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 > Plano

Working as a IT professional. Want to invest in a secure returns business and get involved in the business. The business should be innovative and creative and should have a need in the market. Don't want to be part of huge competitive industry.

$25,000 to $100,000

Texas > Colleyville

Multiple Acquisitions buy & sell side MBA 15 years Corporate Exec

$500,000 to $1,000,000

Texas > Pearland

We understand that there is no such thing as “one size fits all” when it comes to your business needs. That’s why we’re committed to partnering with you to provide a financial solution best suited to your distinct business challenges. We can provide $250 and up in just a few days, with both fixed and flexible repayment options. We make funding easy, enabling you to remain focused on day-to-day business operations and opportunities to grow your business.

$5,000 to $900,000,000

Texas > Cedar Hill

Live in North Texas. Would like to be hands on. 50 Years Old. Have Cash.

$0 to $2,000,000

Texas > Mckinney

31 year old family man from McKinney, TX. I have 2 small children and a wife. I have spent most of my career as a consultant for ERP systems (business management/financial system). I would love the opportunity to help grow a business with funds or utilizing my skill set.

$10,000 to $50,000

Texas > College Station

Real estate investor specializing in student housing and college towns. Maintain real estate license in state of TX Private investor with current portfolio of approx 200 units. Specialize in Austin and College Station, TX markets Excellent track record and many industry connections.

$5,000 to $50,000

Texas > Houston

I am a 42 years old self employed individual investor living in Houston Texas and married with 2 kids. Worked as a field engineer in oil and gas drilling industry for 8 years. I traded the stock market and have engaged in couple of investments.

$25,000 to $100,000

Texas > San Antonio

In the past as head of investment banking in a big international financial group arranged financing for medium and big corporations. Actually leading a private equity fund to invest in start ups in Texas

$100,000 to $1,000,000