A business letter is a formal way for companies and people to communicate. Even though digital communication is common now, business letters remain essential for professional connections.
In this guide, we cover what business letters are, formal letter writing, the various types, and tips for formatting. We also provide sample templates to help you get started.
What is Business Letter with Example?
A business letter is a formal way of communicating between different groups, like a company and its clients, customers, or employees. These letters use formal and clear language, keeping things short and following a standard structure.
Business letters serve various purposes, such as asking about sales, giving feedback or complaints, sharing new policies, or applying for a job. You can print the letter on paper with a company’s letterhead and signature, or send it digitally with an electronic signature.
Let’s look at a sales letter as an example of an official letter in corporate communication:
| ABC Corporation 123 Main Street Anytown, CA 12345 January 1, 2023 Utkarsh Sharma Purchase Manager XYZ Company 456 Oak Street Anytown, CA 12345 Dear Mr. Sharma, I’m reaching out to share how our services can help XYZ Company. ABC Corporation specializes in using smart computer programs to manage inventory efficiently. Our system has helped other companies save money on storage by 20% each year and improve order deliveries by 35%. With AI tools, we also ensure that your supplies match the demand by 85%, preventing shortages. Considering XYZ Company’s plans to expand the supply chain in 2023, I think our system can make your operations more efficient. Let’s set up a demo with your team in the next two weeks to discuss this further and create a customized plan for your warehouses nationwide. Please share a couple of dates and times that work for you. Excited for more discussions ahead! Regards, Jorawar Raichand Senior Account Manager ABC Corporation Jorawar@abccompany.com Ph: 098-765-4321 |
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Basic Guidelines of Business Letters
For writing business letters, you must follow a specific formal application format and include the necessary parts in the right structure. These are the essential rules:
Standard structure
An official letter format must have certain standard sections:
- Sender’s location: It shows the address and ways to communicate, like telephone or email, which is put at the beginning.
- Date: When writing the letter, you should put the date at the top, with the month in words, then the day and year. It must be right-aligned.
- Inside address: This must have the recipient’s name, official designation, and full official address.
- Salutation: In formal letter writing use salutations like Dear Mr./Ms. followed by the last name. If it is meant for organizations, use Dear Sir/Madam/Team.
- Body: Write brief paragraphs focusing on the main message and aim. Also, use simple language. Organize the information with bullet points for clarity.
- Closing: Formal sign-offs should be made based on the connection, like Sincerely/Regards/Respectfully.
- Signature: Keep space for 4-5 spaces to sign with complete name and designation.
Professional language – formal but clear writing
- You must use a tone that is formal and kind. It is important to be respectful, too.
- In formal letter writing you must have a good readability score. To achieve that, write the content using short paragraphs and sentences.
- You should check it carefully to avoid errors before you send the letter.
Printed on company letterhead usually
Many businesses use a standard design for their letters that includes the company logo, official colors, and location to show how professional they are.
Various Types of Business Letters
Business communications are useful for many purposes. The most common types of business letters are:
Sales letters
Sales inquiry letters, sales follow-up letters, and introductory sales pitch letters are focused on giving information about products or services with the intention of convincing potential customers. For example, a networking sales letter can be used to make new contacts that can generate sales.
Public relations letters
There are different kinds of business letters, and press or media release letters are one kind that sends out news information. These letters share updates about what an organization has accomplished or events it is involved in. Crisis Management letters deal with delicate matters such as customer complaints, similar to a public relations letter announcing the opening of a new branch or the introduction of a new product.
Employment/HR letters
Letters of job offer are for hiring new people, and they include conditions. We use appraisal letters to evaluate work throughout the year. Warning letters are mostly regarding policies. Promotion letters are used to announce changes made in designations.
Internal memos
Short messages are used to share information about company rules, news, announcements and reminders to the people who work within the organization. For instance, an internal memo can be used to announce a change made in the dress code policies.
A business letter’s primary function is to share important details and make official requests between two sides, doing so in a way that shows the company’s image well and helps with trade.
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Parts of an Effective Business Letter
Many companies work with standard forms, but letters made for someone specific put personal feelings into them. These things are important to create a strong letter:
- In formal letter writing the section at the top lists the names and information of both the person sending and receiving. It includes the date, what it is about, where they live or work, and how to greet them properly.
- The subject line should be clear and show what’s inside, for example, “2023 Prices” or “Need more time to finish the project.”
- Start by explaining the main reason and then give important information that backs it up, leaving out details that are not needed. Organize your writing into sections with titles and use lists to make things clearer to see. Give a call to action in the end.
- Each letter should show its aim and what it wants from the person who gets it, like “Check our new policy please” or “Tell us if you wish for extra samples.”
- A humble wrap-up is important in formal letter writing. Say, “Please get in touch with my office for more discussions,” or “I await your reply.”
Formatting Tips
A proper official application format makes it more readable and better to look at:
Font style, margins, and readability best practices
Apply fonts such as Arial, Georgia, or Times New Roman at a size of 11 or 12 points. 1-inch side margins and single-line spacing are good. When maintaining a proper official letter format in English, separate paragraphs and highlight main points. You should give page numbers if the letter needs more than one page.
Examples of business letter templates
Many businesses use writing pads that already have the company’s letterhead, areas to write the date, topics, location details, and bottom sections. Look at formal letter example documents to understand common practices in your field. Adjust them based on your relationship with the person and the usual norms. It’s important to know why business letters are used and what their role is in professional communication because they are key for sharing information, making requests, discussing agreements, and writing down contracts between businesses or people who are doing trade.
Samples of Business Letters by Purpose
Here are the examples of various business letters by purpose:
Template, example content, and analysis of sales pitch letter
Subject: Proposition to Reduce Supply Chain Costs by 30%
Introduction: Present the main service to improve supply chain management, aiming for cost reduction and other advantages such as dependability and effectiveness.
Body:
- Highlight major pain points facing customers’ supply chain operations
- Present a solution and describe how it addresses these pain areas
- Provide stats or case studies demonstrating solution effectiveness
- Break down step-by-step methodology to implement changes
- List exact cost reductions quantified at each supply chain stage
Call-to-Action: Ask for a meeting so you can learn about the specific needs and give a tailored quotation. You can also offer to provide a complimentary demonstration or initial consultation.
Analysis: Sales pitch letters persuade people to purchase certain products or services. To make a strong argument, the given template includes evidence of money benefits, feedback from customers, plans for putting it into action, and so on.
Template, example content, and analysis of PR letter
Subject: Inviting Participation in Annual Charity Drive as Key Sponsor
Introduction: A brief history of the yearly charity events’ successful outcomes and how people have consistently taken part. An explanation of the ways in which collected money is put to use.
Body:
- Dates and venue details finalized for upcoming year’s charity drive event
- Plans and new elements added to messaging, campaigns, and logistics
- Sponsorship tiers and associated benefits in terms of branding, mentions, etc.
- Cooling off period for sponsors to decide commitment level and budget
Call-to-Action: Please let us know which level of sponsorship you choose and send your logo, advertisements, and similar items to us by date X so we can add them to the print materials.
Analysis: The template for the PR letter uses a positive reputation, examples of others’ approval, and messages that make people feel good about getting sponsorships from different organizations.
Conclusion
Business letters are formal ways to share important information at work and handle relationships. The way you write, the words you choose, how you organize the letter, and how it looks make a big difference between an average letter and a winning one.
This useful guide teaches the basics of formal letter writing, different ways to use them, templates for best practices and actual examples that make writing good letters simple. The basic rules mostly stay the same even when you change the letters to fit their specific reason and who is going to read them.
Business letters have remained important for formal communication over time. Writing short, interesting letters with the right professional tone can provide an advantage against competitors and help build better relationships.
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FAQs on Business Letters
Q1. What is a business letter with an example?
Ans: A business letter is a proper way to communicate between two or more groups. For instance, a letter where someone agrees to accept a job from an organization.
Q2. What are some kinds of business letters in business communication?
Ans: There are different kinds like sales letters, letters to help customers, orders for buying things, marketing correspondence, application cover letters, credit-related correspondence and memo notes.
Q3. Can you explain the importance of formal business letters?
Ans: In the context of formal letter writing, business letters adhere to recognized templates and organized designs for the purpose of conveying messages with clarity. These letters contribute to making professional connections and good relations among entities.
Q4. What is the need and function of business letters?
Ans: They perform essential roles in business, such as communicating decisions, asking about sales, dealing with contracts and agreements, giving updates and so on. They act as records for policies and deals made between different sides.
Q5. What are the 10 importance or benefits of business letters?
Ans: Formal writing, keeping records, convincing others, importance in law, being clear to understand each other well, professional reputation, influencing decisions, managing relations and problem solutions.
Q6. What are the different types of business letters?
Ans: Some key categories are – Sales letters, Customer Service letters, Employment/HR letters, Purchase Orders, Credit & Collection letters, Marketing communications, and Memos/Circulars.
Q7. What’s the purpose of business letters in an organization?
Ans: The main purposes are – Sales & Marketing, Client management, Contracts & partnerships, Employment agreements, and Resolving issues/disputes.
Q8. What are some key objectives of business letters?
Ans: The goals of a business letter are to Inform, Record, Persuade, Resolve disputes, Negotiate terms, Offer employment, and Start business relations.
Q9. Can you share examples of various business letters?
Ans: Sales inquiry letters, Bid proposal letters, Vendor negotiation letters, Purchase orders, Job offer letters, Customer complaint responses, Office memos, and Public relations letters are the examples.
Q10. What are some common business letter topics?
Ans: Sales proposals, Payment reminders, Business event invites, New product launch announcements, and Order and payment updates are the common topics.
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