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 > Frisco

I am a 49 year old married working in the Tech industry (with an engineering background in Computer Science) for the past 20+ years. I am interested in investing in either startups or ideas that have a potential growth. If the idea really interests me, I might be interested in hands-on, advisory role.

$1,000 to $50,000

Texas > Whitehouse

Actively practicing Physician with successful Practice. Masters in Health Care Management thru UTD with particular interest in Patient Experience and Physician Coaching. Lectures provided to Hospital and University groups on Emotional Intelligence -- content applicable to many industry settings. Prior Active Duty service (Desert Storm / Shield), happily married for 25 years. I am an individual investor seeking a Silent to Advisory role opportunity.

$10,000 to $100,000

Texas > Spring

I'm a young investor with available capital looking to invest in profitable ventures. Graduated with a BBA in Finance from The University of Texas at Austin, hook em' horns. Willing to get completely involved in an opportunity or remain a silent partner.

$1,000 to $500,000

Texas > Jewett

I am willing to be an angel investor! I enjoy making new contacts and being apart of succeful projects. I have the capital to invest, if the venture appears to be lucrative and love being apart of exciting turn arounds! I am always looking to help new business get off the ground, and turn a profit in the process!

$10,000 to $1,000,000

Texas > Austin

I have a background in Finance, analytics, and sales. I'm a fairly structured investor with a thorough understanding of business strategies alongside with the acumen to understand complex business models. At the same time, I'm able to synthesize and value the importance of qualitative inputs that go into making a business successful (primarily the people).

$1,000 to $200,000

Texas > Houstpn

Professional oil and gas investor.

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

Texas > Frisco

We rep a private investor with financing structured as a Volumetric Production Payment (VPP). A VPP is an advance payment to a producer for the purchase of oil to be delivered over a fixed 36 month term. There is a registered security interest and collateral pledge over oil reserves in excess of the amount of oil contracted to be delivered from existing, producing wells. Pledged deliveries must be from Proved Developed Production and the producer needs to show capability of delivering 150% of the pledged production. Fund will contract to purchase max of 65 – 70% of current production. No restrictions on use of funds, not subject to cross-collateralization of assets, no personal guarantees, no interest charged. Obligation of the producer is limited to delivery of the contracted # of barrels of oil agreed. For independent producers with limited access to conventional bank, mezzanine financing & private equity. For private, closely held producer grossing 150-1000 barrels oil / day.

$2,000,000 to $15,000,000

Texas > Azle

I represent a large financial firm that is the sole investment manager for a large investment fund, we specialize in investing in non-asset producing infrastructure. On approved projects and credit, we can fund a 100% cost of the investment up front with full funding available as early as 45 days. We also offer debt equity investment loans, where we can pay you back any capital you already have into the investment. Also we do not require any return on the investment for up to 1 year to allow the infrastructure to be built and begin producing capital. We can offer the lowest interest rates on the market, and can structure the agreement to appear off your companies balance books. Our company has been in the Financial Investment Market for over 35 years and have worked with some of the largest companies in the United States.

$10,000,000 to $5,000,000,000