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 > Flower Mound

Own and manage profitable business of my own and now looking to invest in other great business opportunities. Seeking mostly advisory role.

$1 to $100,000

Texas > Frisco

We rep a private investor with financing structured as a Volumetric Production Payment (VPP). A VPP is an advance payment to a producer for the purchase of oil to be delivered over a fixed 36 month term. There is a registered security interest and collateral pledge over oil reserves in excess of the amount of oil contracted to be delivered from existing, producing wells. Pledged deliveries must be from Proved Developed Production and the producer needs to show capability of delivering 150% of the pledged production. Fund will contract to purchase max of 65 – 70% of current production. No restrictions on use of funds, not subject to cross-collateralization of assets, no personal guarantees, no interest charged. Obligation of the producer is limited to delivery of the contracted # of barrels of oil agreed. For independent producers with limited access to conventional bank, mezzanine financing & private equity. For private, closely held producer grossing 150-1000 barrels oil / day.

$2,000,000 to $15,000,000

Texas > Houston

My name is Najeeb. I have been working in the financing industry since 2007. I am also experienced investor who understands your needs. I have been doing real estate since 2004. I invested with our partners in 20-55 unit apartment buildings as well as bought and sold houses nationwide. I was in the banking industry 15 years, and worked in the Main Vault. I have had an "A" rating with the Better Business Bureau since 2012. Every transaction with me is handled ethically, and professionally every single time. I started investing in real estate in 2004 starting by brokering notes, wholesaling, flipping, then purchasing commercial properties. I mentor people wanting to get started in real estate investing. I hope you will get lot of satisfaction doing business with me.

$50,000 to $10,000,000

Texas > Katy

I am married, 49 years old, and reside in Houston, TX while actively searching for a second home in Austin. Myself and 3 other partners sold 3 businesses(machine shop, distribution company, and power tool manufacturing) in 2000 and have just completed our earn out period. The entire group is searching for investment opportunities where we carry an active role in the company. We have graduates of The University of Texas, Southwestern, Ohio State and UC Irvine. Our group has experience in Automotive, Aerospace, Offroad, and Oil & Gas industries throughout the Southern and Western Regions of the US and Northern Mexico. We have all held high level sales and operational positions at major manufacturers and our own companies along the path. Distribution management is a very strong piece of our background portfolio as well as after sell service platforms.

$0 to $5,000,000

Texas > Houston

Silent partner. 30 years old. MBA. Houston, TX.

$5,000 to $30,000

Texas > Mission

Eager investor with a background in luxury lifestyle PR, social media and event management. I have worked with clients such as W Hotels, COMO Hotels, Chateau D'Esclans Wines, and many other high-end restaurants, bars, design groups, etc. Experience working for two major publications in South Florida... recently relocated back to South Texas in search of new opportunities.

$10,000 to $75,000

Texas > Houston

Private investor in Houston TX seeking to help statrups.

$0 to $50,000

Texas > Fort Worth

I'm experienced operator/founder with experience in transportation and software. I've been an entrepreneur for over ten years. I'm married and live in the Texas Panhandle. I have limited investment in public securities, my primary interest and experience is in private securities. I've participated in several private deals. I have an agricultural engineering degree from Oklahoma State and an MBA Harvard Business School.

$100,000 to $500,000