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

I am aged 56, IT professional with more than 35 years experience. Have Bachelor degree in Electronic and Communication Engineering and Masters in Computer Science. Has been investing in Stocks, Mutual funds, Precious metals, Real estate since last 35 years.

$10,000 to $100,000

Texas > Haslet

Looking for potential real estate deals, land development, etc.

$100,000 to $10,000,000

Texas > Abilene

I'm 34 years old, married to a wonderfully talented and ambitious woman, and currently live in Texas. Professionally, I'm an AF Officer, founder of an investment company, and angel investor. Academically, I have a bachelors in astronautical engineering and am finishing my masters in applied financial economics. I'm looking to invest in companies that want someone philosophically motivated, deeply dedicated, and looking to positively change the world. As an individual investor, I can be as hands on or off as needed and can leverage my personal network and experiences to achieve success.

$5,000 to $50,000

Texas > Dekalb

Established business looking to start new business or invest with others in a manufacturing business. Have a large vacant building with acreage to expand if needed.

$50,000 to $200,000

Texas > Grand Prairie

We are interested in growth-stage companies with a clear focus and capabale management. The ability to communicate your financial needs and the related impact on market performance is critical to our evaluation process and final decision.

$1 to $5,000,000

Texas > Austin

Age: 64 living in Austin, TX. Hospital Administrator with 40 years experience now retired. Graduate degree in Health Care Management. Experienced in all aspects of healthcare, biomedical research, medical education, IT support systems and business management software applications, learning management systems. Investments: Energy stocks. Involvement Sought: Silent partner, advisory. Extensive contacts throughout academic medicine. Status: Seeking individual investor opportunities.

$25,000 to $350,000

Texas > Austin

I am looking for opportunities to invest and potentially work in an up and coming small company primarily in the Central Texas area. I'm a 33 year old that has a degree in Finance/Economics from Texas A&M that just recently left my job as a real estate investment analyst here in Austin to work as a part time CFO/consultant on a startup with a friend of mine as well has have a little more time to manage the ranch I have some ownership in out in Fredericksburg. Both my parents have their own businesses, so I am of a highly entrepreneurial mindset and one of the main reasons I left my corporate position is to work/invest in a startup/ small business - as I would rather know my contributions really are a key asset to a business as opposed to being just a cog in the wheel. I welcome any and all good investment opportunities.

$0 to $20,000

Texas > Spring

I have been in the restaurant business for over 15 years, executive chef for the last 6 years. In my current position I am responsible for all new store openings, 15 to date, with training and purchases that follow. This is an opportunity to move back to CT from TX and expose a market that has been under developed with the restaurant scene.

$200,000 to $450,000