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.

Registered Investors

United States > California

- I've been investing in companies since 1991 and focus mainly on medical device but have interests in other industries. I am an engineer by trade and typically invest alone or with a group of friends.

$25,000 to $50,000

United States > California

I have been engaged in private equity and debt investments for the past 16 years through the partnerships and direct investment vehicles. Investments have ranged through business life cycles in technology and service industries both in US and Europe. Have considerable experience in Europe and represent several private and institutional investors.

$50,000 to $10,000,000

United States > California

Private real estate investing for three years. Private and public market investor for the past 10 years. 12 years of Military experience, 5 years as national guard. I have been a group and private investor in different situations.

$0 to $30,000

Hong Kong > hong kong

Investment History- I have invested in private equity (Days Inn China and Vivocare) and am an active listed equity and fx investor. I work in Equities at a large international Investment Bank in HK. I am a private investor.

$50,000 to $150,000

United States > California

B.A. degree on business marketing & advertising. On line start up social blog business on facebook. Also integrated with Google adsense & adworks. Currently seeking to expand to more on line social blogs. Knowledge on many language and Europe economy,resided in Germany for 6 years. U.S Army veteran for 10 years and worked in U.S. postal service for 18 years.

$75,000 to $100,000

United States > California

I have purchased one greentech company and looking to expand into other areas of the industry. I bring 15+ years experience in greentech, energy, and start-up companies. Experience as a group investor.

$25,000 to $100,000

United States > California

I am a private investor. My professional background includes equity research (large and mid-cap stocks) at a private investment boutique, a position at the debt rating agency Moody's Investors Service, and most recently project finance with a focus on the renewable energy industry. I am a CFA charterholder. My career skills development has been oriented towards buy-side investing and I wish to employ these skills to put some of my own money to work.

$1,000 to $50,000

United States > Ohio

We are a television and film financing vehicle for full length feature films. We also invest in ancillary products and companies that produce those products. I prefer television and film related investments. Companies that have assets are of interest, as well as pink sheet - OTC BB companies with stock. Advertising, Apparel, Arts, Entertainment, Finance, Investing, Media, Venture Capital

$500,000 to $10,000,000