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

Mid-30s single male with 10+ years in the oil and gas industry as an earth scientist. Looking for silent partner opportunities to diversify investments.

$1 to $20,000

Texas > Liberty

30 year old engaged female, living in Southeast Texas. Have been a successful business owner to 2 companies for greater than 4 years each. Currently own 100% of a nutrition store and 50% of an oilfield trucking company that employs 15 employees. I hold a degree in Nursing as well with management history in the hospital setting. I have invested into my businesses and want to invest into other ventures that are interesting to me. Investment for the nutrition store was 60,000. and the trucking company was an investment of over 1,000,000. I urge to be involved in the company whether it be hands-on or advisory, I want to see the company succeed and to be a beneficial factor in its success. I would be an individual investor.

$1,000 to $50,000

Texas > Dallas

I am a real estate and oil and gas investor. Looking for opportunistic situations. Want competent deals/partners; no concepts/true start ups, pretenders or idiots. Time is as valuable as money to me. The quality of information presented will dictate turn around time. Can kill a deal in minutes; could take days to determine a level of interest if it passes the sniff test.

$200,000 to $10,000,000

Texas > Mckinney

60 yrs old, married, based in McKinney TX. 38 years energy industry experience. BBA-Finance Texas Tech University. Advisory role. Individual Investor.

$50,000 to $500,000

Texas > Houston

I am a 47 years old married, Chemical Engineering professional in Houston TX. I have 27 years of petrochemical experience with various roles ranging from production engineer, process engineering, Operations management, Technical management, and roles with global reach. I've lived in the US Gulf Coast and Europe (Germany & France). I have 27 years of investing experience with typical investments such as stocks, bonds, and options. I am looking to expand into private equity. I am active in the Sustainability space, looking to reduce energy intensity, carbon emissions, and costs.

$1,000 to $25,000

Texas > Dallas

- To be disclosed as required

$15,000,000 to $99,000,000

Texas > Melissa

Teacher with 100k to invest in North Texas. Will be hands off.

$10,000 to $100,000

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