Anyone who is seeking investment or a loan should have a well-written and well-researched simple business plan template. It will not only help you to make a good first impression with potential investors and lenders, but it can also provide them with all of the information they need in order to make their decision about funding your business.
When approaching investors and lenders, you will want to make sure that you have a cover letter to introduce your business plan. In this article, you will learn what a business plan cover letter is, why it is important, and a proven template for you to use.
A business plan cover letter is a type of professional correspondence that you send with your business plan to introduce yourself and your plan to a potential investor or lender. It is important to make a good first impression with your cover letter, as it is likely the first thing the reader will see.
When creating a business plan, the cover letter is often overlooked. However, a well-written cover letter can make a huge difference in whether your business plan gets read or immediately discarded. This article will explain what a cover letter for a business plan is, why it’s important, and provide tips on how to write an effective cover letter that sells your business idea and compels the reader to dive into your full plan.
What is a Cover Letter for a Business Plan?
A cover letter for a business plan is a 1-page introduction letter that accompanies your business plan when sending it to potential investors, partners, or financial institutions It serves as a professional introduction to your company and highlights key details about your business venture
The cover letter allows you to briefly summarize your business concept communicate your enthusiasm explain why you are seeking funding, and request a meeting to further discuss investment opportunities.
Why is a Cover Letter Important?
Including a cover letter with your business plan is crucial for several reasons:
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Makes a strong first impression – The cover letter is often the first part of your business plan that will be read. You want to make a great first impression and convince the reader to continue reviewing your full plan.
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Saves the reader time – A good cover letter quickly communicates key details about your company so the reader doesn’t have to hunt for information. This shows respect for their time.
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Explains what you want – The letter allows you to clearly state what you are seeking, whether it’s an investment, loan, partnership, etc.
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Personalizes your request – You can explain why you are reaching out to this particular person or company and tailor your ask to them specifically
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Allows you to show enthusiasm – The tone of your letter communicates your passion, drive, and why you believe in your business. This enthusiasm can get the reader excited about your venture.
Tips for Writing an Effective Cover Letter
Follow these tips to craft a compelling cover letter that makes a great first impression:
1. Keep it brief
The cover letter should only be 1 page long. Avoid excessive details and get right to the point. Stick to the key facts about your business idea and what you are seeking from the reader.
2. Follow business letter format
Use proper business letter format with your contact information, the date, recipient address, salutation, body paragraphs, closing, and signature. This shows professionalism.
3. Grab attention with an interesting first paragraph
The first paragraph needs to hook the reader instantly. Try opening with an impressive statistic about the market opportunity, an intriguing question, or concise mission statement that communicates what problem your business solves.
4. Explain your business concept
Briefly explain your company, product or service, target customers, and competitive advantage. Focus on the highlights rather than trying to cover every detail (that’s what the full plan is for).
5. Specify what you want from the reader
Clearly state what you are seeking, whether it be an investment amount, partnership, mentorship, or something else. Provide specifics so they know exactly what you are asking for.
6. Note why you approached this person/company
If applicable, explain why you specifically sought out this individual or company. Make it clear this is not a generic letter sent to everyone. Compliment their expertise or something admirable about the company.
7. Project enthusiasm
Let your excitement about the business shine through in your tone and language. Avoid sounding desperate, but show genuine passion and confidence that will get the reader interested.
8. Close with a call to action
Wrap up by requesting a meeting or asking for the next step, such as a phone call to discuss the business plan further. Provide your contact information and make it easy for them to get in touch.
9. Proofread carefully
Be sure to thoroughly proofread your letter and have others review it too. Typos or careless errors could cost you the opportunity.
Cover Letter Template and Examples
Review the cover letter template and examples below when drafting your own letter to accompany your business plan:
Cover Letter Template
Your Contact Information
Date
Recipient’s Name
Company Name
Address
City, State, Zip Code
Dear [Recipient’s Name],
Attention-grabbing opening sentence that communicates your mission statement or entices the reader. Briefly explain your company, product/service, target market, and what makes you unique. Specify what you are seeking from this individual/company and why you are reaching out to them specifically. Express enthusiasm for your business and confidence in its potential for success. Request a meeting to discuss your business plan and proposed [partnership/investment/etc] in more detail. Provide contact information and ease of next steps. Thank the reader for their time and consideration.
Sincerely,
[Your name]
[Your title]
[Your company name]
Business Plan Cover Letter Example
Jane Doe
Founder & CEO, Jane’s Bakery
123 Business Rd, City, State 12345
(555) 555-1234 | [email protected]
October 15, 2022
Mr. John Smith
Venture Capital Investor
ABC Capital
456 Main St, City, State 12345
Dear Mr. Smith,
Did you know that the bakery industry has grown over 20% in the last five years as interest in artisanal baked goods continues rising? As a successful bakery owner looking to expand, I’m excited to meet fellow entrepreneurs like yourself who see the potential in this space.
My business, Jane’s Bakery, produces beloved baked goods that have developed a loyal local following in City, State. After five years of perfecting recipes and building word-of-mouth demand, I’m ready to scale up. I need $100k to open a new location expected to generate over $300k in additional annual revenue.
Your expertise in the food and beverage startup market makes you an ideal investor. I am seeking a partnership to take Jane’s Bakery to the next level. I am confident my business plan will interest you – the financial projections show high growth potential. I would love to schedule a call to walk through the plan and discuss investment opportunities. Please contact me at your earliest convenience. I look forward to speaking with you.
Thank you,
Jane Doe
Founder & CEO
Jane’s Bakery
Putting It All Together
A strong cover letter is your secret weapon to getting your business plan read. Spend time perfecting this important 1-pager that could make or break whether your plan gets considered. Follow the tips above to craft a compelling letter that makes a powerful introduction to your business and ultimately convinces the reader to turn to page 1 of your plan. Best of luck as you secure the funding you need to turn your great idea into a thriving company!
The Hudson Boutique Hotel
Dear Mr. James Peterson,
The Hudson offers an upscale experience in a smaller city setting with all of the comfort and amenities of home. We offer our guests free Wi-Fi access as well as complimentary breakfast and on-site parking. Our rooms are modern and elegant, and we provide luxury bedding that helps ensure a quality night’s sleep.
Our location at 412 National Street is just two blocks from downtown and within walking distance to several popular restaurants and shops. Please refer to the attached business plan for more information on location specifics. This document also outlines our company philosophy including management team profiles, financial projections, and more.
Thank you for your time and consideration. I am eager to discuss our plans to expand the boutique hotel further with you. Please do not hesitate to contact me at 555-555-1212 should you have any questions or would like to arrange a meeting.
The Hudson Boutique Hotel
How to Write a Cover Letter Properly
In order to compose an effective cover letter, you should keep several things in mind.
First, try not to exceed a half-page for your cover letter. The person that you are sending it to is likely going through a large stack of business plans, and they don’t have time to read a long cover letter from every business owner in need of funding. It should be long enough to make a good impression, but short enough to create interest to entice the reader to read your business plan to learn more.
Second, you should make sure that your cover letter is well-written and professional-looking. It is important to take the time to draft a good cover letter, in the proper business cover letter format, as it can help to make a positive impression on the reader.
Finally, you should tailor your business plan cover letter specifically for the person or company you are sending it to. If you were sending it to a small business investor, you should mention that. If you were sending it to a bank, make sure to mention your plans for repayment of the loan.
However, because most business plans are sent to investors or lenders via email, a formal cover letter isn’t always needed. Rather, you can simply put a note in the body of your email.
Regardless of the method of delivery, your contact information should be included, as well as any other important details that will help your reader contact you to talk through your funding options further.
If you’d like to quickly and easily complete your business plan, download Growthink’s Ultimate Business Plan Template and complete your plan and financial model in hours.
How to Business | Cover Letters
How do you write a business plan cover letter?
Here are a few tips that can help you write a business plan cover letter: Keep it short: A good cover letter quickly captures the reader’s attention and summarizes the business plan. It’s a good idea to hit the most significant business plan elements and highlight them, leaving most of the details for the business plan itself.
Why do you need a cover letter for a business plan?
Because your cover letter surfaces the key points from the plan so readers know why they should read the plan and what to focus on. To write an excellent business plan, you must first begin with research.
How do you write a cover letter for a business idea?
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.
Do you need a cover letter for a small business loan?
If you were sending it to a small business investor, you should mention that. If you were sending it to a bank, make sure to mention your plans for repayment of the loan. However, because most business plans are sent to investors or lenders via email, a formal cover letter isn’t always needed.
