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

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 $20,000

Texas > Katy

MBA, 20 years experience in Finance, Accounting and Credit in several industries. Married, living in Houston Area. Willing to help a business to grow, and grow with it!

$500 to $20,000

Texas > Farmers Branch

I am a lawyer and CPA. I worked at a CPA firm in the late 70's, and then a law firm in the 80's--- both located in Downtown Dallas. From 1989 to 1999, I was an officer of a leveraged chemical manufacturer in Pittsburgh, PA. Since 1999, I have invested in numerous businesses.

$10,000 to $50,000

Texas > College Station

Real estate investor specializing in student housing and college towns. Maintain real estate license in state of TX Private investor with current portfolio of approx 200 units. Specialize in Austin and College Station, TX markets Excellent track record and many industry connections.

$5,000 to $50,000

Texas > Houston

Have my own trucking business and want to invest if it’s God’s will

$1,000 to $50,000

Texas > Houston

I live in Houston, Texas. I have bachelors degree in business management with minors in finance and economics. I currently work as a project engineer for a nationwide construction company during the day and I also have a night job where I am a host for a company that owns 6 bars in a busy strip here in Houston. My job there is to sell sections and bottles so I am a good sales person. I’ve invested before in a smaller scale so I would like to take things to a bigger stage. I have investments in stocks and crypto but would like to step into more real estate property and tech. I could contribute a lot to a team or another individual. Don’t hesitate to contact me if you want to know more.

$10,000 to $20,000

Texas > Spring

I am an engineering/physics PhD living abroad working for a Fortune 500 company. I have worked all over the world for the oil and gas industry, but I also have significant experience in technology research, development, intellectual property and bringing technologies from lab to market. In my career I have experience pitching technologies to venture capitalists, CEOs and boards of directors. My current job will restrict my investment in the oil and gas industry, but I am open to investments in all other fields in a silent, or advisory type role.

$5,000 to $100,000

Texas > Irving

I am shrewd IT professional with a keen eye for investing. I am very pessimistic when it comes to put my money on the table so all said and done, If I am willing to invest then you surely have a good business plan. I am starting investing of personal assets for the first time but have been doing an accurate job for my company so far. I am 35 years of age, married, living in Irving, with a masters in markerting management. I would like to play an advisory role in my investments in the beginning with a gradual transition to silent in reasonable timeframe.

$25,000 to $100,000