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 > Dallas

I am a Real Estate investor I have invested in Residential and commercial projects and I am looking for other projects at the moment to invest in

$100,000 to $200,000

Texas > The Woodlands

Looking for opportunities in the LED lighting or Energy Service Company (ESCO) areas. We are currently expanding in the US and Mexico.

$0 to $5,000,000

Texas > Austin

I represent a married couple who have established a company specifically to invest in startup or existing small to medium sized businesses. Our goal is to assist the entrepreneur with seed capital to start or expand an existing business. We search for local innovative businesses located in the central Texas area and anticipate an advisory to silent investment role.

$10,000 to $500,000

Texas > Webster

I work with many investors and brokers. I find investment properties for them.

$50,000 to $1,000,000,000

Texas > Frisco

Married couple in Collin County, Texas. Successful business owners with a Plumbing Service Company and a Mortgage Company. Currently have funds sitting in Roth IRA's that need to start making money. Silent or Advisory. Individual investors.

$2,500 to $20,000

Texas > Kemp

Working on behalf of Attorney at Law facilitating financial transactions,

$1,000,000 to $10,000,000

Texas > Houston

56 year old married investor in Houston Tx. Current investments include rental properties in Tx,NC, and CT. Have previously invested in franchises. I have some investments I devote significant time to while others I am totally hands off. I have been involved in energy trading/brokering my whole career but have more time on my hands now that my children are older. I am looking for opportunities where I can add my business acumen and or cash to help company growth. I will travel for the right venture.

$25,000 to $100,000

Texas > Spring

Married with a baby boy born July 5th, 2018. I'm 36 years old with a Mechanical Engineering degree and an MBA from UT (graduated on deans list in 2012). After the MBA I've worked in mergers and acquisitions in the energy industry with emphasis on valuations. Prior to the MBA I worked in Aerospace. I have a long history of working with start-ups and managing investments. I currently own 11 rental units in the Houston area and self-manage a portfolio of stocks.

$1,000 to $15,000