Business Letters

Every business, whether big or small, has to

maintain contacts with its suppliers, customers,
government departments and the like. In his
regular work, a businessman has to exchange
information of varied types with different
parties. Making and / or soliciting enquiries,
placing orders for goods, acknowledging and
executing orders; granting or applying for
credit; sending statements of account to
debtors; requesting for settlement of accounts
and a lot of other matters require
communication.
There are four main reasons for writing business
letters:
 to provide a convenient and inexpensive
means of communication without personal
contact
 to seek or give information
 to furnish evidence of transactions entered
into
 to provide a record for future reference
 Types of Business Letters
1. Information Letters
 Routine letters: Inquiries
Quotations
Orders
Payment

 Special Purpose: Circulars

Personnel
Agencies
Travels
2. Sales letters
 Voluntary offers
 travelers
 Employment

3. Problem Letters
 Complaints
 Concessions
 Overdue
 Accounts
4. Goodwill letters
 Greetings
 Thanks
 Congratulations
 Sympathy
 Condolence
 Approaches in Business Letters
 Direct Approach: Good newsletters, offers of
appointment, enquiries orders, promotion,
intimation fall under this category.

 Indirect Approach: Bad news conveying

letters like refusal, denial rejection falls under
this category.
 Persuasive Approach: Offers of sales, job
application falls under this category.

 The argumentative approach: When there is

a dispute, the letters will contain lot of
arguments and reasoning.

 The rough and tough letters: Sometimes we

have to deal with goondas in business. There is
the need for rough and tough letters.
 4 Cs of a business letter
1. Correctness:
The letter should be correct in all possible ways. The
layout should be correct. There are many types of
layout. Just as dress makes a man, the correct layout
makes a letter. The spacing, gaps, positioning of
points and paragraphs are part of the physical layout
of the letter.
The tone of the letter should be correct. To attain this
you must follow a tip. Imagine that you are in the
place of the receiver. What feeling you have if you
receive this letter. The tone should not be resulting,
harshly worded, demanding.
2. Conciseness
A well drafted business letter should be brief and
to the point. Brevity is the soul of wit.
Similarly conciseness is the soul of a letter.
Conciseness means the maximum of ideas in
the minimum of words.
3. Clarity
Clarity refers to clear thinking and clear presentation.
Clear thinking leads to clear writing. What we have to
say we have to put specifically and to the point for
e.g; “as early as possible”, does not have any
meaning. On the contrary “within two-days” has
more powerful and precise meaning.
Selection of vocabulary is part of the success of a letter.
Unnecessary use of high sounding words is an
indicator of artificiality. Simplicity of diction is the
hallmark of a good business letter. Between two
words with the same meaning choose the simpler and
more familiar and not unusual words.
Simple Word Difficult word
Daily Quotidian
Bad name Notorious
Round Rotund
Food Victuals
Powerful omnipotent
4. Courtesy
Courtesy can be shown in words and the tone.
Even when the occasion is a difficult one, we
have to maintain politeness. Words with
negative meaning like ‘refuse’ ‘dishonor’
‘foolish’ ‘liar’ etc have to be avoided. You can
use the expressions like ‘Most honorable Sir’,
‘with your esteemed presence’ etc. Words of
courtesy ‘Please” “sorry” should be used
where ever it is necessary. Particularly when
you give a negative answer you must be
extremely polite.
 Language of business Letter:
The language of a business letter should be very
easy, simple, direct, clear and appropriate. The
receiver of the letter need not be forced to
search for a dictionary to understand the
content.
One more thing, particularly for Indians. Indians
are very much influenced by their mother
tongue. Hence they go beyond the limit in
praising anything or in thanking anybody. For
example, in some meetings ‘vote of thanks’
takes more time than the main lecture.
Another way of avoiding embarrassment in
business letters is to use passive voice. One
advantage of passive voice is that it hides the
door of the action and highlights the action
only. In no business letters you will find, “I
give a cheque to you”, instead you will have
“A cheque was given to you”.
 Layout of a Business Letter
1. Full Block Form
2. Modified Block Form
3. Semi-indented Form
4. Hanging Indentation Form
Full block form: This is modern layout.
 Every line of the letter is typed at the left margin and

punctuation marks are omitted, except within the

paragraphs.
 There is no comma after salutation and

complimentary close.
 There is no comma at the end of the line in the
address.
 Commas within the line, in the address, are also
omitted in recent times.
 Since every line begins at the margin, it is difficult to
distinguish between paragraphs. Therefore between
paragraphs, there should be double space.
Modified Block Form
Semi Indented Form
In semi indented form the first line of every
paragraph is indented five spaces away
from the margin. The inside address is
typed in the block form and there is no
punctuation at the end of each line. Since
the first line of every paragraph is indented,
there is no need to leave space between two
paragraphs.
Hanging Indentation Form
In hanging indentation form the first line of
every paragraph begins at the margin; the
remaining lines begin five spaces away from
the margin. Since the paragraph can be
easily distinguished, no double space is
required between the paragraphs.
 NOMA FORM
Noma stands for National Office Management
Association. In this form after the heading and date
there is no salutation. The complimentary close is
also omitted. The body of the letter begins directly
after the inside address and signature is written
directly after the last line at the left or right,
depending on the layout used. This is not used in
regular correspondence. This is used for sending
message to many readers, circulars or sales promotion
letters.
In this form, the paragraphs may be in the block form or
indented form. The letter may be in the block form,
modified block form or semi indented form of layout.
1. Heading: This refers to the printed name,
telephone and fax numbers of the
organization. The name of the organization is
generally centered on the sheet.
2. Date:
 The date is typed 2 spaces below the letterhead
 The word Date need not be printed on the
letterhead
 The date may be written as: 12 December, 2007 or
December 12, 2007
 There is no full stop after the date
 The month must be written in full, not in figures or
abbreviations
 The year must be written in full in four digits.
 The use of st, nd, rd or th after the date is old
fashioned and it is not in use now
3. Reference Number: There are various ways
of representing the reference number. Next to
the central theme of the letter, the most
important part of a letter is the reference
number. It itself indicates the sub-department /
section where it should be sent for disposal.
In certain cases, the reference number will be
helpful for legal solution if any dispute arises.
Some letters have two reference numbers
particularly when there is a series of letters on
certain matters.
4. Inside Address: This is the name and address
of the receiver or the organization. It is typed
two spaces below the date line at the left
margin. It should be two spaces above the
attention line. If there is no attention line it
should be two spaces above the salutation in
the left margin.
5. Attention Line: When many letters are to be
written to a company on a particular
problem, we use the attention line to draw
the attention of a particular person handling
that problem. The attention is typed two
spaces below the inside address at the left
margin.
6. Salutation: The British English is very particular
about the correct salutation in letters. In some cases,
the correct salutation is itself an indication of the
knowledge, education, character and qualities of the
writer. It is placed two spaces below the attention
line. If there is no attention line it is two places
below the address line.
The normal salutation in business letters is ‘Sir’ less
formal is ‘Dear sir’. Everything depends on the
relationship between the writer and receiver. If the
addressee is the lady you have to write, “Dear
Madam”. If there is more than one woman, you
should write ‘Dear Madams’
7. Subject line: This line is strike to pinpoint the
theme of the letter at one stroke. The subject
line is important in the sense that in one
glance we decide the urgency of the subject
matter to be dealt with. It is typed two spaces
below the last line of the inside address or
two spaces below the salutation.
8. The Body: It is that part of the letter which
contains the message or the information to be
communicated, and is of course, the most
important part.
In the beginning it must be made of any previous
correspondence. Thereafter the main point
should be mentioned. Depending on the central
idea of the letter, paragraphs must be typed. In
the final paragraph, what exactly is the action
you want and how you want this to be done
must be clearly stated.
9. Complimentary Close: The word
‘Complimentary’ means ‘praise’ ‘honour’ and
in letter-writing it refers to respectful taking
leave. This is a question of good manners or
etiquette.
It is typed two spaces below the last line of the
letter. The complimentary close must agree
with the salutation. There is always a comma
after the complimentary close except in the full
block form.
Example: Yours faithfully, Yours respectfully,
Yours sincerely, Yours obediently
10. Signature: The signature must always be
hand written and in ink. The name of the
signatory is typed in brackets three spaces
below the complimentary close to leave
space for signature.
11. Enclosures: If anything is attached to the
letter, it must be indicated in the enclosure. It
is typed two spaces below the identification. It
is typed in the abbreviated form.
Example: Encl:
12. Post script: This latin word means written
afterwards. “when the letter is going to end,
you remember something important and you
add it as an after thought. Normally in formal
letters postscript is not added. It is very
important that the whole letter is rewritten
including this point. It is typed as P.S
 Forms of layout
1. Stationery
 Paper: Letters should normally be typed on
good bond paper. Bond paper has a fine
texture. Letters typed on a bond paper looks
graceful.
 Size: Standard sheet measuring 8.5” X 11”
are preferred these days. This size has found
wide acceptance because it is reasonably
large and its dimensions are quite
proportionate.
 Colour: Most business letters are written on
white paper with black print. It at all there is
some need to use coloured paper, light tinted
ones and pleasing hues must be chosen. The
colour of the typewriter ribbon must suit the
colour of the paper.
2. Typing: Handwritten letter are now out of
fashion. Most business letters are typed. It
saves time, besides giving a nice look to your
letter.
3. Margins: This gives additional look to the
letter usually one inch margin on the left 1.5
inch margin are permitted.
4. Punctuation:
a. Full stop(.): This is used at the end of a
sentence, or after a short form of words. Co.
Ltd.
b. Comma(,): This separates the words in a
series e.g. love, kindness, sympathy
In a letter it is written after a salutation (sir,)
and the complimentary close
It is written in date e.g. December 12, 2009
It is used in between sentences
c. Colon(:): To indicate that something is
following the sentence. E.g. All of them
stood up: Mr. x, Mr. y
You are requested to arrange these items: a
typewriter, ribbons, pencils and erasers.
d. Semi-colon(;): It indicates a pause longer than
a comma; but shorter than a full stop. E.g.
She was late; consequently she was marked
absent
e. Quotation marks or inverted commas
(“…”): The direct words of the speaker, the
words one actually hears are enclosed in
inverted commas.

f. Apostrophe (‘): An apostrophe is used in

place of omitted letters e.g. doesn’t for does
not, he’ll for he will.
Customer’s view, Somali’s book
 The ‘You’ attitude
We know that we are primarily interested in
ourselves. Naturally, every other person is
interested more in himself than in a third party.
If follows, therefore, that when we write letters
to others, they are effective and the readers
respond to our letters well only when we write
from their point of view. So to make our
letters more effective, we must avoid I’s and
w’s and have as many you’s as possible. In any
case we should not forget the reader’s point of
view in the whole of our letter.
 The negative aspects of Business
letters:
1. Beating out the bush: This means that
without straight away plunging into the
central point, you go on telling stories
unnecessarily
2. Use of technical jargon: The common is not
aware of technologies of vocabulary. For
example, the fields of stock market has many
technical words, ‘the bull’, ‘the bear’….etc.
3. The use of high sounding words should be
avoided as much as possible.
Different types of Business letters
1. Sales letters
2. Letters of complaint
3. Letters of enquiries
4. Reply to Enquiry
5. Letter to customer
6. Interdepartmental letters
7. Circulars
8. Collection letters
9. Claim letters / Adjustment letters
10. Thanks giving
11. Letter to external Agencies
12. Letter to the Press
13. Correspondence with the Government
14. Job Applications
15. Resume
 Sales letters
They are written to customers and prospective
customers about new services, new products,
important matters regarding the price, new
offers, concessions, discounts etc. The purpose
is to attract the customer to your side; therefore
the tone should be persuasive, promising, kind
and gentle and full of genuine guarantees.
Since sales letters are sent to many the beginning
and the end are general. There is no
salutation and complimentary close. The
sales letter has the following construction:
 Catching the attention
 Arouse his desire (Create a want)
 Convince
 Motivate
We give below a few methods of writing
opening sentences for sales letters.
1. Striking statement
 Save 45% on your electricity bill
 You can earn an extra Rs. 5000 per month if
you…………..
 We refund if you are not satisfied
2. An important fact
 You want to save. Shave with our blade
 Meet 100 I.A.S officers produced by us

3. Giving a concrete example

 Mr. x used our product. Now his family is
with us
 Gandhiji was our customer. Why not you?
4. Special offer
 Reduced price, now only, then, never
 For every purchase, a new gift
 For our customers only, free medical check
up

5. The central selling point

 Why spend hours cooking. Buy our stove, it
reduces cooking time by 50%
6. Putting questions
 Is increasing electricity bill troubling you?
 Are you burdened with….? Approach us
 Why worry about arrangements? We are here

7. Trial offers
 Just phone us. The cooker will be at your
door. Use it for 15 days. After your
satisfaction, call us up to pay. Otherwise, we
are ready to take it back.
8. Guarantees
 Take our plastic water tank. If it leaks within
a year, your money back or a fresh tank

9. Certificates by Users:
 Ours was the best exhibition. See the prize
awarded
 The Finance Minister’s certificate is given
here
10. Conclusion:
 Do not miss this
 Never buy it from others
 Hints for drafting sales letters
1. Begin your letter in a striking manner in order
to arouse the reader’s curiosity and tempt
him to read further.
2. Give a vivid description / explanation of the
product, service or proposition being offered.
3. Make a appeal to the reader by telling him
how the article benefits him. Highlight the
plus points.
4. Convince the reader by giving evidence:
profits, testimonials, references to user’s
experience etc.
5. Close the letter by telling the reader exactly
what to do and how to do it so that the action
becomes easy.
Letters of Enquiries:
When a buyer wishes to get some information
about the quantity, price, availability, etc., of
goods to be purchased or about the terms of
sale, etc., he writes a letter of enquiry to the
seller. There are four types of enquiries:
1. Unsolicited enquiry: An enquiry made by a
person on his own initiative.
2. Solicited enquiry: An enquiry made in
response to the seller’s advertisement and
publicity.
3. Enquiry for some favour: An enquiry not
about goods but about some other
information, may be about some special price
or some favourable terms.
4. Routine enquiry: An enquiry made by an old
buyer in the usual course of business.

Enquiries should be promptly attended to.

Prompt reply will give a good impression of
the company. First enquiry reply should give
all information about prize, terms, sales and
discounts.
Opening sentences
 We would be grateful to get details of your
prices…………..
 We would appreciate details of ………..
 We should be pleased to get information
about the prices and terms on which you
could supply ……….
Closing sentences
 We would really appreciate an early
response
 Since our stocks are totally exhausted,
kindly treat this enquiry as urgent.
 Hints for drafting an ‘Enquiry
letter’
 State the purpose of your letter, whether you
need goods, service or information
 Request for price-list, catalogue, etc.
 Ask for samples or demonstration, if needed
 State the details of your business and what
you are interested in.
 Ask for terms related to discount, mode of
delivery, packing etc.
 Give an idea of the quantity you need in order
to enable the supplier to quote the best possible
price.
 If you are asking for concessions, give reasons
– large and continuous orders, your ability to
promote more sales in your area, etc.
 Quotation letters:
A letter of quotations is an offer of sale in
response to an enquiry. It mentions details
about price. Mode of payment, details about
work execution, quality of the work,
certification of the work.
Complaints and Adjustment Letters:
Mistakes are natural in any field, particularly in
the field of business. From the time the order is
received till the goods reach the customer,
many persons are involved, and there is every
possibility of mistakes being committed by
someone.
 Sources of mistakes giving rise to
complaints
 Incomplete or defective order
 Wrong directions to the dispatch section
 Mistake by the accounts section in preparing
the invoice.
 Despatch section carelessly despatches goods
of wrong quality, size, brand, pattern, colour
etc.
 Defective packing that might lead to the
damage of goods in transit.
 A Complaint letter should have the
following characteristics:
1. The thing that has gone wrong
2. Inconvenience and loss
3. Request to the man-in-charge
4. The adjustment needed
 Certain guidelines for letters of
complaint/Replies
 If the tone of the letter is abnormal or
extreme, there is no point in giving it tit for
tat or paying in his own coins.
 Establish a continued friendship and assure
satisfactory service in future.
 If the claims are correct, do it with pleasure.
 If the company is at fault, admit it
magnanimously and offer immediate
redressal.
 Be grateful to the customer for the error
pointed out.
 There is no point in putting the blame on the
customer. Write to him a personal letter
 No question of delay or dragging on.
 Bring back your relationship to normal
 Make others feel that your regret is genuine.