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 > Detroit

Founder and chairman of venture/mentor capital firm. A former professional hockey player, venture capitalist and renowned entrepreneur. An early entrant to the cleantech market. My efforts have garnered global recognition his companies awards include Time Magazine's "Best Inventions" award and was awarded the Wall Street Journal's "Technology Innovator" and the World Economic Forum's "Technology Pioneer" awards that same year. Was also named a "Young Global Leader" by the Forum.

$50,000 to $10,000,000

Texas > Houston

Former teacher turned energy consultant. Looking to be a silent investor. Not looking for a specific industry. Open to all.

$10 to $50,000

Texas > Georgetown

40 year old entrepreneur in the floral design and wedding industry. 15 years of retail floral shop/ small business ownership. Sold business. Interested in new opportunities to invest in other TX based small businesses.

$5,000 to $100,000

Texas > Henderson

Former CEO and entrepreneur with full P&L, strategy, and development expertise. I am seeking ownership, board, investment opportunities, the majority of my work has been in Federal Government work, but have multi- industry experience.

$50,000 to $300,000

Texas > Angelica

New investor, just looking to put my money to good use and get a better return than CD rates and safer than stocks. Engineering background. Private investor.

$5,000 to $50,000

Texas > Tomball

My name is Yessenia and I was raised between Latin America and the United States. I own a direct pay clinic in Southeast Texas. I am looking to network with other entrepreneurs to share ideas, projects for new lucrative startups or business. I have a solid understanding of budgetary fundamentals, grant seeking and other financial matters. Also, I would be willing to invest and work for the project if both parties think we can benefit from each other.

$1,000 to $200,000

Texas > Arlington

I deal almost exclusively in the private capital market with capital options to support most projects. In addition, I support Sponsors in preparing preliminary underwriting models and securing necessary market data to prepare a pitch deck appropriate to secure financing. Services: Capital Broker; Project Consultancy. Affiliations: Legal and Title (Texas only). Experience: New Construction, Acquisition, Value Add - MF, Mixed Use, Office, Self Storage, Industrial, Agricultural, Resort, Hotel, Special Purpose. Area: North America/Central America/Brazil/Middle East.

$250,000 to $250,000,000

Texas > Cedar Park

Finance/ financial services, Real Estate, Consumer goods. Interested in investment opportunities, preferably silent. Enjoy working and analyzing all facets of business operations. Education: BBA - Management/ Finance. MBA- Finance.

$1,000 to $25,000