There are countless ways you can fund a small business, including your new startup. So don’t hesitate to start your own business, because you are a little short of money.
Looking for investors is just another basic step in starting a business. Part of that process can include writing a good pitch letter to potential investors.
Here’s my sample funding pitch letter:
John Smith
Angel Investor Network of Greater Metropolis
Main Street 1000
Metropolis, NY 10020
Dear Mr Smith:
As a follow-up to our phone call, I will send you the requested copy of my Bob’s Rent-A-Bike business plan.
Starting in June, we will be renting bikes for summer visitors to Cape Cod. I believe we are well positioned to succeed in the business as we will aggressively promote our strategy of delivering our bikes directly to our customers’ summer locations such as motels, campgrounds and summer home rentals.
There is a large summer bike rental market on Cape Cod, with thousands of bikes available for hire at many locations in the area. But there is not yet a company that delivers rental bicycles directly to the customer.
We are seeking funding of as little as $7,500, largely to buy a fleet of 50 used bikes and also to help cover startup costs such as advertising. I invest my personal savings of $2,500.
I know the financing amount of $7,500 is a lot less than your usual investment commitment. However, there is a significant benefit to Bob’s Rent-A-Bike. Furthermore, the risk is very low because there is a huge market for bike rentals on Cape Cod. We think that many people prefer to have the bike delivered directly to them. In addition, since most of the investment is for bicycles, your investment would have significant security.
I’ll call you in a few days after you’ve had a chance to review the business plan. In the meantime, don’t hesitate to call me with any questions.
Honestly,
Bob Adams
Founder
Bob’s Rent-A-Bike
Bob Adams is a Harvard MBA serial entrepreneur. He has started more than a dozen businesses, including one that he launched with $1500 and sold for $40 million. He has written 17 books and created 52 online courses for entrepreneurs.
