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

We have experience investing in and operating manufacturing companies, business service companies, and hospitality companies. We are looking for companies that already have cash flow and our looking for a partner to take their business to the next level.

$50,000 to $2,000,000

United States > California

Organic entrepreneur with 25+ years of practical knowledge weaving through business growth. Consultative mindset to help spell out a vision for an audience. Experienced in building teams from Idea's to Launch. Managing teams to profit. Enjoys complicated challenges that have meaningful exits. Presently, participating in investor's due diligence, capital strategies, start up and middle market development and best practice business development strategies. Enjoying equity positions in a portfolio of 150 companies.

$25,000 to $500,000

United States > California

I am a 25-year business and real estate attorney. A business would benefit in numerous ways with me in a co-management position, as an advisor, or as a board member. I have extensive experience in numerous areas: contract preparation, negotiation, risk assessment, management, partnership, incorporation, fiduciary obligations, trusts, etc. I have ample, successful trial experience and would offer a business a high level of protection and security, regardless of the stage of development.

$10,000 to $100,000

United States > Nevada

We're a private group of very high net worth SEC accredited investors who are current business owners and professionals in the technology industry. Our group collaborates to invest beyond technology investment opportunities to diversify our own investment portfolios. Our group's objectives are providing capital and partnering with entrepreneurs as advisers.We search through several investment opportunities throughout the year, invest and support the best ones either as an individual or a group. We choose to be early investors in high-potential start ups preferably in but not limited to the technology industry. Our group has the operational experience, industry knowledge, professional network in supporting every stage of a startup's growth potential. We provide not just necessary capital but valuable resources needed to grow a successful company.

$0 to $50,000,000

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

This group comprises operationally experienced investors with diverse backgrounds ranging from software development (multi-exit entrepreneur) management consulting, private equity and the U.S. Marine Corps. We are a private equity group targeting profitable small businesses where we can partner with existing management to execute transactions including partial/full equity recapitalization, management buyouts, and in select cases growth equity investments. We seek to serve in an advisory role and provide strategic guidance and financial resources to small businesses that have the potential to grow.

$20,000 to $3,000,000

United States > Virginia

I have invested in many companies over the years. Won some and lost on several but it is a numbers game. I look for strong management teams that listen to advisors well and know their marketplace. I also try to bring value to companies I invest in by helping companies identify and utilize leverage, build momentum in their marketplace and position the entities to maximize strategic resource and capital channels within the public markets if / when it makes sense.

$1,000,000 to $100,000,000

United States > California

Private Equity group. No limit on capital

$100,000 to $9,999,999,999