An effective well-written business proposal letter can be the difference between your business idea floundering or being a success. Good communication skills also impacts how others perceive you and more likely to engage with you as a business. We have created a simple checklist to ensure you draft a business proposal letter that looks professional and attracts investors and partners alike.

It is always preferable to engage with a business lawyer for guidance about your business ideas and the legal documents you will need in place.

How to write a business proposal letter

Step One: Format the letter

A well formatted letter will ensure that all the information required is presented in an easy to read format, ensuring that it does not look cluttered or unprofessional. It is preferable to include an eye-catching letterhead to allow your letter stand out and memorable to potential partners. Make sure to include the essentials like your name, address, ABN and ACN if applicable and contact details so they can respond.

Do not forget to include the date and address of the recipient to the left of the letter. Below this should then be a subject line, which summarises the purpose of the letter to make it clear to the recipient your goals in creating a partnership with them. An example would be ‘Re: Proposal to forge new partnership”.

Step Two: Address the recipient

Under the subject line, write the recipient’s name including their correct title, first and last name following the word ‘Dear’ and followed by a comma. It is important to address who you are talking to instead of a standard ‘to whom it may concern’ as personalising your proposal will make the recipient feel important. Always use Mr. and Ms. when addressing either a male or female respectively, with the exceptions of Dr. or Prof. if the recipient is appropriately accredited and Mrs. or Miss. if explicitly requested. This is to ensure that you don’t disrespect a prospective partner by selecting the wrong title.

Step Three: Provide background information

Start the letter by giving a background to the subject matter of the letter. An example of this would be an introduction to your business, a brief summary of the proposal and discuss any matters that would be relevant to you and the recipient, like a recent meeting or phone call. Now is also a good idea to sell yourself and your idea and why it you would make a good business partner or someone to invest in.

Step Four: State your goals

Now is the time to clearly state your goals and the reason for the proposal. Explain why this would be of a benefit to the recipient if they accept your proposal. Make sure to be persuasive and jazz up your proposal to make it as enticing as possible, as this could be the difference between a yes or a no. If you make any suggestions, back it up with reasoning and an explanation. Include any actions that you’d like to happen if needed, like a follow up or to arrange a meeting Remember to keep it succinct and straight to the point, you don’t want to disengage the recipient.

Step Five: Thank the recipient

Be sure to thank the recipient to the proposal for their consideration and motivate them to contact you for any further queries. To finish the letter sign off with either ‘Sincerely’ or ‘Kind regards’ followed by your name two or three lines below with your signature in between.

Step Six: Attach the relevant documentation

If your proposal comes with any relevant documentation to help strengthen your idea, make sure to list them all under the heading ‘enclosures’ underneath your signature. It is ideal to include any documentation that may aid you in persuading the recipient to accept your proposal.
Examples of relevant documentation to attach could be your resume, a list of references or certificates and accreditations that will strengthen your credibility as a director.

If you require any further assistance with your new idea, make sure you consult with a business lawyer that can help you with every facet of your business.

Require other documents for your business? Contact a LawPath consultant on 1800 LAWPATH to learn more about customising legal documents, obtaining a fixed-fee quote from our network of 600+ expert lawyers or to get answers to your legal questions.

Logan Tennyson

Logan is a Paralegal working in our content team, which aims to provide free legal guides to facilitate public access to legal resources. With a passion for commercial and media law, his research explores how the law is adapting to emerging technologies and how this affects consumers and businesses alike.