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 > Cypress

I am currently an individual investor that owned and operated a thriving transportation business (trucking). I since sold the business and now focus on investing. I know and understand the daily responsibilities and requirements for operating a small business. I know from experience managing cashflow, managing personnel and managing daily operations can be very challenging. With that, I have an MBA in Finance and Management Information Systems. Professional experience includes working in the Oil & Gas Industry for more than 19 years. I have non- residential experience in multiple countries including Brazil, Argentina, Singapore, The Netherlands and the United Kingdom. I have invested in a diverse range of businesses including a game development company, a transportation company and real estate. My anticipated involvement depends on the business opportunity, which would be in either a silent or advisory capacity. My focus is taking a long term view that balances Returns and Growth.

$10,000 to $100,000

Texas > Austin

I have extensive background in law enforcement and the livery industries in TEXAS. I am looking for investment opportunities to diversify my financial growth and wealth. In these hard times I feel that this is a good time to invest for the future of my daughter whom I will leave it all to... I want to ensure there is something worth leaving.

$1,000 to $500,000

Texas > Houston

I am an individual investor and a real estate investments specialist with financing and private funds in place ready to adquire minimum three iincome producing properties per year. Currently $800,000 multi-family portofolio, expansion and diversification is THE GOAL.

$30,000 to $3,800,000

Texas > Houston

I am a fifty nine year old, married engineer and entrepreneur with about 37 years experience out of which 19 of them have been in Chief Executive positions. I studied Civil Engineering at graduate level, Environmental Engineering at Master’s level and Business Management at Ph.D. Presently, doing engineering consultancy and construction. I am interested in hospitality businesses, technology and real estate in advisory or silent positions as investor.

$5,000 to $350,000

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 > Sugar Land

I am looking for investments related to Water Treatment, Chemical Engineering or Petroleum. Being an entrepreneur myself can contribute with business and technical expertise in some of those areas. I hold a B.Sc in Chemical Engineering and MSc in Petroleum Engineering. Fluent in Spanish. I am looking for a hands-on involvement at least at the beginning.

$0 to $50,000

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 > Houston

Actuary

$1,000 to $20,000