Usuario:MelanieArias/Taller

HOW TO WRITE A BUSINESS LETTER TO AN INVESTOR FOR YOUR NEW STARTUP ABOUT SELLING ORGANIC VEGETABLES

What is a business letter?

Business letters are one of the different types of formal communication for commercial purposes. They are used to communicate formally inside a company between business to consumers or business to business, where you can write persuasive or informative messages to your audience.

If you want to write a business letter, here we will show you how to do it. A business letter has many different parts that will help you to organize better your information. We will show you the most important parts of a business letter.

Parts of a business letter:

Salutation: The courteous gesture to begin a letter to shows respect to the receiver. You can use Dear Sir, Madam etc. As a opening salutation.

Body: It is the main part of the letter. The purpose of the letter must be stated clearly in the first line. The relevant information has to be divided into paragraphs approximately from 3 to 4 or more. The last paragraph should be a summary of the letter and offer assistance.

Closing: If you want to end your letter, closing is the part that you are searching for. You have to be really courteous with your audience and obviously you have to show respect to them, so you can use some kind of words to close your letter. You can use: Yours Sincerely, Yours faithfully, Sincerely etc.

If you want to know more information about the parts of a business letter visit: https://targetstudy.com/letters/business-letter/

Next, you have to know that there are different and specific topics on a business letter. Those are:

• Investment Proposal Letter

• Application Letter
• Acceptance Letter
• Customer Claim Response Letter
• Demand Letter
• Information Request Letter

If you want to learn more, visit the following link: https://www.learngrammar.net/a/types-of-business-letters

Now, we will focus on writing an investor proposal letter for a new startup about agricultural products and you will learn in a more detailed way how to do it.

How to write an investor proposal business letter about your startup selling organic vegetables?

If you want to write an investor proposal business letter you will have to follow these steps:

1. Understanding Investment solicitations laws and regulations.

Firstable you have to be aware of the investment solicitations, laws, and regulations. This includes the securities’ initial sale prices, the deal terms, the intended use of the funds and the financial statements and in this case your health register and a sanitary report of you high quality product.

• Understand Regulation securities issuances
• Know what information needs to be included in an investor letter
• Learn what type of investors, and how many of them, may be solicited.
• Check for state regulations.

If you want to know more information about laws and regulations for organic vegetable agriculture visit:

https://www.ams.usda.gov/grades-standards/organic-standards

https://www.ams.usda.gov/sites/default/files/media/Crop%20-%20Guidelines.pdf

https://www.agricultura.gob.ec/#  

2. Establishing Your Credibility

You need to present yourself by an executive summary, here you must show how worth it is to invest in you organic vegetables business. You have to indicate you professional progress with achievements of your experience in other managing agricultural business, demonstrating in this way your credibility based on your successes field on agricultural products. Also you will need to convey your level of expertise in the relevant industry.

• Create an executive summary.
• Explain who you are.
• Demonstrate your expertise in the field.

3. Requesting Funding

As investors generally prefer to work with concrete numbers it is important to be specific about how you will manage the investment you receive, as it is necessary to show them that you know how to manage their money in order to achieve future profits as well as analysing risks that can be presented at the time your proposal is executed and provide more information of your plans and other ways of funding that you may applied to.

• Specify how much funding you require.
• Explain how you will repay the investment clearly.
• Explain exactly how the funding will be used.
• Provide collateral if you are issuing debt.
• Only ask for enough to fund the next phase of your plan.
• Provide a risk disclosure statement.

4. Thanking Your Audience

Finally, you will have to thank to your investors. In our startup of organic vegetables first we will send thank you notes to the people we asked to invest. With these notes we will demonstrate our company business etiquette to our potential investors. It is important to be patient, especially for our startup, because if you want a good investment you have to notice that investors will take time to analyze your proposal. And then, we will put attention in the length of our letter because it has to be brief.

• Send individual thank you notes to each potential investor.
• Be patient.
• Keep your letter brief.

If you want to know more about how to write an investor proposal business letter visit these links:

https://www.wikihow.com/Write-an-Investor-Proposal-Letter

https://www.youtube.com/watch?v=oUrnlGFGChY

Bibliography

LearnGrammar.Net. (2020). Learn English. Retrieved from Learn English: https://www.learngrammar.net/a/types-of-business-letters

Lewis, M. (2019). Wiki How. Retrieved from Wiki How: https://www.wikihow.com/Write-an-Investor-Proposal-Letter

Ministerio de Agricultura y Ganadería. (n.d.). Ministerio de Agricultura y Ganadería. Retrieved from Ministerio de Agricultura y Ganadería: https://www.agricultura.gob.ec/#

Target Study. (2013). Target Study. Retrieved from Target Study: https://targetstudy.com/letters/business-letter/

USDA. (2020). USDA. Retrieved from USDA: https://www.ams.usda.gov/grades-standards/organic-standards

USDA ORGANIC. (s.f.). USDA ORGANIC. Retrieved from USDA ORGANIC: https://www.ams.usda.gov/sites/default/files/media/Crop%20-%20Guidelines.pdf

Young Entrepreneurs Forum. (2018). YouTube. Retrieved from YouTube: https://www.youtube.com/watch?v=oUrnlGFGChY