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 > South Carolina

We are a technology-empowered provider that has worked with over 200,000 businesses across the United States. We take a personal approach with lending, and make sure our customers receive the highest level of support to identify a debt financing solution to help grow their business. Our simplified process enables users to receive the fastest loan decisions at the lowest rates with the least amount of hassle by streamlining the application process. We focus on the health of the business today; rather than traditional metrics and personal financial statements evaluated by financial institutions. If you meet the following criteria, than we have a solution for you: 1+ years in business $100k+ in annual revenue $2,000+ average bank balance 500+ FICO Few to zero NSFs/negative days

$0 to $1,000,000

United States > California

Real estate investor for 29 years, invention funding, start ups, green projects , biofuels, alternate energy, private investor and have many friends like myself.

$100,000 to $10,000,000

United States > Nevada

I work with a private equity investment group located in Southern California. We are very interested in "green" technologies and have made recent investments in water purification and wind technologies. We prefer companies that have "disruptive" products or services regardless of industry. We are not geographically constrained and have done a number of deals outside the US. We prefer companies that already have revenue, but will consider start up projects with exceptional or unique IP's. Each project is considered on its own merits. After 15 years we have access to numerous resources with investment banks, broker dealers and other related resources. There are no fees or costs for the project company associated with our investment program. If you are seeking investment or expansion capital we would be interested in reviewing your project. I am the person responsible for the initial due diligence and financial analysis of projects for the investment group.

$500,000 to $5,000,000

United States > Maryland

5mil to 50 mil range. Looking for biodiesel, waste to energy and aquaculture project.

$500,000 to $5,000,000

United States > California

I have been involved in commercial real estate projects for over 3 years. This includes recreational / resort properties, multi family, retail and mixed use projects. I am willing to look at fully or partially developed projects. I have also been involved with mining projects and oil and gas reserves and have access to a number of JV partners looking to invest in ground assets. I have a corporate background in senior management and through my consulting background have worked with many different industry sectors and companies from small family owned to Fortune 500.

$250,000 to $10,000,000

United States > California

Currently an entertainment professional at a major animation studio. Prior management experience in finance & marketing in the hi-tech, ecommerce, retail, and airline industries. Previously worked with an Angel Network and VC in Chicago before moving to Southern California. Current early investor in a $300M mens fashion ecommerce company.

$1 to $10,000

United States > California

Private investment fund. $5 million available for the right company.

$4,000,000 to $5,000,000

United States > Wyoming

Founder of D**** Infotech, Inc. I have 20 years experience in Sales and Marketing. Interested in investing or merger of the company with suitable partners.

$50,000 to $100,000