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 > Katy

Global change agent transforming organizations and leaders. He assesses and develops top executives and high potential talent to ensure performance, engagement development and retention. He works with senior executives on talent and organizational effectiveness. Currently he serves as Global Director of an Executive Talent Management firm. As a global change agent, I have architected global talent management and organizational performance strategies and processes for high performing organizations around the world to include companies like: Saudi Aramco, Nordstrom, Pearson Education, Wells Fargo and the U.S. Government. I am 49 years old and married with an Executive MBA from the University of Iowa and a PhD from Capella University. Currently an individual investor looking for a great project with great leaders who need funds to start, expand or enhance a current business.

$1,000 to $50,000

Texas > Laredo

I have 28 years of experience in the automotive market as supplier in assembly plants in Texas and Mexico and I'm looking for a new Business with verifiable profits

$100,000 to $200,000

Texas > Dallas

Have invested in multiple small startups. I am a full stack software engineer with a degree in electrical, electronic and communications engineering. Individual investor.

$5,000 to $150,000

Texas > Dallas

I am an ex-professional baseball player (minor league level only) that has been in medical sales as well as help a family business. I have a Finance degree from TCU and am looking to invest in something that I know that I would have a passion in. I a very new at angel investing, but know that I have to start somewhere. I have intuition and ready to learn something new.

$500 to $25,000

Texas > Missouri City

We are growing oil and gas company would like to diversify our profits into other types of business at a low level. Attractive proposals would be considered

$10,000,000 to $20,000,000

Texas > Fort Worth

I'm 31 married and live in fort worth tx. I am in the oil and gas service side of business and real estate. I'm always looking for good opportunities to invest and also starting up a new Oilfield service company.

$5,000 to $40,000

Texas > Austin

I am a long term marketing executive. I have been the CEO of a marketing company for the last 11 years and have grown the company into a profitable powerhouse. I hold a degree in Business Admninistration obtained in Brazil as well as a Design & Marketing degree from Texas State University. I am an individual investor who is seeking opportunities from silent to minimal involvement.

$10,000 to $1,000,000

Texas > Wichita Falls

My name is Tim, I’m an investor living in the Corpus Christi area, I recently moved to Texas after working for an Automotive company in Silicon Valley for years. I got my degree in Mechanical Engineering at the University of South Alabama, and have loved engineering ever since. As time has gone on, I’ve gravitated also towards business, and have a passion for both. I was lucky enough to be a part of a successful quickly growing company and made my investment money from our growth around the world. Now, I enjoy working with companies in that exciting and early stage!

$10,000 to $400,000