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 > Jewett

I am willing to be an angel investor! I enjoy making new contacts and being apart of succeful projects. I have the capital to invest, if the venture appears to be lucrative and love being apart of exciting turn arounds! I am always looking to help new business get off the ground, and turn a profit in the process!

$10,000 to $1,000,000

Texas > Dallas

I am a private investor looking to invest as both a passive investor and if, appropriate take an active role in growing the company.

$25,000 to $200,000

Texas > Mckinney

I am in real estate development in the North Dallas area. I look for properties that have a potential for a higher and better use.

$1 to $1,500,000

Texas > Flower Mound

Own and manage profitable business of my own and now looking to invest in other great business opportunities. Seeking mostly advisory role.

$1 to $100,000

Texas > Pearland

We are always looking for new deals.

$1,000 to $100,000,000

Texas > Houston

Business MUST be in Texas. I am an investment banker by trade. Investing in small companies since 1995.

$1,000 to $50,000

Texas > Irving

C suite executive of 12 years (fortune 1000 companies) and entrepreneur. Professional background in accounting/finance (CPA, CFA, CFP) within the private equity/investment banking/ retail banking and consumer finance industries. Bachelors in financial economics. Masters in accounting. Top 10 business school (Michigan). Passion for internet/technology and real estate. Previously had several successful web based/online ventures including websites/apps as well as real estate. All led to successful sales/exits. Prefer silent investing but willing to be involved from an advisory standpoint. Open to limited hands-on involvement. Looking for a strong operating partner with some "skin in the game". Mostly prefer to invest as an individual but also open to investing as part of a group as I have several such associations. I have grown & scaled many businesses including chains/franchises. I also have M&A background which helps with valuations/exits/acquisitions

$10,000 to $500,000

Texas > Pearland

Late 40's Male Healthcare Executive looking to invest in Gulf Coast businesses. I hold a Bachelors of Science in Nursing degree and a Masters of Business Administration degree. 20+ years experience in operating hospitals and managing multimillion budgets and hundreds of employees. I am also a musician and have experience in producing performances and events. I am interested in being an advisory to hands-on business partner and expanding into entrepreneurship.

$1,000 to $40,000