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 > Palo Pinto

Retired 11/1/20. Functioned as president of $19M distribution (8 yrs.) and $1.6 M transportation (5 yrs.) companies. Background also includes manufacturing experience. Michigander transferred to Texas in 1982. Raised on dairy farm. Age: 71, married and live on Lake Palo Pinto, in Palo Pinto County. BS in Business Admin from Michigan Technological University. As individual investor, have investments in housing and storage. Seeking 5-10 year investment opportunity. Willing to add value or stay out of the way.

$50,000 to $300,000

Texas > Austin

I am based in Austin, TX. I have a masters degree in computer science from a reputable US university and have worked in the tech industry for more than a decade. I have previously invested in publicly traded companies through stock exchange. I am anticipating advisory role for my involvement.

$0 to $20,000

Texas > Midland

I am a 51 year old Area Manager of an integrated Oilfield/ Civil Construction Company. I live in the Permian Basin of West Texas. I have worked all over the US and have extensive diversified experience in Oilfield / Civil Construction and Supervision. I am interested in hearing investment opportunities from people who are passionate, original and driven to succeed in their endeavor. I am an individual investor seeking new opportunities to participate in, on any level.

$5,000 to $50,000

Texas > Georgetown

Married, mid 40s, two children, home in Austin, TX. Former CFO, CPA, Board Secretary. Background in Engineering, Finance, Operations, Strategy, and Game Theory. While currently disabled, during career executed many acquisitions, developed a company from a paper business plan to an IPO. Previously helped drive the sale of a small company for approximately $400MM. BSME in mechanical engineering from Grove City College. MBA from Duke University. Various other undergraduate degrees along the way due to coursework required for the CPA exam. Inactive CPA license (state of NC). Former associate with Booz Allen consulting. Multiple roles in finance, strategy, and operations. Individual investor

$2,000 to $20,000

Texas > Baytown

35 year old with 12 years in retail. Also have years of experience as a business owner. Looking for entrepreneurs with Goals and similar Vision as myself.

$0 to $50,000

Texas > Pearland

We are a unique "solutions provider" of Commercial Lending Programs for Niche, Non-Traditional, Un-Bankable, "Out-of-the-Box" and "Time of Essence" Projects, for Commercial Real Estate Investors and Developers, Business Owners, (new and existing), Non-Profit Organizations (including Houses of Worship), and Ambitious Entrepreneurs.

$500,000 to $50,000,000

Texas > Tyler

Flipping house hard money lender or gap funder

$10,000 to $250,000

Texas > Frisco

I am a 49 year old married working in the Tech industry (with an engineering background in Computer Science) for the past 20+ years. I am interested in investing in either startups or ideas that have a potential growth. If the idea really interests me, I might be interested in hands-on, advisory role.

$1,000 to $50,000