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 > Austin

Experience in personal investments mainly in the equity markets; now looking to expand into direct corporate investment in small companies with growth potential.

$5,000 to $75,000

Texas > Flower Mound

I am a young investor currently living in Dallas, TX. I work in sales at a tech company. I graduated with a Bachelors of Business Administration with a major in Marketing from the University of Oklahoma. I have invested in stocks and mutual bonds. I am trying to get started in investing to make more money and help entrepreneurs grow their businesses. My experience in sales and marketing could be beneficial for newer companies that do not necessarily have experience in those areas. I view those as the 2 most important skills to have in order to grow a business. Currently I am anticipating being a silent investor, but if I were to find a business that I too am passionate about I am not against having some involvement in helping them grow their company. I am an individual investor.

$1,000 to $25,000

Texas > Spring

Corporate finance and accounting professional with a personal interest in investing and entrepreneurship. Experienced in the manufacturing, chemicals and transportation industries. Interested in business opportunities that possess some distinct economic and competitive advantages. Adherent of a fundamental, value-oriented approach to valuing businesses. 32 years old, based in Spring, TX, happily married with 2 beautiful daughters.

$10,000 to $100,000

Texas > Houston

Houston-based energy professional with experience in energy startups, and interest in a broad range of potential investments. A fair amount of expertise, but not a lot of time to contribute.

$0 to $150,000

Texas > Dallas

I am an owner of oil and gas mineral properties, I own 100% of the working interests in several oil wells and salt water injection well that I need operators for and am always seeking new oil deals in South Texas, Victoria area. Prefer a partner with ability to continually raise drilling funds for new drills or acquisitions.

$10,000 to $1,000,000

Texas > Cedar Park

Finance/ financial services, Real Estate, Consumer goods. Interested in investment opportunities, preferably silent. Enjoy working and analyzing all facets of business operations. Education: BBA - Management/ Finance. MBA- Finance.

$1,000 to $25,000

Texas > Frisco

I am 41 year old married IT professional with masters in computer science degree and have 18 years of experience in IT Software development. I would like to invest some money as a silent individual investor.

$10 to $20,000

Texas > Henderson

Former CEO and entrepreneur with full P&L, strategy, and development expertise. I am seeking ownership, board, investment opportunities, the majority of my work has been in Federal Government work, but have multi- industry experience.

$50,000 to $300,000