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

I am originally from Gabon in Central Africa, my family and I moved to France when I was three years old for business matters. Entrepreneurship has always been a dream of mine from witnessing my Dad multiple and diverse. Therefore, I went to the University of Technology in Roanne, France where I got my degree in Technology in Industrial Logistics, Quality, and Organization. At the end of my program, I was awarded the Young Creator of a National Production Unit in 2007. Due to my business ambition, I decided to broaden my skills by adding international market language, English. So, I moved to Houston, Texas (US) to go further into my education. In 2014, I earned my bachelor’s degree in Supply Chain Management from the University of Houston- Downtown. Consequently, I got into coffee about six years ago when I started working for a coffee manufacturing plant in Houston. I was not a huge coffee drinker but after seeing what it takes to get a single cup of coffee - I wanted to be an actor.

$100,000 to $1,000,000

Texas > Webster

I am a single, 55 yr old businessman based in Houston,Texas that has worked primarily in music and entertainment for 30 yrs. I've made several investments in entertainment over the years and am now looking to invest in diversification through my financial services company. I am looking for large investments that will not require my micromanagement but hopefully can develop a good professional relationship. I now have broad investment interests and will invest in start-ups and more.

$10,000,000 to $50,000,000

Texas > Houston

I have excellent experience advising, managing, structuring, and launching businesses. I'm excited to hear your story and see what we can accomplish. I can be hands-on, silent, or maintain an advisory role.

$5,000 to $200,000

Texas > Harker Heights

Private investor, no investment experience/history, started successful business from nothing and it produces oustanding returns so there's money left to invest in other vehicles.

$10,000 to $50,000

Texas > Dallas

I have started built and sold a retail company with numerous locations. Have taken struggling companies to profitability. I have an understanding of marketing, merchandising, pricing, price negotiation as well as the wholesale/retail space. Have just moved back to the DFW area full time and looking to find a partner to grow a business with.

$1,000 to $100,000

Texas > Shavano Park

I am married with 3 children and we live in North San Antonio. I work for a family business, and am looking to use our profits to diversify into other markets. My first interest is construction/real estate, but I am open to other business opportunities as well. I attended Baylor University and received my degree in business. I like to be somewhat hands-on and hopefully we can meet in person.

$25,000 to $1,000,000

Texas > Austin

Austin, TX investor Background in engineering also studied finance, business, leadership. I have profitably invested in real estate and private business. I am an individual investor and also have access to investment groups. I am interested in investing in businesses that are existing, have revenue and cash flow. I don’t invest in ideas or brand new start ups and I am not interested in lending money at a fixed rate. I can invest up to $25k per deal and I prefer an equity position.

$1,000 to $25,000

Texas > Montgomery

48 year old and married living in the Lake Conroe area of north Houston. I have been in sales and sales management for 23 years and currently manage a group of 10 with revenues of $26 Million. I have a BS from Texas A&M University.

$1,000 to $50,000