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

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 > California

I have worked in finance for over 10 years and have 2 securities licensees which are a Series 6 and Series 63. I have worked in marketing of financial products/services as well as worked for start up firms. I have also started my own company 5 years ago in which most of my work is based online. I have worked with my fathers company and have access to some of the wealthiest families in the US (average net worth over $500 million) who are always looking for new, creative, alternative investments everyday. I have invested in my own business but would like to get in after the start up stage for a new investment opportunity after doing my own due diligence. I also dont just want to make money, I want to help the world be a better place at the same time. That is my mission.

$1,000 to $50,000

United States > California

I have done two startups, and currently manage a $35M Incubator for a large North American corporation.

$10,000 to $100,000

United States > California

Tax Attorney. Starting to get into private investment game.

$1,000 to $25,000

United States > California

Good Day! I am excited to be a part of this venue. I am a University of California Santa Cruz graduate with a political science degree and a law degree from Lincoln University. I am a non-attorney, JD who has owned a real estate investment company, and I have access to fund large-scale projects within certain industries. The funding I obtain requires no upfront fees whatsoever, however, your business plan and financial projections must be verified and accurate. In addition, you must have in-depth experience in the specific project for which you are seeking funding. I look forward to hearing from you.

$10,000,000 to $20,000,000

United States > California

I am interested in exploring various opportunities currently seeking capital.

$500,000 to $9,000,000,000

United Kingdom > Brighton, Sussex

Training, heavy experience in business and finance world.

$70,000 to $200,000

United States > California

I have several backgrounds. I am currently and have been for 10 years at Grocery Retail as my primary income. I have invested successfully before. I wish to remain as a silent investor what I ask for my loan is in exchange for a yearly ongoing royalty percentage on sales and profit that way you don't pay back the loan its a win win for both of us. I look forward to working with you.

$1,000 to $100,000