California 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.

Local Investors

United States > California

An extensive background as general counsel, entrpreneur, investor. Have launched start-up businesses later sold to major corporations e.g. Gillette, Zurich Insurance. In recent years invested $5 million in various law firms and lawsuits of social value.Have invested in numerous businesses both individually and as member of a group.

$5,000 to $100,000

Austria > Graz

15+ General Manager in small and medium size companies Development and successful exit of start ups

$10,000 to $1,000,000

United States > California

Financial investment in ongoing Sales and installation company. 20 years in senior corporate managemen. 20 years of Personal portfolio investment in excess of one million dollars.

$5,000 to $25,000

United States > Florida

We are a privately held funding group that specializes in providing many forms of debt and equity financing for projects. With a direct connection to some of the most wealthiest private investors we are able to structure deals that quickly get your business up and running. We provide funding from 1 to 100 million in the United States and Internationally. We partner with our clients to provide the necessary equity needed to succeed. We pride ourselves in knowing what our clients need and finding ways to make deals work for everyone. With over 30 years on experience in real estate investing, construction, development, business management and project financing our services are unmatched. We have the ability to quickly evaluate projects and present our clients with multiple funding options for a mutually beneficial investment. Because we are a private money source and not a conventional bank this gives greater flexibility to structure a financial deal

$1,000,000 to $10,000,000

United States > California

We're a private investment company, long established. Past activity related to real estate investment & development, mortgage loan financing, private placements. We are looking to invest & expand into areas related to renewable energy, real estate, land etc. We are passive investors.

$25,000 to $5,000,000

United States > California

I am an accountant and attorney with experience in start-ups through IPO. I have taken one company public and have also been the COO of a PEG. I have more than 20 years experience in the healthcare industry. I also have several years experience in real estate and am a licensed real estate broker.

$25,000 to $100,000

United States > California

Software engineer looking into investing cash with % partnership in a recent start up. I am willing to spent some time helping to manage business matters,once partnered. We can talk more about details in person.

$25,000 to $50,000

United States > California

A Private Commercial Lender We are a private commercial real estate lender whose primary objective is to meet our borrower's need for short-term bridge financing with efficiency, flexibility and professionalism. Our firm provides commercial real estate financing for borrowers in unique and time-sensitive situations anywhere in the United States. We focus on providing timely, reliable, and customized solutions that are not accessible through traditional lenders. Backed by private banks and various institutions,we are ready to execute a loan at a moments notice. We are committed to the successful performance of our real estate investment funds and loan portfolios.

$2,000,000 to $30,000,000