Starting up a new business is a tremendous challenge. Before you do anything, you need to create an attractive, clear, and focused business plan.
Your business plan cover letter is your pitch to bankers, investors, and clients. Your business plan’s cover letter can earn you the investor/client you need— or you may lose them altogether.
A perfect business plan cover letter should ensure that the investor/client:
- Is intrigued enough to ask more about your venture.
- Knows your brand. The first few lines should state the name of your company, the address, and a little background about the business.
- Knows your reasons for venturing into the new business. Attach your proof of market research to demonstrate that the service or the product you wish to launch is in demand.
- Sees the uniqueness of your business. List the advantages and highlight the merits of your business. Don’t skip this step!
- Gets that what you and your business have to offer is authentic. Your business plan cover letter should mention key items including: demographic data, statistics, focus group responses and the results of your market research.
- Knows how you plan to quell the competition. The cover letter should spell out your plan to break into the market and steal work away from competitors. Briefly describe the threats you expect to face and what your plans are to manage them.
- Picks up on your optimism and confidence. Your business proposal should invite investors to contact you with queries or to contact you for further clarification.
Keep in mind the purpose and the audience of your cover letter. The cover letter should sell your business plan to prospective investors. Make sure the writing is clear and focused. (Don’t be afraid to enlist help if you need it.) Effective communication is key to finding the backing you need to launch your business.