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 > Fort Worth

We are a small group of partners looking for investment opportunities in the commercial real estate sector. We have particular experience in real estate and building services. We are seeking the role of silent or active investors, depending on the type of propositions available.

$100,000 to $200,000

Texas > Houston

I'm a CPA who recently sold my stake in a profitable consulting firm that I co founded. I'm looking for a passive investment opportunity that will yield a good return. Thanks

$5,000 to $350,000

Texas > Houston

Location: Houston, TX. Education and Experience: M.S. in Mechanical Engineering. Have experience in the Oil & Gas industry and food packaging machinery. Status: Individual investor.

$0 to $100,000

Texas > Dallas

I am a real estate developer, serial entrepreneur and angel investor. I left a corporate career track to invest in real estate full time in 1996. As a real estate investor I began buying and selling single family homes and parlayed his capital into larger developments and then small startups of my own and as an angel investor. I was a member of the Rockies Venture club in Denver Colorado and the Central Texas Angel Network in Austin. Nothing I invested in went “big”, but I've seen several hundred deal pitches, run diligence on a couple of dozen investments and gotten to know the process from the Angel side as well as the IPO experience when I was in Corporate. In Dallas I have my business startups and real estate developments.

$10,000 to $100,000

Texas > College Station

Team of investors/advisors that provide innovation through co-creation.

$1 to $1,000,000

Texas > Dallas

Principle focus is on established oil extraction, downstream refining, storage, and distribution businesses. Our activities in this area are concentrated in the United States, Canada, Western Europe, and the Middle East. As derivative products of oil, our regional focus is the same as that of our Oil & Gas activities. We work with established specialty chemicals, commodity chemicals and fertilizer businesses throughout the United States, Canada, Latin America, and Western Europe. Established precious metal mining businesses that have both a history of production and existing proven reserves. Activities in this area are concentrated in the United States, Canada, Latin America. We work with established base metal and non-organic mining operations within our regional focus. We also invest in commercial development,refinance,any type of project development income producing we'll look at funding. Also Residential.

$10,000 to $1,000,000,000

Texas > Pasadena

Private investor and experienced advisor interested in increasing the wealth your business is capable of generating. I am looking for business owners with the knowledge and drive to go to the next level, who need funding and financial acumen. Twenyfive years experience in investments and finance up to $500 million.

$100,000 to $500,000

Texas > Austin

I am currently a Partner in a Boutique Investment Bank based in Austin with my business partner a fellow CPA based in Houston. We provide the following services to our clients: 1) Capital Raising Services: helping clients to secure funding: Debt, equity, traditional, alternative from private and public sources. All industries. US and Canada, South America, Australia in particular via IPO or RTO. 2) Investor Relations Consulting: developing the pitch deck, information memorandums. 3) Business Acquisition Consulting: investment analysis, economic modelling, valuations and due diligence 4) Fractional CFO Services: Financial Planning & Analysis, P&L analysis, cash forecasting, budgeting & forecasting. We currently have clients in a number of different industries including: Oil and Gas, Resources, Clean Tech, Real Estate, Staffing, Medtech, and Technology. I have previously been a Co-Founder of a start-up Oil and Gas company which we successfully completed an IPO.

$0 to $100,000,000