How to Write a Proposal Letter (With

Template and Example)

By Indeed Editorial Team
Updated May 25, 2022 | Published February 25, 2020

This article has been approved by an Indeed Career Coach.

How you communicate in business environments directly impacts how you and
your ideas are perceived. A proposal letter is a written form of communication
that can have a major effect on your career. When constructing a proposal
letter, your ideas must be clear, informative and persuasive.

In this article, you will learn how to write a compelling proposal letter and
structure it properly.

Upgrade your resume

Showcase your skills with help from a resume expert

What is a proposal letter?

A proposal letter is a professional document that introduces your business
ideas to an important recipient who holds a decision-making role. A proposal
letter can introduce an idea to try to convince the recipient to read a full
document with supporting information, or it can be the proposal itself.

When do you use proposal letters?

Proposal letters can be used for a variety of endeavors, including small business

projects, like requesting a loan or suggesting a new marketing plan to your
manager. Proposal letters can also be sent as a brief precursor to a larger,
more-detailed business proposal, like a government grant for a research
project.

Related: How To Get a Grant Writing Certification in 4 Steps

Why are proposal letters important?

Proposal letters are important because they are normally the first impression
your recipient has of you and your business. A clear and influential letter will
increase the likelihood of your audience favoring your proposal and moving
forward with it.

Related: How To Write a Business Proposal Letter (With Template)

How to write a proposal letter

What you include in your proposal letter will vary based on the project. Here are
some seven steps to follow when composing a proposal letter:

1. Introduce yourself and provide background information.

2. State your purpose for the proposal.
3. Define your goals and objectives.
4. Highlight what sets you apart.
5. Briefly discuss the budget and how funds will be used.
6. Finish with a call to action and request a follow-up.
7. Close the letter and provide contact details.

Related: 5 Steps for Great Business Writing

1. Introduce yourself and provide background information

The goal of your proposal's introduction is to gain the interest of your reader.
This paragraph should include basic information about your company and an
overview of the topic to make it clear what the recipient will be reading. If you
are following up on a meeting, briefly mention the meeting in the opening
statements for context. If your business already has a relationship with your
letter's recipient, mention this as well.

2. State your purpose for the proposal

Your purpose for the proposal is what you intend to accomplish, or what
problem exists that you intend to fix. A proposal for a business arrangement
would provide clear details and basic terms of the arrangement, while a
proposal to redesign a company website would discuss your understanding of
their current website issues.

3. Define your goals and objectives

Describe the long-term outcomes you plan to meet and the objectives you will
establish to get you there. Be very clear and include specific figures if possible.
For example, instead of, "We will increase our productivity significantly with this
loan," you might write, "We will increase our productivity by 40% over the next
year with the loan amount we have requested. We will increase our productivity
with the addition of two new machines and four additional employees."

Related: What Is the Difference Between Goals and Objectives?

4. Highlight what sets you apart

If your proposal is the answer to a company's problem, showcasing your

valuable assets can help you stand out. State some of your special skills related
to the project and the reasons you are the best fit for the job. This might include
experience with a similar issue or outlining a unique process that gets great
results. If your proposal is for a business venture, highlight a few factors that
differentiate your ideas from others. When highlighting your key
differentiators, you could use bullet points to list your features so they're easier
to read.

5. Briefly discuss budget and how funds will be used

Cost is a major factor for decision-makers. Depending on your reason for

writing a proposal letter, you may need to include details on how you will use a
loan or how much your project will cost investors. You will probably not need to
include a full account of costs, but providing a general idea of the budget will
give investors a better look at the project.

Related: How To Make a Budget Plan in 6 Steps

6. Finish with a call to action and request a follow-up

A call to action is a request for your recipient to take additional steps and
creates an urgency for them to move forward. This can increase the chances
that they will respond. This action might be to simply reply to your proposal if
they would like to speak further.

Also, including your intentions to follow up with them makes it clear you are
serious about your proposal. Let them know the specific day you will contact
them again so they can expect your call or email.
Related: 15 Business Follow-Up Email Templates

7. Close the letter and provide contact details

Thank the recipient for their consideration of your proposal and encourage
them to contact you if they have any questions. End the letter with a
professional closing, such as "Sincerely" or "Regards," followed by a comma.
Type your name a few lines below, then sign your name above your typed
name.

Related: How To Write a Business Proposal in 2022

Proposal letter template

Here is a template you can use as a general point of reference to ensure you
include all the important information in your next proposal letter:

[Your name]
[Company if applicable]
[Your address]

[Date]

[Recipient's name]
[Recipient's company]
[Recipient's mailing address]

[Greeting]

[This first sentence should include your name and your company. Mention any
previous meetings regarding the topic or any previous company history. Give a
brief overview of what your proposal is about.]

[In the second paragraph, state the purpose of your proposal. Include specific
information to make it clear.]

[In the third paragraph, identify the specific goals you intend to reach and the
objectives you have set up to accomplish those goals.]

[In the fourth paragraph, provide an overview of what makes your mission
unique. In the following sentences, support your claims with specific examples
of previous experiences and successes. Use numbers to quantify your success
whenever possible.]

[In the fifth paragraph, briefly discuss how you will allocate your loan or grant,
or give an overview of a project's cost to the investors.]

[In the sixth paragraph, give your recipient a call to action to urge them to act
on your proposal. Include when and how you will follow up with them.]

[In the first sentence of your closing paragraph, express gratitude and thank
the recipient for their time reviewing your proposal. Include your contact
information and let them know you are happy to answer any questions.]

[Sign off]

[Signature]

Related: 16 Best Practices for Email Etiquette in the Workplace

Top job searches near you

Part time jobs
Full time jobs
Work from home jobs
Hiring immediately jobs
View more jobs on Indeed

Proposal letter example

Here is an example of a proposal letter for a business plan:

Sarah Johnson
Pro Design LLC
555 Silver Lane
Raleigh, NC 27513

Dec. 5, 2021

Garrett Williams
Marketing Masters
1443 East Drive
Raleigh, NC 27514

Dear Mr. Williams,

Our team at Pro Design enjoyed discussing the opportunity to work with
you on developing a new website for your company. We began working on
this project last week after our initial email, and are submitting a proposed
action plan for your review.

On Dec. 10, we discussed your growing concerns regarding the design of

your website. The difficult navigation and lack of mobile compatibility were
slowly affecting customer acquisition. By making the interface more eye-
catching, user-friendly and compatible with both Android and IOS, we can
increase the amount of time potential clients spend on your website,
resulting in a greater number of leads and clientele.

Per the goal you expressed in the meeting, our objective will be to increase
your clientele by 30% and increase your leads by 40% within the next year.
This goal will be accomplished through the following steps:

1. Researching your ideal clientele to define your company's branding

2. Working with your marketing team to develop consistent messaging to

target your ideal client

3. Rebuilding the website from the foundation using the most user-friendly
features

4. Creating a flawless mobile design that draws mobile consumers in

5. Seamlessly incorporating your branding and messaging with the new

interface

Our company completed a similar project for a hotel in Atlanta eight

months ago. Our design kept users on their website 150% longer and
resulted in a 40% increase in sales over the course of six months.
For a project of this caliber, we estimate a budget of roughly $12,000 to
$15,000. We can discuss the plan in more detail if you choose to proceed,
and can adjust the budget based on your specific needs and our
recommendations.

If you would like to move forward with our proposal, please send me an
email so we can begin discussing and planning the next steps right away. I
will follow up with you through email next Thursday, Dec. 16.

Thank you kindly for reviewing our proposal. If you have additional
questions, I am available by email at sjohnson@gmail.com or by phone at
919-222-3333.

Sincerely,

Sarah Johnson