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

Invested in a Battery Manufacturer company in China, and currently as a consultant for the company. My family is operating multiple businesses in various industries, including Real estate, Cloth manufacturer, machinery manufacturer, etc. My background and knowledge will give good support to my partners. I am open to invest into potential businesses starting from 100k to 1 million. I am currently on a business trip in China, the best way to get in touch with me will be email.

$100,000 to $1,000,000

United States > Oklahoma

Stocks, Real Estate Private Investor Senior Level Manager

$100 to $1,000,000

Mexico > Zapopan

Investment history: My family company has invested in the automotive, mining, and real estate industries since 1934. IThrough the 1970's we had a network of 5 Ford dealerships and 2 calcium hydroxide mines. In the 1980's we started developing real estate and have built over 300 housing and commercial units in 5 states in Mexico. Recently we have started an Investment company that provided capital for a new company in the emergency and defence industry. We are now expanding worldwide with offices in the U.S. and Colombia, selling mainly to the U.S. Deppartment of State through the National Security Agency. That was our first angel investment experience and we are looking for new opportunities. We are headqueartered in Guadalajara, Mexico, with offices in Oregon, USA and Bogotá, Colombia.

$100,000 to $500,000

United States > California

CPA with over 10 years experience in finance & accounting. Strong M&A & business analytics background. Currently the Director of M&A for a healthcare company in southern CA. Been involved in a handful of real estate deals and looking to put capital and knowledge to work.

$5,000 to $50,000

United States > California

I am a General Consulting Partner for a legal firm that specializes in obtaining $300K to $5 Million in unsecured corporate lines of credit. My team and I will work with the corporate management staff to improve the corporate profile and financial resources for the company should they qualify for our services

$100,000 to $1,000,000

United States > California

Oral and maxillofacial surgeon in private practice looking to diversify sources of potential income and have previously invested only in the financial markets.

$50,000 to $200,000

United States > California

I am a private investor with experience in finance, accounting, and consulting for nonprofits. I am looking to transition from investing solely in traditional investment vehicles to a more diversified portfolio.

$1,000 to $20,000

United States > Illinois

We help businesses and their owners with the day-to-day challenges of making sure the business has adequate funds for operations or expansion. We work with all kinds of financing scenarios such as private equity, venture capital, angel investors, bank loans, lines of credit, working capital, equipment financing, SBA loans, purchase order financing, real estate financing, mezzanine financing, private equity and other combinations of debt or equity financing.

$1,000,000 to $50,000,000