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Written by: Carolyn Young
Carolyn Young is a business writer who focuses on entrepreneurial concepts and the business formation. She has over 25 years of experience in business roles, and has authored several entrepreneurship textbooks.
Edited by: David Lepeska
David has been writing and learning about business, finance and globalization for a quarter-century, starting with a small New York consulting firm in the 1990s.
Published on February 20, 2023
Congratulations! You’ve finished your business plan, and now you’re looking to send it out to potential backers. Great work. But there is one last hurdle before you move forward, and that’s writing a cover letter to introduce yourself and your business and convince people to dig into your business plan.
It needs to quickly capture readers’ attention and interest, which means it needs to be very well written. But don’t worry, this handy guide outlines how to craft a business plan cover letter that will give you and your venture the best chance of success.
A cover letter is like an elevator pitch – it’s your opportunity to attract investor interest and persuade them to investigate further. Basically, you’re selling your business idea in just a few paragraphs.
But keep in mind that most investors receive hundreds of business plans every month, most of which they never read. Thus, your cover letter needs to break through the noise and grab their attention.
Your cover letter needs to be brief, just half a page or so. This means you need to quickly get to the point.
Start with a header that includes your name, the name of your business, and contact information. Next comes the name and address of the recipient, followed by a greeting line, which should also mention the person’s name.
Grab their interest immediately with a sentence or two highlighting this fantastic business opportunity. If you met them while networking, briefly mention that before detailing your vision – the problem your business solves and how. Keep it brief, and make it compelling.
Next, explain exactly what will make your business stand out. Do you have intellectual property? A unique value proposition or competitive advantage? Choose what you think is the single most compelling point in your business plan and explain it in detail.
Briefly touch on the skills and experience that will help you execute your business plan. If you have partners, briefly mention their qualifications as well. Avoid being overly self-promotional.
End by thanking them for their time and proposing a follow-up, whether it’s scheduling a call or a future email. Offer to send additional information and answer any questions they may have.
[Your Name] [Your Address] [City, State ZIP Code] [Your Email Address] [Your Phone Number] [Today’s Date]
[Recipient Name] [Recipient Title] [Company Name] [Address] [City, State ZIP Code]
Dear [Recipient Name],
I am writing to introduce our company, [Your Company Name], and to present to you our business plan that outlines our mission, objectives, and strategies for [specific purpose, e.g., expansion, new product launch, etc.].
Our team has worked diligently to create a comprehensive plan that we believe not only aligns with the current market trends but also capitalizes on future opportunities. We have taken into consideration the challenges that we might face and have developed strategies to navigate them.
In the enclosed business plan, you will find:
We are confident that our business plan provides a clear and attainable path for [Your Company Name] to achieve its objectives. We invite you to review the document and would be more than happy to address any questions or concerns you might have.
Thank you for considering our proposal. We look forward to the possibility of working with you and appreciate your time and consideration.
Sincerely,
[Your Name] [Your Title/Position] [Your Company Name]
John Doe 123 Apple Lane Los Angeles, CA 90001 [email protected] (123) 456-7890 September 13, 2023
Mr. Richard Smith Investment Manager Capital Ventures Ltd. 456 Orange Street Los Angeles, CA 90002
Dear Mr. Smith,
I am writing to introduce our company, TechGuard Solutions, and to present to you our business plan that outlines our mission, objectives, and strategies for expansion into the European market.
Our team has devoted countless hours to crafting a comprehensive plan that aligns with the technological advancements of the current age and seizes potential market opportunities in Europe. Recognizing the challenges of entering a new market, we’ve developed robust strategies to ensure our success.
In the enclosed business plan, you will find:
We are optimistic that our business plan illustrates a clear and achievable route for TechGuard Solutions to thrive in Europe. We invite your insights and feedback on our proposed strategy.
Thank you for considering our proposal. We are eager to embark on this journey and hope to collaborate closely with partners like Capital Ventures Ltd.
Sincerely,
John Doe CEO TechGuard Solutions
Even though a business plan cover letter needs to be short, it’s wise to take all the time you need to make sure it’s perfectly crafted. The future of your business could depend on it! So once you’ve written a solid draft, show it to people you trust to get their feedback and make changes as needed.
A good cover letter will convince readers that this is a business plan they simply must read. And if you’re able to do that with major investors, your business has a great shot at success.
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