investors look first at the people involved in the company. If you are just starting out and don’t have relevant experience, investors expect to see that you have an experienced team of advisors and employees helping you in the business. In many cases, it's who you know that counts a lot in getting funding from investors

- Make sure you “sell” the one reason your business will become profitable.

- State clearly the strategies you will employ to get the word out about your business. Your business plan must show how you will leverage the Internet, public relations, viral marketing, and other strategies to attract customers.

- Present realistic estimates of the time, energy and costs of building a successful business. Do not underestimate or overestimate revenues. While investors know your numbers are simply guesses, they want to see that your numbers are within the “range of reality.” Be careful of your financial statements: this is one area where you can easily lose credibility if presented poorly.

- Benchmark similar companies to show that you’ve done your homework and researched the market.

- Your Executive Summary is your calling card. If it is not a winner, investors may not even read your entire plan. Emphasize your own as well as your team’s track record in the Executive Summary.

- Before sending your business plan to lenders and investors, send it out first to a few in order to get feedback. You’d want to correct your plan if someone tells you that you’re way off mark, rather than have a potential investor tell it to you and lose the chance to get the funding you need.