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

I am a 59 years old, married and have been living in Austin, TX for the past 35 years. I was one of the organizers in the formation of an insurance holding company that raised over $10,000,000 through a blue sky offering in Arkansas and Iowa. We started a Life and Health insurance company that was eventually sold for over $35,000,000.

$5,000 to $30,000

Texas > Houston

29, Male, Houston. Project Manager in the Engineering, Procurement, Construction of Oil and Gas Midstream and Downstream Facilities. My background is in manufacturing and rotating equipment. Mechanical Engineer. MBA from a Top School. Individual investor. Looking for investment opportunities preferably in my area of my expertise, but I'm also interested in expending to other areas. I'm interested in hands onand advisory opportunities. If you have a good opportunity, then I will consider being silent.

$10,000 to $100,000

Texas > Dallas

Graduated from the McCombs School of Busines (University of Texas) with a major in Finance in 2005. I was recruited from school to work for Bank of America's Corporate and Investment Bank evaluating/underwriting large corporate debt deals - mainly focused in the FI and government space. Was employed with BofA for nearly 3 years, before leaving to a competitor. I'm still involved in the large corporate underwriting group with a wider industry focus, including tech, service, hospitality, apparel, information processing, and some retail. My role also entails close workings with the relationship manager (banker), including evaluating economics of potential new deals, networking, etc. I've been in my current position for 2 years. My investment history includes personal management of my brokerage/retirement funds as well as financing a few independent businesses through my college network. Private Investor

$5,000 to $200,000

Texas > Houston

I am the chief investment officer of a new private equity group which has been backed by a former CEO of a fortune 500 company. We are looking for private investments across all asset classes that possess consistent sizable cash flow ($250,000 to $3,000,000). I studied petroleum engineering at Louisiana State University & energy economics at Rice University's Baker Institute, so energy investments are more familiar, but all asset classes will be evaluated. In addition to this, I swing trade commodities & equities in my personal portfolio.

$250,000 to $5,000,000

Texas > Houston

I represent a group of private investors who will fund just about any viable project.

$5,000,000 to $1,000,000,000

Texas > Houston

38 years old. BSc/MSc in Maritime industry. Have/is working in Senior role in Offshore industry specialized towards South America and offshore vessel industry. Wide network in the offshore industry accross the Americas and Europe in particular - some in Far East. Looking to invest in a variety of companies which can show a competitive edge.

$1,000 to $200,000

Texas > Houston

I am married for 10+ years and stay in Houston area. I am in Senior Management and Executive roles for 20+ years and still have a full-time likewise job. I am looking for all the 3 options mentioned below as long as they are profitable: 1) Passive/ Silent Investor run by optimal team, 2) Semi-passive investor/ advisor to entrepreneurial companies that need advice, 3) Buy businesses/manufacturing units that can be set-up appropriately and then either run by me or through other hires.

$0 to $120,000

Texas > Coppell

I have owned and run restaurants for over 20 years and more recently started several new businesses. Real estate is a sector of investment for me and I co-own an independent Oil Company in Texas where we buy, sell and operate Oil and Gas Leases.

$10,000 to $1,000,000