Texas 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.

Texas Investors

Texas > Canyon Lake

I am a married 40-year-old Central Texas entrepreneur and individual investor with more than a decade of experience building businesses, investing in real estate, and evaluating opportunities. I have owned and operated rental properties, built and sold homes, and successfully developed and sold an RV park in the Canyon Lake area. While real estate and construction have been important parts of my background, I am increasingly focused on pursuing future opportunities across a broader range of businesses and industries. I am interested in partnering with capable entrepreneurs, operators, and business owners who have strong ideas, demonstrated expertise, and a clear path to creating value. I can contribute personal capital, practical operating experience, strategic guidance, financial and market analysis, and hands-on problem-solving. Depending on the opportunity, I am open to active, advisory, or primarily capital-partner roles and will consider both majority and minority investments.

$1 to $300,000

Texas > Austin

I'm a private investor and just starting out on angel investment. I'm prefer the investment around Austin area or close by.

$10,000 to $25,000

Texas > Frisco

We are looking for solid investments with significant upside potential.

$1,000 to $25,000

Texas > Austin

Back in 1992 we create a paper distribution company in Mexico, we sell products from the main US paper mills like International Paper, New Page, etc. this company now is one of the top ten paper distributors in the country. In 1998 we create a real state company to build warehouses for rent, today we have 20 units with more than 400,000 SF and another 4 are under construction.. In 2010 we invested in 3 different companies as a passive/active investor role, We continue to seek opportunities where to invest. We have an additional comercial company in Mexico, so we can be a distribution channel in case is required.

$100,000 to $2,000,000

Texas > Dallas

60 year old accountant. Recently the CFO of a multiple site healthcare company that was sold for $94M. 10 years manufacturing, 3 years public accounting and 20+ years healthcare experience. Looking to make investments in early to middle stage startups needing capital and accounting/finance experience. Level of involvement as needed.

$25,000 to $50,000

Texas > Houston

I am a CIO for an Investment Management firm in Houston,TX with $12 Billion in assets under management. B.B.A in Accountancy (CPA) from Baylor University and MBA (CFA) from Harvard Business School. Currently starting a family office to utilize my 15+ years of investing experience to diversify our family portfolio and work with business owners seeking growth capital or a passive investor to unwind part of their position. Our goal is to invest in local business with annual cash flows from $250,000 to $5,000,000. If you are a business owner in search of growth capital we are interested in talking to you.

$10,000 to $1,000,000

Texas > Dallas

I have over 15 years in technology, commercial real estate, and crude transportation. I have co-founded multiple start-ups over the past 10 years valued at over 100m including his latest exit from a West Texas fast casual restaurant chain. I currently sits the Board of Directors and/or advises for Shop for bags, Hedgechatter, Coinsis and Confluence Energy Partners LLC. With Southwest Strata, I lead various business development initiatives including deal origination, strategic direction, due diligence and business performance improvement for all deal flow. I holds a BS in management from Texas Christian University and have held a Private Investigator’s license, as well as, a Certified Information Security Systems Professional certification. I'm also a guest lecturer at several local DFW colleges.

$10,000 to $350,000

Texas > League City

I am a physician in the Houston area looking to gain broader exposure outside the stock market.

$5,000 to $50,000