Steps On How To Write A Proposal Letter With Example

How you communicate in business has a direct impact on how others see you and your ideas. A proposal letter is a written form of communication that can have a significant impact on your career. When writing a proposal letter, your thoughts should be clear, informative, and persuasive.

What is a proposal letter?

A proposal letter is a professional document that presents your business ideas to a key decision-maker. A proposal letter might present an idea in order to persuade the receiver to read the entire document with supporting information, or it can be the proposal itself.

Why are proposal letters important?

Proposal letters are significant because they are typically the recipient’s first impression of you and your company. A concise and persuasive letter increases the likelihood that your audience will support your plan and move 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 seven steps to follow when composing a proposal letter:

• Introduce yourself and provide background information.
• State your purpose for the proposal.
• Define your goals and objectives.
• Highlight what sets you apart.
• Briefly discuss the budget and how funds will be used.
• Finish with a call to action and request a follow-up.
• Close the letter and provide contact details.

1. Introduce yourself and provide background information

• The start of your proposal should be designed to pique your reader’s curiosity. This paragraph should provide essential corporate information as well as a summary of the topic to ensure that the recipient understands what they are reading. If you are following up on a meeting, include a quick mention of it in your opening words to provide context. Mention any existing business relationships with the receiver of your letter.

2. State your purpose for the proposal

• Your proposal’s objective is to state what you propose to do or to address an issue. A proposal for a business arrangement would include explicit facts and basic conditions of the agreement, whereas a proposal to redesign a company’s website would include your understanding of the current website difficulties.

3. Define your goals and objectives

• Describe the long-term goals you intend to achieve and the objectives you will set to get there. Make your points clear and, if feasible, use figures. Instead of saying, “We will increase our productivity significantly with this loan,” you may write, “We will increase our productivity by 40% over the next year with the loan amount we have requested.” We will boost our output by adding two new machines and four more staff.”

4. Highlight what sets you apart

• If your solution solves a company’s problem, demonstrating your significant assets can help you stand out. Describe your unique project-related abilities and why you are the ideal candidate for the position. This could include previous experience with a similar issue or describing a unique procedure that produces excellent results. If your proposal is for a business venture, mention a few aspects that set your ideas apart from others. When outlining your important differentiators, use bullet points to make your features easier to read.

5. Briefly discuss budget and how funds will be used

• Cost is a crucial consideration for decision makers. Depending on why you’re writing a proposal letter, you may need to include information on how you plan to use the loan or how much your project would cost investors. You will probably not need to include a detailed cost breakdown, but having a basic notion of the budget will help investors evaluate the project.

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

• A call to action is a request to your receiver to take additional steps that generates a sense of urgency for them to proceed. This may improve the likelihood that they will respond. This step could simply be to respond to your proposal if they like to chat more.
  Also, expressing your intentions to follow up with them demonstrates that you are serious about your proposition. Inform them of the particular day you will contact them again so that they may expect your call or email.

7. Close the letter and provide contact details

• Thank the recipient for considering your idea, and invite them to contact you if they have any questions. Finish your letter with a professional closure, such as “Sincerely” or “Regards,” followed by a comma. Type your name a few lines down, then sign it above the 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 27513Dec. 5, 2022Garrett 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 branding2. Working with your marketing team to develop consistent messaging to target your ideal client3. Rebuilding the website from the foundation using the most user-friendly features4. Creating a flawless mobile design that draws mobile consumers in5. 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 777-555-0100.Sincerely,Sarah Johnson

FAQs

What are the four C’s in writing a proposal letter?

According to Rutgers University, the four C’s of a proposal letter include:

• Clear: Make your proposal letter clear by quickly identifying your goals. Follow a logical organization to make your proposal letter easy to scan and understand.
• Concise: Provide a good mix of research and purpose. Highlight the essential points by choosing a few key elements to include.
• Comprehensive: Include all necessary details or facts that may influence your reader’s decision. Provide enough information on your project goals that readers of all experience or knowledge levels can understand.
• Compelling: Highlight the importance of the project and any time constraints it may have. Re-read your letter and evaluate if its goals and timelines are clear. Conclude with a clear call to action that encourages the reader to contact you.