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 > Austin

The investor is a natural person whose individual gross income (excluding that of spouse) exceeded $200,000 in the last two calendar years, and who reasonably expects individual gross income exceeding $200,000 in the current calendar year; or for such periods, the combined income of the investor with spouse exceeded and is expected to exceed $300,000. Has net worth in excess of $1,000,000, or had and expects to have a gross income (not including spouse's income) for the last two years and the current year in excess of $200,000, or for such periods, had and expects to have all gross income including that of a spouse in excess of $300,000.

$100,000 to $1,000,000

Texas > Frisco

SOONER OR LATER EVERY BUSINESS WILL NEED TO RAISE ADDITIONAL CAPITAL Our Network is ready. We specialize in providing capital through creative programs for privately held corporations, we work with institutional lenders and investors, as well as private individuals in arranging innovative financing programs for active businesses with profit potential ( WHETHER CURRENTLY PROFITABLE OR NOT ) and for new ventures. Because of our active involvement with our clients and our access to investment funds, we are often able to solve problems and arrange financing when conventional sources are unable or unwilling to extend additional credit or funds.

$50,000 to $3,000,000

Texas > Katy

O&G engineering field and real estate investor looking for silent or local hands- on investment opportunities.

$0 to $100,000

Texas > Fulshear

Retired business owner, age 80, married 54 yrs. in the general West Houston area. Started a small manufacturing company in 1986 which is now run by my son. Business is steady with slow growth as we are in a niche market. Education. post graduate studies. An independent designer of restaurants and retail operations for 15 yrs in Houston before starting my company. I am an individual investor looking to help great ideas become reality.

$1,000 to $10,000

Texas > Haltom City

Age 49, married, 3 children, N.Texas. Business owner. Some college. Successfully started and run several companies. Hands on, advisory. Individual investor.

$0 to $50,000

Texas > Selma

I'm a Real Estate Investor with some experience in oil and gas joint ventures in Oklahoma, Texas, & North Western United Satates. I have 11 years of Venture Capital funding experience and can set up a joint venture with my partners to access a larger pool of funds if the right opportunity presents itself.

$2,000 to $25,000

Texas > Fort Worth

I represent a network that will review and consider ALL viable projects.

$10,000 to $10,000,000

Texas > Houston

40 year old single male in Houston. Professional in Oil and Gas looking for new opportunities. Individual investor with Masters degree and 8+ years international experience.

$1,000 to $200,000