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 > Houston

50 years old business owner. I own an engineering and contract manufacturing company in USA and China. Education background with B.E in Mechanical engineering and B.S in Industrial Design. The strength I can bring to a project is the expertise and capability in manufacturing quality products in directly lower cost besides the funding. I'm an individual investor but able to team up investors from oversea.

$10,000 to $300,000

Texas > Cypress

Married in Cypress, Texas. Food and Beverage 8 years Oil and Gas 8 years. Bachelor's in Business and Associates in Mech. Engineering. No private investment exp so far. Looking for semi-involved and silent.

$1 to $50,000

Texas > Denton

Age:37, Status: Married, Lication: DFW Metroplex, Residing in Denton, Texas. Occupation: Investigation Specialist for Amazon corporate. Education: MBA graduate with dual specialization in marketing & HR. Experience: Tourism, Construction & Retail business. Anticipated Involvement: Silent. Status: Individual Investor

$1,000 to $75,000

Texas > Plano

I have purchased directly more than 20 companies and invested as an investor in 3 companies. As a private investor my investments have exceeded more than 1 million but prefer under a million dollars. Telecommunications background with emphaisis in financial and transitional operations.

$100,000 to $1,000,000

Texas > Richmond

I lead a Corporate Development team for a Fortune 500 company. We have a growth investing arm for emerging companies and a Mergers and Acquisitions arm. I have over 20 years experience investing in start ups and large successful companies.

$0 to $4,000,000

Texas > Coppell

I have owned and run restaurants for over 20 years and more recently started several new businesses. Real estate is a sector of investment for me and I co-own an independent Oil Company in Texas where we buy, sell and operate Oil and Gas Leases.

$10,000 to $1,000,000

Texas > Houston

I am the owner of a various different businesses ranging from beverage distribution to screen printing.

$1,000 to $30,000

Texas > Austin

I am 49 year old male. In Accounting/Finance by profession and investing successfully in real estate for past couple of years. My goal is to invest into other businesses that has potential for growth/expansion. I look forward to sharing my professional experience to ensure your success. I am open to either silent or active partnerships, investment, royalties, or loans.

$10,000 to $300,000