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 > Irving

Married, living in Dallas Texas, did my masters and interested in private investing.

$50,000 to $200,000

Texas > Fort Worth

I have worked in the Manufacturing and Oil & Gas industries for 10+ years as a consultant and product developer. I am the founder of an 8 year old software company. Individual investor.

$1,000 to $100,000

Texas > Houston

Senior-level experience in IT industry. Individual investor.

$10,000 to $100,000

Texas > Sugar Land

I'm 40 years old and work as a global sales VP for a multinational technology company. I've worked in 6 different countries across the world, in different management roles. This diverse experience has given me the business acumen to guide other upcoming business leaders who are starting on their journey to lay the seeds of giant corporations of the future. I'm an individual investor who is looking to invest in return for equity and will maintain an advisory role, however I wouldn't shy away from hands-on involvement if its needed.

$10,000 to $200,000

Texas > Irving

IT Consultant looking to invest and retire early.

$0 to $500,000

Texas > Austin

Experienced investor and entrepreneur passionate about partnering with businesses and helping them expand. Access to both high net worth and institutional capital. Extensive resources to devote from our private equity company. My two partners and I built a vertically integrated real estate private equity platform from the ground up which grew from 0 to closing a 100M fund within 3 years. Now diversifying into corporate VC/PE and raising a second larger RE fund only 5 years from inception. MBA from University of Texas with a concentration in finance and entrepreneurship and a broad range investment experience. Excited to hear about your venture and help you grow.

$500,000 to $10,000,000

Texas > Houston

Seasoned entrepreneur in all industrial sectors. I have also spent 15+years working for the largest industrial conglomerates in the world.

$50,000 to $350,000

Texas > Bacliff

I have worked as engineer and entrepreneur and investor since 2004. After taking a break since 2008 and resume slowly back in 2011, I am currently trying to be more active in investing. So present to me your opportunity and we can make it happen.

$19,000 to $30,100