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 > Spring

I have been in the restaurant business for over 15 years, executive chef for the last 6 years. In my current position I am responsible for all new store openings, 15 to date, with training and purchases that follow. This is an opportunity to move back to CT from TX and expose a market that has been under developed with the restaurant scene.

$200,000 to $450,000

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 > Dallas

Investor living in Dallas, TX who is looking to capitalize in a variety of different markets.

$5,000 to $20,000

Texas > Addison

Interested in the Oil & Gas Industry.

$50,000 to $250,000

Texas > Plano

With 10 years of experience in the technology and science field. I hold MS. degree in science and have anticipated in sales, technology, social, b2b, training business opportunities. Willing to invest with strong business plan.

$100 to $20,000

Texas > Coppell

20 plus years in sales management in the food business, 7 years business owner.

$2,500 to $20,000

Texas > Spicewood

I am a Principal at a family-owned and operated asset management firm. We are actively seeking to diversify liquid investment resources into an investment in or acquisition of an early-stage operating business seeking growth capital or a more mature operating business. Principals have broad Private Equity, Operations Management, Investment Banking, Trading and Entrepreneurial experience.

$1,000,000 to $6,000,000

Texas > Irving

I have been an accredited investor for over ten years now and currently have investments including promissory notes, oil and gas and real estate. I am interested in private business investment and promissory notes in Texas.

$10,000 to $100,000