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 > Houston

I am an experienced petroleum engineer in the early 40s, married, living in Houston, working full time in the energy industry. Over the past decades, as an individual, off work, I invested millions of my saved money in stocks, real estate, startups, etc. Being quite happy with the results, I believe the valuable learnings are worth even more than my financial gains to date, learnings that will pave roads to future milestones. I am always actively looking for next exciting 'project'. I prefer to meet people to discuss business models, with preference to be a hands-on investor if my equity is >20%, while acting as a silent investor if my equity is <5%. As of 2023, with the housing in short supply and rising interests, in the next couple months/years, I may end up being involved in flipping houses, new apartment development, or even custom homes. Finally, I have passed all three levels of Chartered Financial Analyst (CFA), & may use the charter network more often in the future.

$10,000 to $300,000

Texas > North Richland Hills

Savvy investor looking for good opportunities to make some money. I believe that everyone deserves a chance if they are willing to put in the work.

$500 to $500,000

Texas > Sugar Land

I am a 47 year old former Chief Operating Officer of a Houston based US publicly traded global energy services firm who currently operates my own management consulting firm. I am looking for high growth potential investment opportunities and am particularly interested in disruptive technologies, particularly in the energy services sector. While I am an individual investor, for the right types of opportunity I could bring additional investors onboard. While I would ideally look to serve in an advisory role, I would also be willing to take a more hands-on role if my involvement could add value. Areas of expertise include corporate strategy, business development, commercial negotiation, project and operations management, and operational efficiencies. I have a BS in Civil Engineering from Louisiana Tech University and have graduated from the The Wharton School's Advanced Management Program at the University of Pennsylvania.

$10,000 to $100,000

Texas > Austin

I am an entrepreneur - who is looking to provide capital to other start ups interested in offering equity into s a good program/product.

$1,000 to $100,000

Texas > Princeton

I am a current business owner and real estate investor. I'm looking to diversify profits from my existing endeavors.

$500 to $250,000

Texas > Colleyville

We are an independent investment firm that provides private equity investments to a select list of clients. We have a focused investment objective for specific markets with forward thinking companies to provide profitable returns through primary partnerships, secondary purchases, and direct investments.

$500,000 to $20,000,000

Texas > Pearland

We maintain a global network of more than 1,000 experienced professionals serving start-ups, early stage, venture capital, commercial, business, residential & private equity clients that are needing financing for their project. We have deep experience working in all regions of the world across all major sectors–from consumer products and financial services to technology and industrial goods. We support our clients across a broad range of objectives. We also work for many of the most prominent institutional investors, including sovereign wealth funds, pension funds, endowments and family investment offices.

$50,000 to $9,000,000,000

Texas > Prosper

Am a Telecommunications industry veteran with an extensive track record of success. Have worked for some of the worlds largest telecom companies.

$5,000 to $100,000