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 single and 34 years old. I live in Houston. I am an experienced energy industry individual investor looking for equity investments and drilling deals. I am currently an executive in an upstream Oil and Gas company. I am looking for a passive investment. I trust that the people I invest with know their company or opportunity better than I do.

$50,000 to $3,000,000

Texas > Houston

MBA in marketing. Currently business analyst at game development company. Seeking the next venture!

$1 to $1,000,000

Texas > North Richland Hills

I am an individual investor seeking opportunities with growth potential and long-term profitability. My investment approach focuses on providing capital while maintaining a silent/passive role rather than participating in day-to-day operations. I am interested in businesses with clear plans, realistic goals, and strong potential for expansion. I value transparency, communication, and mutually beneficial partnerships. I am interested in opportunities across multiple industries including hospitality, technology, retail, entertainment, and emerging business sectors. My goal is to build lasting investment relationships while helping businesses grow through strategic financial support. I am open to reviewing opportunities at different stages and am seeking investments that provide strong returns while allowing management teams to continue operating independently.

$5,000 to $10,000

Texas > Longview

I am a private investor looking to invest in start ups. I am 47 and single. I have many years experience in the oil business. I have a B.S. in Cellular Biology, Environmental Chemistry and 2 year degree in Instrumentation. I have invested in both private and public companies. I am looking to be a individual silent investor.

$1,000 to $100,000

Texas > Tyler

I'm 44 yrs old, married living in Tyler TX. Worked in oilfield as Drilling Fluids Eng. since 2013. Before that, worked in sales and acct mgnt in money transfer industry for 12 yrs. Background in QA/QC ISO 9000. BS in Bus. Admin. and MBA from UT 2011. Investment experience includes various securities, annuities and real estate. I'm an individual investor. Anticipated involvement would range from silent to advisory.

$2,000 to $30,000

Texas > Houston

Corporate finance associate governing operations of energy assets. Analyzes economic viability and return on investment of potential acquisitions, divestitures, and mergers. Manages corporate cash flow models to determine pro forma debt and equity funding. Utilizes relationships with major financial institutions to institute reserve based loans for multi-rig development programs. Assists in equity raising activities via private equity networks. Further experience with legal, regulatory and environmental affairs.

$250,000 to $250,000,000

Texas > Porter

I am 59, married, living in East Montgomery Co. Texas. Experience includes being regional manager of crude oil transport, tree surgeon, have ran everything from a wheel barrel and shovel to driving moving heavy equipment to overseeing multi million dollar jobs. Value adds include some people I know. Anticipated involvement: prefer silent, but willing to get involved as needed. Status: individual investor.

$10,000 to $40,000

Texas > Spring

Corporate finance and accounting professional with a personal interest in investing and entrepreneurship. Experienced in the manufacturing, chemicals and transportation industries. Interested in business opportunities that possess some distinct economic and competitive advantages. Adherent of a fundamental, value-oriented approach to valuing businesses. 32 years old, based in Spring, TX, happily married with 2 beautiful daughters.

$10,000 to $100,000