- This letter is a sales letter. In this letter, you are not trying to introduce a product or a service, but you are proposing an idea. And you hope to make money by this, Your accomplishment will depend on your target market's confidence in being a part of your company or your idea. Remember to be distinct, loyal and genuine and keep your tone respectful.
- Describe the history on how you acquired the information of the target client.
- Inform him or her about your company or your organization.
- Point out that you are in need of investors and explain why.
- Request the recipient to invest in your business. Familiarize the target investor of the benefits of the investment.
- Show the reader all the available information about your company that you can present.
- Request for a meeting with the target client so that you can discuss other details of the investment.
[State, ZIP Code]
[State, ZIP Code]
[Subject: Normally bold, summarizes the intention of the letter] -Optional-
Dear [Recipients Name],
I was referred to you by some businesspeople in the automobile sales industry. We had an encounter already a few months ago during the car show in Ohio, which is why I remembered you immediately when your name was again mentioned to me by some of the industry experts I had conversed with recently.
I am the owner of a second-hand car shop called "Fast Wheels" in Tucson. It is a small family venture that I started three years ago. Over this period, we have seen the business grow quite substantially, which is why we would like to grow it further and include certain types of luxury models in our selection. To do this, we are opening up the business to interested investors. Since you are both knowledgeable and passionate about this industry, I thought that this is something you might want to consider. I believe that our collaboration will turn this endeavor into a very profitable one for both of us.
I am sure that you would like to discuss the particulars of this business plan in greater detail before you make a decision. Please let me know what day and time would be most convenient for you. Please feel free to send me an email or to give me a call at 353-3535. Thank you very much!
[Senders Title] -Optional-
[Enclosures: number] - Optional -
cc: [Name of copy recipient] - Optional -
Sample letter to potential investor in second-hand car shop.
Further things to consider when writing fundraising letters to investors
Fundraising letters are letters written to seek financial support for a cause, charity, or other enterprises. Such letters are often geared towards non-profit organizations and churches that are looking for contributions. Fundraising letters should be sent early enough in advance of the event so that the recipient can have enough time to respond to your request. If you know someone who knows the donor personally, include their names or have them sign the letters as making a personal contact may sometimes secure a donation.
Although sending out fundraising letters may seem old-fashioned, if crafted correctly, these letters can be extremely effective. Grab the recipient's attention from the start. Use the recipient's name so that he/she can know that the letter was intended for him/her, and not just some supporter. If he/she has made another donation in the past, thank him/her for it before asking again. Mention what the donation is intended for. Where appropriate, mention some of the past achievements of your organization. Explain the urgent need for the donation and how the recipient can help contribute to it. Tell the recipient how important he/she is to the cause. End by thanking the recipient in advance for his/her support.
Letters to Investors
Letters to investors are letters written to people or organizations that put money into property, financial schemes, etc. with an expectation of future financial returns. Mostly, such letters are sent to request funding from the investors. If you need money to start a business or any other venture, you may send investment proposal letters to investors to get their attention and convince them to invest in your venture. If thought and drafted carefully, your letter may get the investors running to you demanding to discuss more about the venture.
Just like other business letters, letters to investors should be formal. Start the letter with a confident subject line that gives an impression that the venture will make money. State your letter clearly and simply; avoid too much detail, acronyms, or jargon. Clearly state the business sector in which your venture is. Provide details on how much funding is needed and how the funds will be spent. Explain how you plan to repay the funds. Mention any special education, skills, or experience you have that will help make this venture a success. Provide your contacts and end your letter with a note of anticipation to doing business with the recipient.