To simplify, the business plan cover letter refers to the critical part of the business. When they utilized a business plan with the business, then it leads to business into a successful one. There are varieties of cover letter for business planning resources that help in the improvement of a project and increase the success rate in the market.
The business plan is known to be a crucial document for your business, and that is used for getting money from the lending institution or bank. Before going there, you need a perfect appearing report. There is no right to judge a business by appearance; instead, it helps to reflect business feasibility through the business plan. So, it’s better to spend more time to prepare it. You should review it to be sure about a good idea that places you in the best position as possible. Business plans have various purposes as it gives direction to the entrepreneur, helps in grows and flexes with changes in business structure.
While new business venture launching, A business plan helps us to review time to time and evaluate the implementation of the project. A cover letter plays an important role as it is sent with the business plan to banks or other financial institutions to receive a loan for your business.
The cover letter aids to make a good impression and will be the first document the bank prefers as they decide whether or not to invest in your business. A clean and comprehensive cover letter not only draws attention but also helps to make you worthy and win their trust as well.
Way of Writing cover letter for a business plan
The following are the way of writing a cover letter for a business plan:
1. Write the header
Your name should be included along with your business name and contact information at the top so that the bank can see clearly while reading it. The contact information contains your telephone/mobile number, business address, email address, physical address, office number, as well as the employer. You should give an email address which you usually used and check frequently.
2. Address to the actual person
By addressing the business plan cover letter to the actual person, it isn’t easy to express your professionalism. Do you know name of person who is going to read the contents of the proposal? If you don’t, then go for research on the company’s website, or you can call and ask the organization for the individual name. Type the name, title, bank name, location and address of the recipient after receiving information. In the meantime, don’t forget to note the date you intend to send the cover letter for the business plan. Greet recipient formally and professionally, such as Dear Ms John.
3. Grab the reader’s attention
The first paragraph should begin by drawing the reader’s attention to make him/her not wasting their time by reading the content in the letter. You can win their trust by giving reasonable content in the letter. You can also say that you are sending your business plan to the banker and hoping to get a loan. Inform them about the business plan is attached in it. It Depends on the subject matter, you can start the letter with a question, quote, or statistic.
Writing a cover letter for a business plan
4. Provide your own background & credentials.
In this second paragraph, describe your intention for establishing your business. Expand your background, credentials and detail about your financial plan like your investment, plan to earn profit and so on. You have to show you quiet worthy of making bank invest in your business. Please give them a reason that you are the best person for the deal by reflecting your skills and expertise along with your ability to contribute to the company.
5. Show your interest
It creates a critical situation to show interest within the letter. The third paragraph will be perfect for showing the importance and clearly say to the reader that you are planning to check by calling.
6. Express some gratitude
In the last paragraph, end the cover letter by saying your proposal is enclosed with the letter. In the final section, don’t forget to thank the recipient for giving their valuable time for your proposal. You are hopeful if your business plan is reviewed. Tell them that you are available at any time to discuss the further business plan.
7. End the letter
Finally, end the letter with a formal closing, such as “Sincerely,” and write your name three or four lines after the closing.
Writing Tips for the style of business plan cover letter
Through this letter, you have great opportunities to make an excellent impression of the reader. The cover letter is the easily assessable and the first thing that the bank sees as they may or may not invest in your business. So we have to be very careful while writing a business plan cover as it gives an excellent impression to the investor. Here are some writing tips for the style of business plan cover letter:
- The cover letter should not be exceeding from 1 or 2 pages. It should be short and sweet.
- The letter should be clear, concise and address it to a specific person(name and title), if possible
- Use the proper business format
- Use a formal and professional language, conversational tone in the letter
- Do not use slang, informal and contractions languages
- Please do not make it too wordy and too long paragraph
- Use the active voice and short sentences in the letter
- Give a clear explanation about your practice that will be a good investment for the bank
- List the strengthen main points with a comprehensive explanation for each one
- Make an attractive environment about the business, so they get interested in the plan
Understand the Lender
The lender plays a significant role in the cover letter for a business plan.
They should compulsorily submit a professional business plan along with a cover letter even if the applicant knows the lender. It’s very important to know the individual who is preparing the letter about the protocol of content and tone.
Benefits for the investor should be written as it reflects and draws the attention of the lender. You have to make them believe in you they will get benefit from a return on their investment. You have to prove them in such a way that they won’t regret later.
How much time should you spend on preparing the cover letter?
You spend too much time writing an exciting part and crucial financial part of your business plan and not give priority to the cover letter and forgot about the limitation. It’s easy to write a letter but hard to write an effective and attractive one.
However, you should prepare the cover letter with your full care and attention to give a good impression. To make the letter, don’t take more than 2 hours to write a business plan cover letter as 1 hour for noting the vital information and remaining 1 hour to write a real letter.
Business plan Cover Letter Samples
1. Business plan cover letter for bank
Address, city, ZIP Code
Name of Bank or Lending Institution Address of Bank etc
City, State, Zip Code
Dear [recipient] :
The main purpose of this letter is to gain a lending facility for our business. The business plan is attached along with the cover letter to give information about our business plan and our aim towards business. We are planning to establish a business of hotel, recently, which is more demanding.
I am sure to invest in mu company is the right decision as I carefully consider the needs of this business. To complete the loan underwriting step, we have to work together. With the help of the business plan, we will be more comfortable to decide whether you want to provide a loan or not.
I have dreamed of constructing a hotel in this city because there are fewer hotels in these areas. I have been working as a hotel manager for 4 years in my life and believe that I could build a unique and profitable hotel. My business plan gives ideas that I already have $10,000 to invest in my business. I am 100% sure that I can at least make a $40,000 profit by the end of the year once I opened the hotel.
Thank you very much for giving your valuable time and consideration towards the cover letter. I hope your time will be utilized by viewing my plan. If you want to discuss my business plan with me in person, I am always available to you and can arrange an appointment. Thanks again.
2. Cover letter for bakery business plan
Address, city, ZIP Code
Name of recipient
City, ZIP Code
Dear Mr John,
I am very pleased to send you a cover letter with attaching my business plan for the bakery business. I hope to get your support from getting a loan of about $30000 to start my business. Recently, I got the news of giving loan for a bakery business from your bank, and this information gives me an idea for constructing the business. I am quite experienced in this field as I have my working experience gained of working in high volume kitchens and of preparing, baking.
As per my business plan, I want to invest $50000 in my business as I have saved up to $20000. I have planned of getting a profit of $5,000 in the first year, and $7000 in the next year our. We want to be popular in this city by offering different service. So we hope to establish the bakery business with your support.
My neighbour brother and I are planning to unite together to make this business a success. We have worked for the last five years in this field and plan to build an office where we plan to provide different service to seduce our customer. We will create a friendly environment between staffs to work effectively and smoothly.
I am very thankful for giving me your precious time and consideration in this matter. I hope you will review my business plan. And I want to have a call for an interview to give you further information about my business plan. I can be available at any time and reached at this number or Name@email.com. I would be blessed to meet you at any time that you prefer.