How To Write a Business Proposal Letter (With Examples)

By Indeed Editorial Team

Updated May 27, 2022 | Published February 4, 2020

Updated May 27, 2022

Published February 4, 2020

Businesses often work with one another to gain mutual benefits. The collaboration is intended to produce a specific result, such as introducing a proposal for a product or service to a prospective client or providing solutions to problems facing the other party. One of the effective methods to communicate the desire to work together is a business proposal letter.

In this article, we explain how to write a business proposal letter and examine a few sample letters.

What is a business proposal letter?

A business proposal letter is a document used to invite or propose cooperation between organizations. The cooperation can be in the form of agreements to supply products and or services and outlines the benefits that the cooperation provides.

You can send a business proposal letter as part of a response to a request for information about your business or to prospective clients to introduce your company and the products you provide. Here are some uses of a business proposal letter:

  • To propose a partnership

  • To provide marketing services

  • To ask for sponsorship

  • To propose an internal collaboration

  • To provide a solution in the form of a service or product

Related: Integrative Negotiation: Definition, Tips and Examples

How to write a business proposal letter

There are a few steps to take to ensure that your business is well-formatted and compelling:

1. Create a business header

Write your contact information at the top of the letter followed by the date. Then add the contact information of the recipient. If you're sending an email proposal, you'll use a subject line with your name and general purpose instead of a business header.

2. Address the recipient properly

Begin the body with a formal salutation using the correct title of the recipient, such as "Mr.," "Ms." or "Dr." For example, "Dear Dr. Mong."

3. Include relevant background details

In the first paragraph, address the subject of your proposal. You could describe the challenge the recipient faces or explain the project or event you're working on.

4. State the purpose of the proposal

In the next paragraph, state your reason for the proposal. Be as clear and concise as possible with the terms and any relevant statistics that demonstrate your claim.

5. Include a request to follow up

State the potential benefits to the recipient, along with a time or opportunity for further contact.

6. Close the letter appropriately

Thank the recipient and invite a contact to answer questions. Suitable closings are "Sincerely" or "Regards" followed by a comma with your signature and name printed two lines below.

7. Include supporting documentation

Attach any sales records, forms the recipient may need to fill out or additional information about your project or business.

Related: Guide to Thank You Notes

Business proposal sample letter for marketing services

This sample proposes an agreement to provide public relations and marketing services:

Timothy Caldwell Johnson
Johnson Public Relations, Inc.
976 Stratmore Ave.
Houston, TX 75822

March 17, 2019

Mr. William Billington, Marketing Director
Houston Preventative Services
62350 Hollingwood Drive
Houston, TX 96703

Dear Mr. Billington,

I am Timothy Johnson of Johnson Public Relations, and after having been involved in the area for a few decades, I understand the frustrations that you may face regularly. If you are like other marketing directors, you are very likely to face the continuing challenge of trying to determine how to find the best service to fill your needs for public relations. I have some information that you should find appealing.

As a premier PR firm, Johnson Inc. has been providing public relations services to companies like yours for more than 25 years. We thoroughly understand the needs of marketing firms in our locale and know how to provide the best services for your needs.

We are justifiably proud of our record of providing highly rated customer services, with an equally responsive 24-hour turnaround time on almost every request. With a dedicated team, we provide services to help you handle or manage situations of crisis, promote positive messages about your company, handle requests from the media and positively manage your reputation.

We have three customizable options that we would love to provide for you:

  • A full representation package: With this all-inclusive package, Johnson, Inc. would manage your company reputation, create positive publicity, teach your staff effective methods for handling the media and provide support for managing crises. We also provide encouraging internal PR support to help your staff be fully appreciative and supportive of your company's mission.

  • A comprehensive external representation program: With this alternative, Johnson, Inc. provides only strong public-facing support. We will help you with the development of a crisis-management response plan and employ supportive methods to engage the media in providing positive coverage.

  • The crisis management and control package: It is our sincere hope that no crises ever occur at your company, however, our experience shows that the most effective part of mitigation is to be prepared. We will help you to develop a full crisis management and response plan to help your company return to normal if something does go wrong.

I would love to meet with you and demonstrate how we can eliminate your public relations concerns. I can call you on Monday, March 17 to address your concerns and answer questions about the three options that we can offer we offer.

Sincerely,

Tim C. Johnson
Chief PR Officer
Johnson PR Inc.

Business proposal sample letter for sponsorship

This sample proposal is for sponsoring an annual event:

Susan McDaniel
Handy Helpout Association
987 Portsmouth Blvd.
Philadelphia, PA 28977

July 22, 2021

Mr. Jordan C. Bloomfield
Bloomfield, Mercury, Ford & Lincoln
2589 Mainstreet Rd.
Philadelphia, PA 36669

Dear Mr. Bloomfield,

On behalf of Handy Helpout, I would like to thank you for the very generous support you have given to our annual holiday celebrations over the last few years.

This year, we once again have an available sponsorship opportunity at our holiday extravaganza and silent auction. Last year, thanks to our generous sponsors like yourself, we raised more than $200,000, which allowed us to provide clothing, food, coaching for job interviews and assistance with resume preparation for thousands of clients in 2020.

This year, the 2021 event is being held on Friday and Saturday, Nov. 15 and 16, with three levels of available sponsorship:

  • The Platinum Sponsor: We feature your company name and logo on our prominently displayed banner and all advertising and marketing material for the event advertising. We feature your company logo prominently on the event T-shirt and welcome two representatives from Bloomfield, Mercury, Ford & Lincoln at our annual dinner on Sunday, November 16. The cost of this sponsorship is $7,000.

  • The Gold Sponsor: We prominently feature your company name and logo on the banner and include your logo on the event T-shirt. The cost of this sponsorship is $2,000.

  • The Silver Sponsor: We display your company logo on the event T-shirt for a cost of $1,000.

We look forward to a continued relationship with Bloomfield, Mercury, Ford & Lincoln to make our 2021 holiday extravaganza event even more successful than last year.

I look forward to speaking with you on Nov. 2 to discuss our initiative and answer any questions you may have.

Sincerely,

Susan McDaniel
Coordinator
Handy Helpouts

Related: Letter of Introduction: Overview and Examples

Retail investor business proposal sample letter

Here's an example of a business proposing an investment venture:

Stanley Robertson, CEO
2899 N. Pine Valley Road
Anderson, CO
(555) 555-0198
stanleyrobertson@email.com

July 28, 2018

Superior Investments, LLC
Leonard Gilman, Investment Coordinator
5787 W. Peterborough Rd., Ste #1513
Anderson, CO

Dear Mr. Gilman,

Our company has undertaken an ambitious venture to increase our brand awareness, and we have already seen some promising results.

Here are a few recent accomplishments:

  • An increase of over $250,000 for regional retail sales in the last quarter

  • An expansion in new retail markets in the Southeastern region

  • An increase in online sales by 27% in the last two quarters

We are proud of these achievements and have reached an important milestone in our progress. We hope that it demonstrates to our valued investors such as yourself that we are seriously committed to achieving the mission.

At the current stage of our progress, we now have an exciting investment opportunity available for Superior Investments. We propose an investment of $500,000 which would allow us to continue our current aggressive expansion while providing your company with outstanding returns. We are willing to provide a return of 35% on your investment over the next seven years.

We have very little doubt that we can complete our expansion initiative as the response received from customers about the quality of our products and customer services have all been positive. We truly appreciate you and your company being part of the story of our success and continue to believe that building and maintaining mutually beneficial business relationships is the key to success.

I greatly appreciate the time taken to read this proposal and would be happy to work out further details. For more information, or if you have any questions, please feel free to contact me. We greatly appreciate your support.

Sincerely,

Stanley Robertson, CEO

Explore more articles