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 have an extensive background and over 25 years of leadership experience in the IT industry, government and military, working at the director through c-suite level running businesses and the senior officer level in the military. I have experience as an entrepreneur in various sized companies, at all levels of leadership, in both the technology and financial services fields. I am looking for solid investments with motivated entrepreneurs, who can demonstrate a well thought out plan and have shown success.

$100 to $20,000

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

Venezuela > Santa Cruz

I have a small factory in Venezuela which manufactures tranportation equipment and am in the search for new ventures.

$10,000 to $1,000,000

United States > California

Project Manager assigned as the Contracting Officer Representative to SSC Acquisitions and Financial Services, which services Assured Access to Space at Space Base Delta 3 in Los Angeles, California. My previous assignment was as Program Manager for the USSF-12 launch Ring and Ground System Integration and Test Lead, Space Test Program Long Duration Propulsive Evolved Expendable Launch Vehicle Secondary Payload Adapter for the Advanced Systems and Development Directorate, Kirtland Air Force Base (AFB), New Mexico. In this capacity, I led the Department of Defense Space Test Program spacecraft programmatics, finances, scheduling, launch campaign, cybersecurity, and communication security that ensures compliance for five spacecraft worth over one billion dollars. I also led a 42-member ground system test and integration team supporting inaugural missions on next-gen enterprise ground systems. Interested in private investment.

$1,000 to $20,000

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

I am an investor looking at around $50,000 to start and up to $100,000. This is cash available looking for an interesting, probably upstart company with a good idea who needs money to get going. My preference would be an investment with good return that has the possibility of rolling back over into the company for future development and returns. As further background, I am looking to invest in areas other than stocks, funds, etc. My net worth is approximately 1.4 million of which most is in land in Arkansas.

$0 to $100,000

United States > California

Private investor looking to invest in established or emerging technology. Background in IT management.

$25,000 to $200,000

United States > California

Engineer with investment Capitol

$5,000 to $25,000