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 > Edinburg

I represent private investors, JV's, private lenders, investment banks Types of Projects: Start-ups, Property Development, Manufacturing, Vehicle Dealerships, Hotel/Motels, Holiday Resorts, Spas, Emergency Funding.

$250,000 to $600,000,000

Texas > Pasadena

Private investor and experienced advisor interested in increasing the wealth your business is capable of generating. I am looking for business owners with the knowledge and drive to go to the next level, who need funding and financial acumen. Twenyfive years experience in investments and finance up to $500 million.

$100,000 to $500,000

Texas > Coppell

I am 33 years old married guy who just moved to Dallas area. Trained and worked as scientist/immunologist for last 8 years, I am now building up my hobby as a real estate investor. I am seeking new opportunities to invest in any business that would be profitable. I can be a silent, advisory or a hands- on guy.

$5,000 to $50,000

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 > Houston

Senior Financial Manager, MBA, in mid 40's with over 20 years experience with Fortune 100 companies. Individual investor with significant option trading experience.

$10,000 to $50,000

Texas > Irving

I am a IT professional and I have experience running my own successful business ventures. I am looking to diversify and invest the surplus I have into business opportunities which will create passive income for me. I don't have enough time to run an additional business on day to day basis. I would be interested in investing in a gas station,liquor shop,retail fast food chain, or real estate. Apartment units is also a good choice Only experienced people will be considered.I am open to invest my time as a advisor or passive partner whereby my experience and contacts can have a mutual benefit.

$100,000 to $800,000

Texas > Dallas

30 year experienced entrepreneur, funded over $500M+ in transactions, through offices in 20 countries around the world.

$100,000 to $5,000,000

Texas > Round Rock

I am a successful entrepreneur, actively involved in the day to day operations of one of the largest bulk mailing companies in central Texas. My investment history is limited to stock trades and similar broker assisted deals. I am currently seeking a more active role in exploring investment opportunities, particularly those afforded to accredited investors only. Currently, I am investing as a private investor, although I belong to a informal group of potential angel investors in our area.

$5,000 to $50,000