Ask For an Investment - Letters

Example Letter #1

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I recently talked to my father about expanding a business I am running on the side. Since he knows of several successful businesses that have gotten their start with your financial backing, he gave me your name as a possible investor.

At present, I am selling my home-baked brownies to fine restaurants. These moist, rich chocolate brownies have generated more attention than I ever anticipated. My customers jokingly say that brownie lust is what brings them back. Several are ordering an ever-increasing supply to the point where I cannot keep up with the demand. In addition, a national chain of gourmet coffee houses has approached me to contract with them for their desserts, which would include more than brownies.

I would like to make this a full-time endeavor, but I lack the funds for larger equipment purchases and salaries for two full-time employees. With expansion, the business has great potential. I would like to meet with you to discuss the possibility of your investment in detail. I believe we could both benefit substantially.

Example Letter #2

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I hope you know how much we appreciate you, and how very important your support is to Doe University. Your past contributions continue to assist in increasing the number of academic scholarships and grants-in-aid we can award.

Now we ask you to once again join with us as we launch our ambitious campaign to teach more students, enhance Doe University's educational quality, and expand Doe University's influence. Please evaluate your present circumstances and, if possible, renew your support of this great University.

Our combined participation can, indeed, change the lives of thousands of our youth who seek to use their knowledge to serve their families and communities. We--and they--need you! Please join with us in this historic campaign by sending your gift today.

Example Letter #3

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You have been recommended to me as a strong investor in local businesses. You may recall that we met at the Springfield Chamber of Commerce open house last month. I own "Jane's Place," the restaurant on the corner of Center and Main.

The opportunity has arisen for us to open a second restaurant in Centerville, near the Centerville playhouse. This is a most promising site, but this degree of expansion will necessitate our obtaining capital investment. The original "Jane's Place" is extremely popular with Springfield's young professional population, and I would like to offer you the opportunity to invest in what will almost certainly become Centerville's favorite after-theater gathering place. I expect this new restaurant will not only help to build the downtown area in a very positive way, but will also offer an excellent return on your investment.

I would like to discuss this opportunity with you further. I will be happy to bring you the market research and business plan proposal. I will call you on Friday to set up a meeting, or you can reach me at 555-5555.

Example Letter #4

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Dr. John Doe, the Springfield School District Superintendent, suggested that I write to you. I have taught special education at Springfield elementary school for the past five years. In this time, I have developed a reading program which has enabled 70% of my special education students to improve their reading by two grade levels in a single semester. Other schools in the district have tried the program with similar results, and I now intend to market the program nationally.

Because of your well-known interest in educational technology, I would like to offer you the opportunity to invest in this innovative product. The returns promise to be excellent, both financially and in the knowledge that so many children are being helped. I have enclosed a full description of the program, along with test results of the children who have used it, as compared with a control group.

Would you be interested in meeting with me to discuss this further? I will call early next week to make an appointment.

Example Letter #5

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We have not met previously, but John Doe suggested that you might be interested in my project. My company is planning to develop a retirement community on the shores of Lake Springfield.

Normally, as we develop our real estate holdings, early sales pay for later development, but in this case we need to have the extensive (and costly) central amenities in place before we can proceed with the sale of individual units. We would like to invite you to invest in this timely development. The enclosed prospectus gives a full description of the project, which I am sure you will agree is an appropriate development of an outstanding location.

Could we discuss this over lunch some time next week? I will call you to make arrangements.

Letter-Writing Tips

This is a sales letter. You are not selling a product or a service; you are selling an idea that you hope will make money. Your success will depend on how confident your prospective investor becomes in your company or idea. Be clear, honest, and sincere, and maintain a respectful tone.

Step-by-Step Guide

1 Explain how you obtained the name of the potential investor.

Sentences
  • I obtained your name from John Doe, your executive producer.
  • Our mutual business acquaintance, John Doe, may have told you a little about our business and what we plan to do.
  • I met with John Doe a few days ago to discuss some of our company's plans to expand, and he mentioned that you and your corporation may be able to help us.
  • I am writing this letter to you because I know you have shown a generous interest in many other Springfield small businesses.
  • Because you and your company have promoted the fine arts in our community for many years, I thought you would be interested in our nonprofit organization.
  • I am writing to you because your corporation has been well known for making wise investments in the semiconductor industry.
  • The opportunity I wish to present may interest you because of your deep concern for the success of American companies.
  • My business associate, Mr. John Doe, recently told me of your desire to invest in an outside company.
Phrases
  • a mutual business associate
  • am writing this letter to you because
  • because of your deep concern for the success of
  • because you and your company have promoted the fine arts in
  • discuss some of our company's plans to expand
  • got your name from
  • have shown a generous interest in
  • may have told you a little about our business
  • mentioned that you and your corporation may be able to help us
  • met with John Doe a few days ago
  • Mr. Doe of Doe Corporation advised
  • obtained your name from
  • opportunity I wish to present may interest you
  • our mutual business acquaintance
  • recently told me of your desire to invest in
  • thought you would be interested in our nonprofit organization
  • told me you were looking to invest in
  • what we plan to do
  • who might have mentioned our firm to you

2 Tell about your company or organization.

Sentences
  • We specialize in manufacturing semiconductors used for common household products such as televisions, radios, and computers. We have enhanced the production process so that today 99.7% of all the components reaching our testing laboratories pass inspection. No other corporation has been able to reach this high standard.
  • The Doe Corporation was founded in 1985, during the health consciousness boom. Its founder, John Doe, offered the public health foods and herbs that were, up to that time, available only in very exclusive stores. Now Doe health stores are located in malls all over the nation.
  • Our company manufactures and supplies water softening agents and systems. These products extend the durability and effectiveness of plumbing systems by eliminating mineral deposits and corrosive elements along the pipes.
  • At the Doe Corporation, we are dedicated to producing the highest quality medical supplies on the market. Because we spend years researching and perfecting each of our products, hospitals and clinics across the nation have come to depend on us for many of their supplies.
  • Ten years ago my business partner, John Doe, and I opened our first electronics store. Now, we have five large establishments in the state.
  • We have considered it a privilege to serve the citizens of Springfield. Over the past seven years, we have assisted hundreds of individuals and businesses in achieving and maintaining financial security.
  • The Doe Corporation has been a successful housing development firm for ten years. We design and manufacture homes, condominiums, and apartment complexes. As you can imagine, this has been a very lucrative business.
  • For many years, Doe Oil has been a small contributor to larger companies. Recently, however, we have recognized that the quality of our petroleum products far surpasses the industry standard.
Phrases
  • a number of our products have sold very well
  • are dedicated to producing the highest quality
  • are a rapidly growing manufacturer of
  • because we spend years researching each of our
  • come to depend on us for many of their supplies
  • company manufactures and supplies
  • few other corporations have been able to reach this high standard
  • has generated a very good reputation with
  • have enclosed a list of our products for your reference
  • have enhanced our production process so that today
  • have assisted hundreds of individuals and businesses in achieving
  • now we are located in malls all over the nation
  • now we have five large establishments in the state
  • our history, where we have been and where we are going
  • produce goods that are designed by various
  • specialize in manufacturing semiconductors used for
  • these products extend the durability and effectiveness of
  • this one-owner property has had meticulous care both inside and
  • up to that time, available only in very exclusive stores

3 Explain that you are looking for investors and why.

Sentences
  • Because of the superior quality of our semiconductors, and because of the increasing need for our product in the industry, we want to seize the opportunity to expand immediately; however, in order to do so, we need the help of outside investors.
  • The Doe Corporation has reached such popularity that we want to open a new line of products and services, including health fitness centers. The first step in our expansion will be to open a fitness center in the Springfield area.
  • Until now, we have only installed our systems in homes, but our research suggests that the largest market for our products is in large business and industrial buildings. In order to take advantage of this large market, we need additional capital to develop industrial-size components.
  • We propose to revolutionize intravenous catheters and have done much research to this end; however, we are running out of money for this important product, even though there is still a lot of work to be done. Now we must turn to the scientific community to help us fund the research, design, and production of this important new product.
  • Our existing establishments have been so successful that we want to build five more stores. Our research indicates that the proposed locations will be ideal, with little or no competition in the foreseeable future.
  • During this time when every dollar must count, we want to be able to serve even more individuals and businesses. For this reason, we want to establish three more consultation centers in the state. Because we lack the immediate reserves to accomplish this goal, we want to invite business owners in the Springfield area to invest in their own financial futures.
Phrases
  • allow investors outside the company to take part in it
  • are at a turning point in our growth pattern right now
  • are at a point where we must
  • are looking for a silent partner to finance our expansion
  • because we lack the immediate reserves to accomplish this goal
  • can no longer satisfy the demand for our products and services
  • demand for our services has escalated so rapidly that
  • even though there is still a lot of work to be done
  • firm cannot be run competitively by a committee
  • first step in our expansion will be to open
  • has reached such popularity that we want to open a new line of
  • have implemented solutions to our problems
  • in order to take advantage of this large market
  • in order to do so, we need the help of outside investors
  • invite business owners to invest in their own financial futures
  • most profitable way of handling this unique expansion opportunity
  • must expand our facilities or turn down work
  • must turn to the scientific community to help us fund
  • need more capital to expand
  • need additional capital to develop
  • research indicates that the proposed locations will be ideal
  • running out of money for this important product
  • since we have carved out a unique market niche
  • have caused temporary cash flow problems
  • want to seize the opportunity to expand
  • want to avoid turning down work if at all possible
  • with little or no competition in the foreseeable future

4 Ask your reader to invest in your company. Present the investment as a benefit to the investor.

Sentences
  • We want to offer you this exciting opportunity to secure a wise investment.
  • This could provide your company with an opportunity for further financial growth.
  • The Doe Corporation wants to extend a formal invitation to you to invest in our project. This investment is worthwhile, not only for financial reasons, but because it will significantly contribute to the future of medical science.
  • We are asking for several small investments from businesses in your area, and we would like you to be the first to accept.
  • I'm sure you understand that, although we lack the money to accomplish this goal on our own, we must act immediately. Therefore, we want to invite you to become part of our team by making an investment.
  • We are sure that our expansion will prove to be very financially rewarding, and when this happens, you will reap the rewards along with us.
Phrases
  • although we lack the money to accomplish this goal on our own
  • an extremely profitable use of your money
  • are asking for several small investments
  • are sure that our expansion will
  • could provide your company with an opportunity for
  • enjoy all the benefits of a
  • invest in the ownership of your suite
  • can structure investments to provide tax benefits for
  • must act immediately
  • not only for financial reasons
  • obtain a wise and secure investment
  • prove to be very financially rewarding
  • this investment is worthwhile
  • to invest in our project
  • want to extend a formal invitation
  • want to invite you to become part of our team
  • want to offer you this exciting opportunity
  • will reap the rewards along with us
  • will significantly contribute to the future of
  • would like you to be the first to accept

5 Offer your reader all the current information about your company that you can.

Sentences
  • Enclosed with this letter are pamphlets explaining our services and detailing our expansion plans.
  • We wouldn't ask you to invest in this project without giving you all of the facts. Enclosed with this letter is more detailed information concerning our goals and purposes.
  • Attached is an outline of the projected dates and specific details for our expansion.
  • You will find with this letter photos of our existing establishments and more information about our company.
  • We want you to feel comfortable with any investment you make and, therefore, have enclosed additional information about our firm's history, our purpose, and our current financial standing.
  • Enclosed is all the printed information we currently have about our corporation. We want you to be confident about investing in our products.
Phrases
  • attached is an outline of
  • can make an informed decision
  • detailed outline of our expansion plans
  • enclosed with this letter are pamphlets
  • further explain our services and our market
  • have enclosed additional information about
  • listed one of the finest buildings in
  • more detailed information concerning our goals and purposes
  • more information about our company
  • must have a full understanding of
  • our current financial standing
  • our firm's history
  • projected dates and specific details for our expansion
  • provide you with all pertinent information
  • the enclosed materials should
  • this is an extremely profitable use of your money
  • want you to feel comfortable with any investment you make
  • will find photos of our existing plant with this letter
  • would not ask you to invest in this project without

6 Ask the prospective investor to meet with you to discuss the details of the investment.

Sentences
  • I will follow up on this invitation some time next week. I will call to make an appointment.
  • So you can learn more about this investment opportunity before you make your decision, I would like to meet with you next week. I will call for an appointment.
  • I will call you in a few days to discuss this matter in greater detail.
  • I will be in Springfield next week. Do you suppose that you could clear and hour or so in your schedule to look over my proposal and to discuss the terms of this investment?
  • May I drop by your office next Thursday to discuss this investment opportunity?
  • I feel that a face to face meeting will be the most beneficial because I will be able to answer each of your questions on the spot. How does next Tuesday evening at 7:00 p.m. sound? Let's discuss it over dinner.
  • I would like to discuss my proposal in person so that we can become better acquainted. My secretary will call in a few days to set up an appointment.
Phrases
  • after you have reviewed the enclosed material
  • before you make your decision
  • can pursue this matter further
  • can discuss it over lunch
  • clear an hour or so in your schedule
  • discuss this matter in more detail
  • discuss the terms of this investment
  • discuss this investment opportunity
  • do you suppose that you could
  • feel that a personal meeting will
  • look forward to meeting with you
  • look over my proposal
  • may I drop by your office next
  • please contact me when
  • secretary will call in a few days to make an appointment
  • so that we can become better acquainted
  • so you can learn more about
  • thank you for your attention
  • this investment opportunity
  • will call you in a few days
  • will call to make an appointment
  • will follow up on this invitation
  • will be able to answer your questions
  • will phone to arrange an appointment
  • will be in Springfield next week
  • would like to discuss my proposal
  • would like to meet with you next week

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