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 started my own company 12 years ago and have grown it into a successful multi-faceted corporation involved with manufacturing, retail and distribution of hobby game products. My main areas of expertise include business development, software development, retail, wholesale and finance.

$10,000 to $500,000

United States > California

I have started several businesses over the past 35 years. Owned the largest apartment building in Los Angeles, CA. Owned and operated a 337 acre wine-grape vineyard. Have a patent on a puncture resistant insole. Currently run two Non-Profits.

$150,000 to $500,000

United States > North Carolina

Career spans over thirty years as a business owner, corporate executive, consultant, and scholar. Spent the first sixteen years of my career as an entrepreneur, creating, building, and managing several successful companies, including a commercial banking firm that catered to vendors and manufacturers using equipment financing as a catalyst for driving incremental sales. This business was acquired in 1996 and went through multiple mergers and acquisitions that ultimately led me to joining Citigroup’s CitiCapital division as Vice President. For the next seven years I managed the business technology sector responsible for Cisco Systems, Oracle, and other major companies, building this group’s sales to over $200 million. As a consultant, coach, and Chairman of Funding, my clients have included well known companies such as Ericsson, Lucent, Corning Optics, Herman Miller, Haworth, Steelcase, as well as many small and midsize businesses.

$250,000 to $4,000,000

Israel > Ramat Gan

We are a Law firm in Israel interested in Real Estate deals.

$2,000,000 to $3,000,000

United States > Washington

I'm a small business owner who has purchased and sold businesses in the past. I am an Entrepreneur at heart with a background in the corporate and startup world. I'm a private investor open to all industries.

$10,000 to $100,000

United States > New Mexico

Managing Director for the a investment fund since 1991. Funded primarily manufacturing companies in the $5,000,000 to $250,000,000 range, but will look at anything.

$50,000 to $10,000,000

United States > California

We are intermediaries (rain makers) connecting people who have new ventures seeking funds with people who have funds seeking ways to leverage their investments. My background is financial services / wealth management, and as a result of doing this over the last 6 years I have amassed a substantial client and referral base. As a result of this network, everyday I get new projects crossing my desk. An example of a project that I lead to successful funding is Steven Cho - an LA based Internet Entrepreneur posted an idea for a Wireless service with distribution throughout the major hotels and airports of Australia. I contacted him through the Australian Investment Network and after a review of the opportunity I secured Ebsworth & Ebsworth (a major Australian Law Firm) on a Pro-Bono basis. I also had the company placed into the PriceWaterhouseCoopers CWEP program (Companies With Extraordinary Potential). I look forward to placing your opportunity. Sincerely

$10,000,000 to $50,000,000

Austria > Graz

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

$10,000 to $1,000,000