How to Write a Proposal Letter (With

Template and Example)

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.

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.

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.
How to write a proposal letter

What you include in your proposal letter will vary based on the project. Here are
some common details you should consider including 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.

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."
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 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.

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.

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.

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]
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
December 5, 2019
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 December 12th, 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, December 12th.
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