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 > Heath

I am a recently retired 50 year old, married, father of 4 boys. In May of 2013 I sold my shares in a company I served for 23 years. In 1990 I started as a salesmen in a privately owned family business and over the years worked my way to sales manager, V.P of sales and ultimately President of the company. In that time I doubled the branches to provide coverage of the United States and export in the Caribbean and South American. Sales went from 3,000,000 to 30,000,000. I am well versed in getting things done with small budgets. I had set my family up well financially and thought I could retire young - but I have the itch again. I would love to help someone develop their passion and idea and make it the next big thing. As the Queen said, "You could never be too rich ........".

$1,000 to $500,000

Texas > Austin

I represent a married couple who have established a company specifically to invest in startup or existing small to medium sized businesses. Our goal is to assist the entrepreneur with seed capital to start or expand an existing business. We search for local innovative businesses located in the central Texas area and anticipate an advisory to silent investment role.

$10,000 to $500,000

Texas > Fort Worth

I am an accredited investor looking for investment opportunities to diversify our portfolio. I am a CPA and financial planner with a strong business background. I like to invest in business that I can clearly understand and see the value add.

$2,500 to $50,000

Texas > Sugar Land

I am 32 years old and married, currently live in Houston. I have done several investments in real estate and retail. Currently am self-employment in rental property management. I have masters degree in finance.

$500,000 to $3,000,000

Texas > Grand Prairie

39 year old male, married no children, living in the Dallas Fort Worth area. Teacher for 17 years in the ISD systems throughout Texas. Have a BS and Master in Education from Prairie View A&M University. Invested in real estate over 10 years. Recently formed an investment group, we are extremely motivated in investing in start up companies. Willing to be silent investors as well.

$500,000 to $2,500,000

Texas > Bowie

Educated investor with backgrounds in Oil/Gas Drilling, Financial Services, Securities Trading, Government Operations and Corporate Management. Looking to enable growth and add value both directly and indirectly.

$250 to $250,000

Texas > Friendswood

We are a husband and wife team that have an interest in investing in small or start up companies. Combined we have a CPA and experience working in large PE owned companies, and an operations executive that has successfully led exits for PE companies we can add value in both operations and finance for business owners. We have experience in commercial and industrial construction, industrial manufacturing, and also invest in residential real estate. Currently located just south of Houston. We would be happy to take a hands on role or an advisory role in the business.

$5,000 to $200,000

Texas > Houston

Experienced investor with MBA looking to substantially grow small businesses.

$10,000 to $300,000