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

I am a private investor looking for capital requirements in the $5,000 to $100,000 range. My backgrouund is in real estate financing but I'm open to look at other projects. If the deal makes sense and the risks are carefully weighed, I'm ready to get you funded. I always keep an open mind and I'm ready to review your proposal. All the best.

$5,000 to $100,000

United States > California

I am an accomplished data scientist who has consulted with both public and private sector industries looking to provide data-driven, strategic advisory directorship to a micro to small company between startup and growth phases.

$1 to $10,000

United States > Illinois

I have owned several companies from construction to manufacturing. I have a large amount of property and a large net worth. I have invested a total of 100 million + over the past 10 years in all sorts of companies using private money sources. I have in-house investment funds and also several groups to fund deals.

$50,000 to $25,000,000

United States > California

We are a forum who are currently looking for projects that need Round A or B investments.

$25,000 to $100,000

United States > California

I am a private investor and very interested in investing my money in a very secure investment within the Entertainment Industry. I am a business owner myself who wishes this opportunity was around when I was looking for investors. My goal is to seek a good opportunity to invest in a company or product that has true potential and can meet other satisfactory goals that I have put in place for my children.

$10,000 to $1,000,000

Netherlands > Naarden

We are an IT company from the Netherlands focusing on contracting, managed services and software development. With our venture lab for start-up ICT companies we are able to invest and provide support. We are looking for software/service related companies.

$100,000 to $1,000,000

United States > Arizona

Former consulting engineer; former commodities professional trader; private investor with some partners. Looking for wind-fall profits resulting from providing financial assistance at crucial time for mineral production companies.

$0 to $500,000

India > Gurgaon

I am an entrepreneur who has made his money from Green Tech investments in recent past. I would like to invest in Green Tech Project and guide it to success without getting involved in its nitty and gritty.

$1,000,000 to $5,000,000