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 > Magnolia

Age 62; single; living in Houston area. Semi-retired Petroleum Engineer with 39 years of total experience; includes 23 years of operations and 16 years of R&D; companies worked for include major oil & gas producer, a consulting company, and a very small independent producer; still active in oil & gas consulting for drilling, completions, and production. Previous owner of small business dealing with automobile restoration. Current hobby includes restoration of automobile clocks and gauge clusters. Investment experience has been limited to managing my own retirement and 401k. I would be an individual investor and my anticipated involvement would greatly depend upon the nature of the investment and my personal comfort with those managing that investment.

$10,000 to $300,000

Texas > Carrollton

MBA - 25+ years environmental science, pharmaceutical and financial services industry experience.

$1,000 to $50,000

Texas > Spicewood

I am a Principal at a family-owned and operated asset management firm. We are actively seeking to diversify liquid investment resources into an investment in or acquisition of an early-stage operating business seeking growth capital or a more mature operating business. Principals have broad Private Equity, Operations Management, Investment Banking, Trading and Entrepreneurial experience.

$1,000,000 to $6,000,000

Texas > Richards

I am 59 years old, married, and live in a rural area between College Station and Huntsville, Texas. I have over (30) years' experience in the Oil & Gas industry where I have held executive positions as General Manager, Director, Vice President, and President as part of an International multi-million-dollar business. I have a BS in Civil Engineering from VMI. I also have executive and Six Sigma training. I am new to individual investing. I will be retiring within the next six months from my current position as President and will have time available as needed. I have numerous industry contacts and would share to the right partner. I am open to advisory or silent options. Investment would be as an individual investor.

$5,000 to $50,000

Texas > Buda

I live in the Austin area. I am a cyber security executive with my MBA. Looking to diversify my investment portfolio.

$500 to $100,000

Texas > Pearland

We are always looking for new deals.

$1,000 to $100,000,000

Texas > Mckinney

I have been involved in several businesses in the past as COO, CEO and director. I have a degree in Electrical Engineering.

$5,000 to $100,000

Texas > Austin

I am a long term marketing executive. I have been the CEO of a marketing company for the last 11 years and have grown the company into a profitable powerhouse. I hold a degree in Business Admninistration obtained in Brazil as well as a Design & Marketing degree from Texas State University. I am an individual investor who is seeking opportunities from silent to minimal involvement.

$10,000 to $1,000,000