Wondering about a business plan LOI or trying to figure out the best letter of intent to provide for potential investors? The letter of intent is not traditionally included in the document, and certainly would never be viewed as a mandatory part of the business plan packet. However if you want to make it as easy as possible for potential investors to support your new venture, there are some inclusions for the document that will raise your chances of being well received and, ultimately, securing the capital you need. These include:
• Your projected Year 5 net profit
• The percentage of the company you'd be willing to relinquish
• The P/E ratio applied to both your earnings and the investment itself
• A sensible exit strategy
• Legal disclosures, as required
The plan also needs a complete financial pro forma including revenue forecast, break-even point, cash flow, balance sheet, and profit and loss statement. The business plan also needs a concise executive summary, a good market analysis, and a solid section that explores the marketing techniques you might use to promote the new business. In short, all of these pieces are more important than an LOI. If you need help developing any part of the business plan or want to talk to professional planning consultants about what to include or which pieces matter most, call MasterPlans today: 877-453-2011.
