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'm a prior US Army officer turned entrepreneur looking for investment opportunities. After military service time, I spent a number of years working in more traditional jobs in industries ranging from pharmaceutical sales to overseas government contract work. I then started businesses in the home services sector that have grown to the point where I have the time and resources to explore new opportunities. I consider myself something of a generalist with a broad skillset that has lent itself very well to growing businesses. I would like to have an advisory role in any investment I would participate in.

$10,000 to $300,000

Texas > Sugar Land

Sales and marketing background. Private investor.

$1,000,000 to $15,000,000

Texas > Fulshear

Retired business owner, age 80, married 54 yrs. in the general West Houston area. Started a small manufacturing company in 1986 which is now run by my son. Business is steady with slow growth as we are in a niche market. Education. post graduate studies. An independent designer of restaurants and retail operations for 15 yrs in Houston before starting my company. I am an individual investor looking to help great ideas become reality.

$1,000 to $20,000

Texas > Spring

10 Years in Construction and Real Estate Development, BA Construction Management.

$0 to $20,000

Texas > San Antonio

I am 49 year old male that has held numerous operational financial leadership positions; currently Chief Financial Officer for a healthcare system. I have strategically been able to take the organization from losses to profitability in a very difficult industry. I have a CPA and MBA. I personally invest successfully in real estate and am planning to expand into other business models and ventures. I look forward to sharing any valuable experience I have learned with you to ensure a collaborative success. I am open to either silent or active partnerships, investment, royalties, or loans.

$1,000 to $200,000

Texas > Houston

I am married with one kid. I live in Houston Tx and I am a former basketball player from the University of Houston also an ex professional athlete. I played basketball overseas and in the NBA G League. I am now a basketball coach and teacher, I also own multiple websites. I have 5 years of investment experience and I have a lot of contacts with professional basketball and football players. I’m looking to be a silent investor but it just depends on the project. I am a individual investor.

$25,000 to $50,000

Texas > Dallas

I am a serial entrepreneur with Fortune 500 experience in the Healthcare and Tech space. I have led companies to INC 500 awards, YPO status and a successful PE exit for my investors and I. As an MBA, start-up founder, leader in a large corporation, and leading operations around the world I have a wide breadth of experiences. I have significant skills and expertise in strategy, building scalable operations, operations management, M&A, data analytics and IT.

$25,000 to $500,000

Texas > Houston

Director at major Investment Bank in Houston looking at diversifying my income base. Background is engineering from Texas A&M with an MBA from U. of Texas. Been working in banking for last six years; well versed in operational cash flow modeling (largely for oil and gas projects as a reservoir engineer). Other major passion is fitness (i.e. Crossfit/Olympic lifting) and would be partial to an investment in this space but would want some business control in this type of situation. I am also an accredited investor.

$5,000 to $100,000