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

Semi retired. Former CEO of oil company that sold for $2.3 billion in 1980. Senior management and CEO of major and independent oil companies 57 years experience in oil and gas exploration and production Private investor

$25,000 to $1,000,000

Texas > Dallas

Personal information (50, Dallas TX.). Professional experience (Private Investor - Finance & O&G.). Other value-adds (e.g. experience, expertise, contacts, etc.). Anticipated involvement (hands-on, advisory, or silent). Status (individual investor).

$100,000 to $3,000,000

Texas > Houston

We invest in companies that have good management and a well defined market. Should the Entrepreneurs have a product that needs help to market/marketing we will fund that product quickly. We will look at type of products, remember we are looking for real deals. I am a private investor with more than twenty years experience

$100,000 to $2,000,000

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 > Austin

I am a private investor, that have some participation in seven different companies and different industries. I still interested in to invest in companies that have a good potencial and need some equity, my participation is only as an advisor

$100,000 to $2,000,000

Texas > Arlington

Hello I am a 24yr old female investor living in the DFW area. Arlington Tx to be exact. I have a silent investor in addition to myself as an investor. I have a Associates degree in Business Administration. Turns out I wanted to continue pursuing my dream as a Real estate investor. I will be obtaining my Realtor license within the next 3 mths. The more knowledge and education about what you're passionate about, like myself the more we can dominate as a well rounded team. Giving the chance to fund a project I can play any role silent, hands on etc. I am very ambitious and ready to make profits. Ready to build legacy and a trusted family of beautiful people of all kinds.

$10,000 to $100,000

Texas > Frisco

We are looking for solid investments with significant upside potential.

$100 to $1,000,000

Texas > Carrollton

Executive from the QSR industry retiring soon. Seeking investment and partners for new Fast Food concep t- QSR. Experienced former executive of a publicly traded company managing franchise and corporate store development, retail real estate acquisition and construction, and business owner. Will provide some hands on involvement in day to day operations and ultimately the overseer of business venture, growth and planning. Looking for operations business partner who would like to have an opportunity to own and operate multi-unit restaurant concept that eventually will franchise. If you have worked in a General Manager role overseeing multi units and want the opportunity to be a part owner this should interest you. Our concept is a simple to operate system with using few employees. Looking for working partner who needs funding to develop ideas to lend to our concept.

$5,000 to $300,000