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 > Irving

49 year old married male, individual investor. Background as a physician who left medical practice and spent a decade in pharmaceutical research and development for large pharmaceutical firms. Cofounded and help run a biotech company that has formed global partnerships in Asia and the EU and has recently moved offices to Texas. Interested in novel biotechnology/pharmaceutical/healthcare ideas or products for investment or acquisition. Also willing to consider investments in other more unfamiliar sectors of interest including oil and gas, entertainment, IT, aerospace, real estate, etc. Willing to be hands-on, advisory, or silent depending upon the needs of the business.

$10,000 to $200,000

Texas > Houston

Have my own trucking business and want to invest if it’s God’s will

$1,000 to $50,000

Texas > Angelica

New investor, just looking to put my money to good use and get a better return than CD rates and safer than stocks. Engineering background. Private investor.

$5,000 to $50,000

Texas > Eden

I am 31-years-old and interested in getting into the investment arena. I have been a gov't intelligence analyst for the past 9 years, but have recently quit my job, so I could move back home to spend some time with my father before he passes away. Needless to say, my life style has changed from what I am used to and am looking for a way to supplement my new lower income.

$20,000 to $40,000

Texas > Coppell

I am 33 years old married guy who just moved to Dallas area. Trained and worked as scientist/immunologist for last 8 years, I am now building up my hobby as a real estate investor. I am seeking new opportunities to invest in any business that would be profitable. I can be a silent, advisory or a hands- on guy.

$5,000 to $50,000

Texas > Porter

From Houston Texas. Have a Bachelors of Biomedical Sciences from SHSU. Am currently a lead lab tech doing genetic testing.

$1,000 to $50,000

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 > Houston

I am an entrepreneur who lives in Houston. I have built two smaller- scale (~$10mm) oil and gas companies. I sold one and am in the process of selling the second. Most of my experience is with technology/PE/ onshore US oil and gas plays. I have a BS in biochemistry and a MBA. I am mainly looking to be a GP, but I'm also interested in LP investments. Please reach out to me if you think your business is the right fit.

$25,000 to $250,000