How to Write a Business Proposal Letter (2024 Update)

If you run a business, it’s important to look for new ways to market your ideas and offer your services. A common way this is done is through a business proposal letter. A business proposal letter can be two-fold – it can be sent to prospective investors or to potential customers. Whichever purpose you use it for, it’s important that it’s done right. In this article, we’ll give you some tips on writing the kind of letter that will give you successful results.

The key here is to be both professional and personable. You need to be able to clearly explain in your business proposal letter what your business does in a convincing way.

1. Check your format

The adage ‘dress for the job you want, not the job you have’ is true in many ways. When it comes to branding your business, you should brand it the way you want people to perceive your business. Formatting your letters in a clean and professional way will form your reader’s first impression.

Some ways to to format your letters include:

  • Placing your business’s logo on the top left corner of the letter
  • Inserting your business’s details on the footer of the letter
  • Placing the details of the recipient towards the top-left of the letter
  • Using the right salutation
  • Choosing an easy-to-read and clean font
  • Having a clear and readable font size
  • Inserting the date of the letter at the top of your letter on the right hand side
  • Writing an engaging and short subject line after your salutation, before the body of your letter commences
  • Keeping your paragraphs succinct and no more than 200 words

2. Address the recipient

You should do some research into who you’re sending the letter to. From this, you’ll have the correct spelling of their name and correct salutation. It is ill-advised to use generic salutations such as ‘Sir/madam’ or ‘reader’. This will make the letter appear detached and the reader may dismiss it as spam.

Above your subject line, write the recipient’s name. Underneath your subject line, write ‘Dear Ms [Surname]’ and followed by a comma. Always use Mr. and Ms. when addressing either a male or female respectively. If you want to come across even more personable in your business proposal letter, you can substitute the surname here for the reader’s first name.

3. Provide background information

Start off with an engaging statement and then launch into your background. 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, such as a mutual friend or a time that you met.

Also bear in mind, that you should be selling yourself and your business throughout the entire letter so that the reader gets a comprehensive idea of why you’re the right business for them.

4. Be honest about your goals

Now is the time to clearly state your goals and the reason you’re writing to the reader. Explain why this would be of a benefit to the recipient if they accept your proposal. Make sure to be persuasive and make it as enticing as possible, as this could be the difference between a yes or a no. A great way to figure out what to write is to put yourself in the shoes (or eyes) of your reader. What would convince you? What would keep you reading the letter until the end?

If you make any suggestions or claims, back it up with logical reasoning and an explanation. It may be worth citing statistics or using other data to give weight to your claims. Towards the end of your letter, outline your next steps. This could be setting up a time to have a phone call or meet in person. If you want to start with a more hands-off approach, you can even just include your details and ask them to contact you if they’re interested.

5. Gratitude goes a long way

Be sure to thank the reader for taking the time to read your letter. Being polite and showing professional courtesy never goes astray. Your reader will feel valued for having read your proposal. Further, finishing your letter on a positive note will increase the chances of your reader taking you up on your offer.

6. Sign your letter off

There are many ways you can sign off a letter. For the purposes of your business proposal, you’ll want to keep it professional and simple. Sign off phrases such as ‘Kind regards’, ‘All the best’, and ‘Thanks’ are all good to use here.


Joanna Smith[email protected]

Dear Joanna,

RE: A New Startup for a New Age

I’m writing to tell you about some exciting developments happening in an industry I’ve heard you’re interested in. I’m sure we can both agree that the financial industry is ripe for change. This is why I wanted to share with you the fruits of my business’s labour. I can tell you about all the problems the financial industry faces, but instead I’m going to share with you a solution.

Berry Bank is a small but rapidly growing startup. As you’ll see in the attached report, we’re seeing 15% month on month growth. Our returning customers love us, and our new customers are excited to see how we can help them take care of their finances. We’re at that point in time where our business is ripe for the picking. By that I mean that we’re seeking investors to take us to new heights. I’d be keen to set up a meeting where we can discuss this opportunity and see if there’s any room for collaboration in the future.

You can contact me on 5555 2111 or pop in to my office for a chat at anytime. Thanks for taking the time to read this letter and I hope we can cross paths soon as some point.

Kind regards,

David Citizen

6. Attach the necessary documents

If your proposal comes with any relevant documentation to help strengthen your idea, make sure to reference them in your letter. It is ideal to include any documentation that may aid you in persuading the recipient to accept your proposal. These can include growth forecasts and prior investment data.

Your letter can do wonders for your business if you write it the right way. This involves being able to write clearly and concisely, but also in a convincing way. If you’re unsure as to what to include, or want any other general advice it is worth speaking to a startup lawyer.

Don’t know where to start? Contact us on 1800 529 728 to learn more about customising legal documents and obtaining a fixed-fee quote from Australia’s largest legal marketplace.

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