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 the chief investment officer of a new private equity group which has been backed by a former CEO of a fortune 500 company. We are looking for private investments across all asset classes that possess consistent sizable cash flow ($250,000 to $3,000,000). I studied petroleum engineering at Louisiana State University & energy economics at Rice University's Baker Institute, so energy investments are more familiar, but all asset classes will be evaluated. In addition to this, I swing trade commodities & equities in my personal portfolio.

$250,000 to $5,000,000

Texas > Mckinney

Cofounder of Real Estate Investment Firm. Family Man with Family Values. CFA Charterholder. Golf, Baseball, Boating.

$5,000 to $200,000

Texas > San Antonio

Hello! We are a married couple based in San Antonio. We are both veterans at large media companies. I now work at a marketing agency start-up. Recently I was able to flip my project, a consumer media website, from a net loss of $60,000+/month one year ago to profitable. It came from developing and executing strategies in media,marketing and e-comm, which also led to more ad sales. I would be fair to say that we bring media and marketing expertise. Does a business need help with a media or marketing strategy? Do they need press coverage? A website? SEO strategy? These are areas where we could be more hands on, if that is appealing. I have a masters degree in journalism and my wife has an undergrad degree in journalism. We’re both strong communicators (my wife is also native Mexican and bilingual) and love connecting with new people. We are happy to help however we can, whether through silent investment, or tapping into our experience, skills and networks to help drive growth

$1,000 to $25,000

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 > Tomball

I am a single individual investor with a broad W2 experience in oil and gas, construction, and restaurants. I am currently working 112 hours a week in the oil field with money I would like to grow exponentially with ideally silent ownerships and recurring interests. I live in Houston but work in Midland.

$5,000 to $25,000

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 > Mckinney

60 yrs old, married, based in McKinney TX. 38 years energy industry experience. BBA-Finance Texas Tech University. Advisory role. Individual Investor.

$50,000 to $500,000

Texas > Pearland

We are a unique "solutions provider" of Commercial Lending Programs for Niche, Non-Traditional, Un-Bankable, "Out-of-the-Box" and "Time of Essence" Projects, for Commercial Real Estate Investors and Developers, Business Owners, (new and existing), Non-Profit Organizations (including Houses of Worship), and Ambitious Entrepreneurs.

$500,000 to $50,000,000