If you clicked through to this page, you're likely wondering whether you need a business plan cover letter. The not-so-satisfying answer is that it depends. If you're typically seek a loan or any other kind of funding through a bank, a cover letter it usually unnecessary. Bankers are happy to meet with you, regardless of whether you have a referral, a cover letter, or anything else. If you're seeking venture capital or angel investment – and particularly if you have not secured a meeting through a mutual connection – than a business plan cover letter, or a pitch letter, is essential. A business plan cover letter that is being sent unsolicited to a VC or another investor should include the following:
• A simple, clear description of your idea
• A clear statement of what's in it for the VC – primarily, what their return on investment will be
• A succinct summary of the market and why your idea has a shot at success
• A brief note about the competition
The primary point of a business plan cover letter is to you get your foot in the door with an investor or lender. To do this, your business plan cover letter should be sales-y and as sexy as possible to capture their attention. Make no mistake – a pitch letter should not include every minor detail about your concept, nor do you need to include extensive financial data. Should you sufficiently interest an investor, they will ask for those things later, so don't bog down your pitch letter with them.
If you need more help creating a business plan cover letter, call MasterPlans. As the industry leader in business plan writing, we've also written our share of pitch letters. Call us today to find out how we can help you craft a business plan cover letter that gets results. Reach us at 877-453-2011.
