Purpose Of A Cover Letter In A Business Plan

Your business plan is a critical aspect of your business. More businesses are successful when they use a business plan than when they do not. That’s why you’ll find so many business planning resources at www.morebusiness.com. It’s a simple concept of planning improving the chance of succeeding.

Business plans are used for a variety of purposes: one key purpose is to provide direction to the entrepreneur over time. It’s something you can refer to periodically to make sure you’re on track. Occasionally, you might make changes to it – because you might think of it as a “living document” – that grows and flexes with changes in your business structure, in the economy, or because of other factors. These business plans may tend to take on a “patchwork” appearance with additional pages, sticky notes, and hand writing throughout.

But your business plan is also something you’ll use to go to the bank or lending institution to get money. And when you go there, you’ll want a nice looking document. Although we don’t want to live in a world where we’re judged by appearances, you can be sure that you and the feasibility of your business will be judged by your business plan.

So if you’ve spent a long time preparing it, that’s great. You need to review it again and again to make sure it’s a solid plan that paints you (truthfully) in the best light possible.

But how much time did you spend on the cover letter?

It’s easy to spend a lot of time in the exciting “envisioning” part of your business plan or the detailed financial part of your business plan… and simply not give as much attention to the cover letter. However, you should approach the cover letter with as much care and attention as you would approach anything else in your business plan. Here are some tips to help you create a great cover letter:

  • It is unlikely that you’ll want it to be more than two pages long. If possible, get it down to one page: perhaps four or five paragraphs at the most. If it’s too long, they’ll skip and get to the main document.
  • Don’t be afraid to have it professionally written. Even if you did the rest of your business plan yourself, the cover letter is the first look the bankers will get at your business.
  • Learn the properly accepted formatting and use it.
  • Stick to a professional looking, east-to-read font, like Times New Roman. On typed documents, avoid a sans serif font like Arial.
  • Find out the name of the person who will be reading the letter and address the letter to them. “Dear Ms. Smith” is so much better than “To whom it may concern.”
  • Remember to write in a way that clearly outlines the benefits to the bank of investing in your business, not in a way that talks about how good your business is. Remember that banks are ultimately looking for a return on investment from a good business; they’re NOT just looking for a good business.

In upcoming articles, we’ll look at other segments of the business plan and give you tips and advice to get the most out of that part of the overall package.

R. Khera

The business plan cover letter is different from any other types of letters because it is addressed to a lender or an investor who will review the proposed business plan.

This is the applicant’s chance to have a personal word with the lender and prepare him or her for reading the business plan. The feasibility of the business will be judged by the business plan. You need to think in advance if you want to create an absolutely powerful document.

 

People who are new in business often think that a business proposal cover letter is not important and gives more priority to working on their business plan. This is a wrong notion, so take the time to review some free online templates. They will help you to understand the structure and all features of such kind of document, you should be absolutely good prepared if you want to succeed.

Your letter is a key to achieving an important milestone in the job search process: landing an interview. Essential to every job search, it is a marketing tool for your skills and employment value.

Business Plan Cover Letter Tips

Follow these helpful tips:

  1. If you do not know the name of the individual going to read the business proposal call the lending institution or bank to be able to get the name and the title of the addressee.
  2. Make your business document professional in tone.
  3. Business cover letters must not belong they should be short and concise. Get directions to the point that a business plan is attached and that you would like to apply for a business loan.
  4. Outline the details of your business plan.

Keep in mind that you should always spell check your writing. It’s even better to get someone else to read it and point out any mistakes or confusing things. Furthermore, you need to double-check everything in your text. If you mention a company’s name, make sure you get it right. If you mention places you’ve worked before, make sure you get their names right too. Mistakes are worse than typos. And remember to keep things short. It will help you to underline really essential things that should be read first.

You should also follow these rules and be sure that you are ready to have a good start.

According to Confucius quote taken from Business.com:

You can’t build a reputation on what you’re going to do.

Business Proposal Cover Letter Sample

Name of Applicant
Address of Applicant
City, State, Zip code
Date
Name of Investor/Lender/Bank/Lending Institution
Address of Bank
City, State, Zip Code

Dear Mr. /Ms. Name of Lender/Investor,

I have read about your offers to finance small and medium starting businesses that cater to the use of biodegradable products and my business uses biodegradable raw products that conform to the safety of the environment. I am hereby submitting my business plan to you with the hope of being given the chance to apply for a $30,000 business loan.

I have a savings of $15,000 that I plan to invest in the business and we aim to make a $7,500 profit for the first year after payment of premiums and taxes, which we will reinvest back to the business for expansion.

Any consideration you can extend regarding this matter is very much appreciated. Thank you.

Sincerely,

Name and Signature of Applicant

Make use of our cover letters sample to help you in writing. Our expert writers know all features of such kind of documents. Furthermore, they know how to create an absolutely effective document for you. You know that our aim your full satisfaction, that’s why we will do everything until you will get what you really want and expect. Check out more of our cover letter writing tips today! Don’t miss your opportunity to receive the best chance of improving the quality of your life!

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