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 > League City

CMI. Bachelor of Business Administration. Expertise in tax management. Looking for the right opportunity to make an investment.

$1,000 to $50,000

Texas > Spring

I am a 60 year old individual investor and have been married for 39 years. I bootstrapped and started up my own company 7 years ago in the Oilfield Services sector. My wife and I own 100% of an energy services company. I've been investing in Houston Multifamily real estate for almost 10 years and have several investments there. I'm also involved in 2 agriculture investments in Latin America. One in Colombia (Coconut & Teak Wood) and the other in Panama (pineapples). I've lived overseas and traveled extensively around the world for business. I'm keenly interested in the Agriculture sector.

$10,000 to $100,000

Texas > Houston

Director at major Investment Bank in Houston looking at diversifying my income base. Background is engineering from Texas A&M with an MBA from U. of Texas. Been working in banking for last six years; well versed in operational cash flow modeling (largely for oil and gas projects as a reservoir engineer). Other major passion is fitness (i.e. Crossfit/Olympic lifting) and would be partial to an investment in this space but would want some business control in this type of situation. I am also an accredited investor.

$5,000 to $100,000

Texas > Houston

I have built my engineering company over 31 years by keeping overhead low. I am a very sales focused person believing that sales are the most important aspect of any business. I have a very analytical and technical background with lots of contacts in the energy industry. I enjoy mentoring and helping others succeed.

$5,000 to $100,000

Texas > Coppell

I am a young entrepreneur turned investor. I worked in retail management for 15 years and excel in people, process and profits. I intend to be involved in any investment I make and will bring years of management consulting along with me. I am married, have a great 10 year old son that I'm extremely proud of. I have invested in 4 business in the last 2 years and am looking for a couple more to help take to the next level. I would like to have a hands on approach for anyone that I help. I appreciate the opportunity to discuss with you further.

$0 to $75,000

Texas > Mission

Eager investor with a background in luxury lifestyle PR, social media and event management. I have worked with clients such as W Hotels, COMO Hotels, Chateau D'Esclans Wines, and many other high-end restaurants, bars, design groups, etc. Experience working for two major publications in South Florida... recently relocated back to South Texas in search of new opportunities.

$10,000 to $75,000

Texas > Frisco

40 year old mortgage professional with 11 years experience in the industry and 8 years of military background. Looking to invest up to $150k.

$1 to $150,000

Texas > Spring

Extensive management experience in Fortune 500 orgainzations. Stong eye on P&L management, getting the most out of a dollar, etc...

$5,000 to $50,000