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

Have my own trucking business and want to invest if it’s God’s will

$1,000 to $50,000

Texas > Katy

Currently a VP of a publicly held Houston based oil company, looking to invest personal capital in energy, E&P, real estate, ranching, aviation, tech, etc. Willing to take a silent/passive, advisory, or operational position depending on the opportunity. Willing to travel.

$10,000 to $150,000

Texas > Richmond

I lead a Corporate Development team for a Fortune 500 company. We have a growth investing arm for emerging companies and a Mergers and Acquisitions arm. I have over 20 years experience investing in start ups and large successful companies.

$0 to $4,000,000

Texas > Pearland

We understand that there is no such thing as “one size fits all” when it comes to your business needs. That’s why we’re committed to partnering with you to provide a financial solution best suited to your distinct business challenges. We can provide $250 and up in just a few days, with both fixed and flexible repayment options. We make funding easy, enabling you to remain focused on day-to-day business operations and opportunities to grow your business.

$5,000 to $900,000,000

Texas > Austin

Successful, entrepreneurial-minded investor with a keen eye for growth potential. Willing to consider any proposal where the numbers make sense. Endless contacts across various industries and also access to many high net worth investors.

$10,000 to $100,000

Texas > Dallas

Work in the area of Occupational Health and Safety. Looking to invest as an individual investor in Texas.

$0 to $100,000

Texas > Austin

I am currently a Partner in a Boutique Investment Bank based in Austin with my business partner a fellow CPA based in Houston. We provide the following services to our clients: 1) Capital Raising Services: helping clients to secure funding: Debt, equity, traditional, alternative from private and public sources. All industries. US and Canada, South America, Australia in particular via IPO or RTO. 2) Investor Relations Consulting: developing the pitch deck, information memorandums. 3) Business Acquisition Consulting: investment analysis, economic modelling, valuations and due diligence 4) Fractional CFO Services: Financial Planning & Analysis, P&L analysis, cash forecasting, budgeting & forecasting. We currently have clients in a number of different industries including: Oil and Gas, Resources, Clean Tech, Real Estate, Staffing, Medtech, and Technology. I have previously been a Co-Founder of a start-up Oil and Gas company which we successfully completed an IPO.

$0 to $100,000,000

Texas > Dallas

I have over 15 years in technology, commercial real estate, and crude transportation. I have co-founded multiple start-ups over the past 10 years valued at over 100m including his latest exit from a West Texas fast casual restaurant chain. I currently sits the Board of Directors and/or advises for Shop for bags, Hedgechatter, Coinsis and Confluence Energy Partners LLC. With Southwest Strata, I lead various business development initiatives including deal origination, strategic direction, due diligence and business performance improvement for all deal flow. I holds a BS in management from Texas Christian University and have held a Private Investigator’s license, as well as, a Certified Information Security Systems Professional certification. I'm also a guest lecturer at several local DFW colleges.

$10,000 to $350,000