Sometimes people use the term business plan when they are referring to a project.
The feasibility of the business will be judged by the business plan. People starting a small business may spend hours preparing their business plan, but not give much thought to the cover letter. This is a mistake. The cover letter is an integral part of the plan. Even if the applicant knows the lender, they should still submit a formal business plan with cover letter.
If they do not know the lender, they should remember that the lender will judge them by the content and tone of the letter. It should state right at the beginning that a business plan is attached, and that the applicant is applying for a business loan to start or develop a business. It is important to state clearly the benefits for the bank or investor.
They need to believe there will be a good return on their investment, or that the loan will be repaid on time. Some tips for the style of the letter are: It can relate some marketing facts, focus group responses, demographic data or other key statistics from the business plan, but it should not be overloaded with these facts.
It can have just enough to present the business as viable and show that the applicant has done his or her market research. The rest of the statistics are in the plan.
There should also be a brief mention of the financial position without going into too much detail. The letter can mention how much has already been invested in the business, and what profits are projected for the next year or two.
This will show the lender or investor that the business is worthwhile.
Here is a sample business plan cover letter for investors. It should be personalized for each lender or investor to whom it is sent.A business plan is a formal statement of a set of business goals, the reasons why they are believed attainable, and the plan for reaching those goals.
It may also contain background information about the organization or team attempting to reach those goals. 7 Elements of a Business Plan Your well-thought-out business plan lets others know you’re serious, and that you can handle all that running a business entails. It can also give you a solid roadmap to help you navigate the tricky waters.
Business Plan Outline 1. Cover Sheet or Title Page Keep it to a single page. Include the following information: Name of the company Company address. Create a cover page for your business plan With the Following layout and Format. Business Plan. Name of Company. Address of Company.
City, State ZIP Code. Telephone Number. Fax Number. Date of Plan Presentation. You may also include: Presented to: Name.
Company. Name of Owner/Contact Person. Address. City, State zip. The importance of ongoing business planning. Most potential investors will want to see a business plan before they consider funding your business.
Although many businesses are tempted to use their business plans solely for this purpose, a good plan should set the course of a business over its lifespan.
One Page Business Plan – A short, 1-page business plan is a more concise version of a complete business plan. It’s used primarily when you don’t want to divulge the full plan but are starting a conversation with an investor, lender, or other party.