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 > Beaumont

An investor seeking the right business plan to invest in.

$50,000 to $200,000

Texas > Frisco

I am 41 year old married IT professional with masters in computer science degree and have 18 years of experience in IT Software development. I would like to invest some money as a silent individual investor.

$10 to $20,000

Texas > Houston

I'm an experienced 20-year legal and commercial professional having worked for major corporations to provide support and direction around strategic planning, negotiations and contracting, and risk management and compliance. I hold a B.S. in Accounting, MBA and law degree. I'm experienced in various investment structures and growth models, so as I transition out of Corporate America I would like to take a more hands-on or advisory role with startups, small and midsize companies with great growth potential. I'm currently handling these investments as a individual investor, however I intend to quickly move it to an investment group.

$1,000 to $350,000

Texas > Helotes

Age 61, married 33 years, specialty contractor, advisory or silent investment preferred.

$25,000 to $3,500,000

Texas > Mckinney

Cofounder of Real Estate Investment Firm. Family Man with Family Values. CFA Charterholder. Golf, Baseball, Boating.

$5,000 to $200,000

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 > Austin

- Founder and Managing Member of Investment Firm since 2024 - Bay Angel Deal Flow Committee since 2023 - Active Angel Investor since 2022 - Active investor in public equity since 2015 - 10+ years of industry experience in chip design/semiconductor with Apple and IBM - 20+ patents related to AI and semiconductor design - Education for MS in USC; value investing executive program in Columbia Business School

$10,000 to $50,000

Texas > Dallas

Lawyer working in Dallas looking for investment opportunities.

$1,000 to $50,000