There are plans for doing business, and then there are "business plans".
For example from Y combinator :
Q: Do we need to write a business plan?Most investors are investing in you first, idea second. Some consider the exercise of creating a business plan more important than the plan, but all want you to be committed to the effort and knowledgeable about your target market.
A: Not for us. We make funding decisions based on our application
form and personal interviews. We love
demos, but we never read business
IMHO, you should always have a one pager available to leave behind whenever you're in the presence of capital.
A formal business plan with five-year projections is probably useless.
But you'd better be able to say who needs your product, what they'll pay, how you'll get customers, why you're different from alternatives, and how you know any of the foregoing.
And how much money you need and what it will be spent on.
I think that pitching without a business plan is a result of the success of SAAS businesses, and is probably more of a silicon valley thing. In my specific geographic region, most angel investment seems to be in biotech or other tech-related sectors, and not as much SAAS. Here, nobody would consider pitching an angel without a business plan.
As Jarie said, probably quite dependent on the angel, though.
A formal 100+ page plan is not only not unnecessary, but can actually negatively impact the impression to an Angel. With all the time you spend on the plan, how much time do you have left to spend on the business?
Prepare a short plan that basically outlines what your business does, how you intend to make money, and what you plan to spend money on. You can probably fit all this information onto a single page. Think of it as a brochure that you can give to potential investors. If you can, customize each version with information about that particular investor, and the value you believe that they can add to your business as a person - angel investing is much more personal than VC in general.
I'd like to point you to following two articles by David Croslin:
http://davidcroslin.com/blog/?p=80&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+DavidCroslin+%28David+Croslin%29 You'd get an insight into how some of them think. Also, I'm sure, it will answer many of the questions running in your mind.
Hope that helps you a bit. :)
Angel investors vary tremendously in what they want to see. At a minimum, they will want to see an executive summary and a pitch. I have heard of some that just want to see the product but they are rare.
A lot of times the amount of materials you need is directly proportional to:
To answer your question, they will probably dismiss your attempt so be prepared. Angels want to see that you have thought through your business and that they will get a return. If you don't have the minimum amount of thought put into it, then their confidence will be pretty low.
Think of it this way. Say you are an angel and two people come to you for money. Both have a "product" to demo but one tells you a complete story of the business. This person is passionate about the product but is also passionate about getting customers, marketing and have as solid exit plan. All things being equal, you bet on the guy with the better plan since as an investor, you want an exit. That's the whole point (well, mostly the whole point).