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 > Lufkin

Over 30 years of successful Field Operations and Senior Leadership roles in the Environmental, Oil and Gas (Upstream, Midstream, Downstream), and Industrial Services Business Sectors with a Fortune 200 company (reclamation, disposal, transportation, site and field services, industrial sludge dewatering and oil recovery, EH&S, compliance, equipment (lease/rentals/cleaning & repairs). Have experience in tuck in and strategic acquisitions, structure and execution reorganizations, value proposition development and marketing, business development, strategic partnerships and start ups, Looking for opportunities to invest, advise, mentor, and grow new and existing like industry or new industry or segment opportunities.

$1,000 to $50,000

Texas > Austin

Austin, TX. Investment experience over 15yrs. Technical and Entrepreneur.

$50,000 to $10,000,000

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 > 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 > Austin

Back in 1992 we create a paper distribution company in Mexico, we sell products from the main US paper mills like International Paper, New Page, etc. this company now is one of the top ten paper distributors in the country. In 1998 we create a real state company to build warehouses for rent, today we have 20 units with more than 400,000 SF and another 4 are under construction.. In 2010 we invested in 3 different companies as a passive/active investor role, We continue to seek opportunities where to invest. We have an additional comercial company in Mexico, so we can be a distribution channel in case is required.

$100,000 to $2,000,000

Texas > Houston

Currently residing in Texas and looking to diversify my investment portfolio in the oil or oil related industry.

$1 to $25,000

Texas > Denton

Small business investor with over a decade of experience across retail and construction industries.

$1 to $100,000

Texas > Houston

Silent partner. 30 years old. MBA. Houston, TX.

$5,000 to $30,000