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 > Burleson

I am soon to be 74 years old and I've been married for 54 years to my high school sweetheart. I currently live in the Dallas/Fort Worth Metroplex. I am retired, but I spent over 40 years in the oil and gas industry. My last position was as a regulatory specialist and training developer with a staff of 3. My last major project was a year-long effort to build a tracking system for regulatory issues for field personnel who are scattered from South Florida to California and from Larado to Indianapolis. I was assisted by a contractor who interpreted my input regarding regulatory requirements for the program developers building the back end. I am an accredited investor with significant funds available. My involvement in any given investment will be silent in most cases.

$5,000 to $25,000

Texas > Arp

I'm 34 years old, with a wife and 3 young children. I'm an economist by education and have been a financial software developer for the last 11 years. I'm in the process of transitioning to running a 50ac fruit farm in East Texas, in the hopes that I can generate a sustainable venue/u-pick farm. In addition, I've been a derivatives trader for the past 15 years and am looking to transition out of that market and into investments that involve real businesses. My goal is here is to pursue a diversified portfolio that cash flows ~25% returns annually.

$5,000 to $50,000

Texas > Friendswood

Over 10 years of management experience. Looking for worthy investments.

$50,000 to $300,000

Texas > Spring

Extensive management experience in Fortune 500 orgainzations. Stong eye on P&L management, getting the most out of a dollar, etc...

$5,000 to $50,000

Texas > Eden

I am 31-years-old and interested in getting into the investment arena. I have been a gov't intelligence analyst for the past 9 years, but have recently quit my job, so I could move back home to spend some time with my father before he passes away. Needless to say, my life style has changed from what I am used to and am looking for a way to supplement my new lower income.

$20,000 to $40,000

Texas > Houston

20 years experience in Corporate America, 12 years in Private Start Up Businesses. Successfully started, grew, and sold 2 small businesses to Global Companies. Extensive knowledge of all Major Industrial Market Segments. Strong background industrialization, manufacturing, and commercial.

$50,000 to $500,000

Texas > Addison

I'm heavily involved in renewable energy at the moment. Have been involved in real estate in the past and started to look back into it. Depending on the opportunity, might be interested in helping the organization beyond a dollar contribution.

$100,000 to $150,000

Texas > Pearland

I am a 46 year old retired military veteran. I live with my wife here in Houston, Texas. I have served in a leadership position for many of years and I would like to offer my experience of organizational skills to your business. I have a Bachelors Degree also in Management. I am looking forward to being an asset to the company financially and as an advisor. My status would be as an individual investor.

$10,000 to $20,000