how to write a company proposal letter

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How to Write a Business Proposal Letter (+ Template)

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how to write a company proposal letter

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A business proposal letter is a one-page document that serves as the persuasive summary or cover letter for a comprehensive business proposal. Its goal is to briefly highlight the most important aspects of your full proposal. While not required, it’s good to use if you want to convey a higher level of professionalism, to build trust or credibility, to provide added context, or to deliver a short pitch. You can then send the letter in an email or as a physical copy.

Make sure your proposal letter introduces a professional and memorable business proposal for the best results. Hire a design expert on Fiverr to custom-design a business proposal for as little as five dollars. Fiverr is a gig-based marketplace with experts offering editable proposal designs you can customize for each prospect and send as a PDF. Check out the top gigs below:

How Business Proposal Letters Work

A good proposal letter is formatted as a single page containing 3-4 paragraphs and fewer than 400 words, with five key elements. To write a formal business proposal letter that encourages your prospect to continue reading to your full proposal follow these steps:

  • Start with Business Headings: Identify who the letter is intended for and who it’s from, listing all parties' contact information.
  • Write an Introduction: Use a professional greeting to introduce yourself and your company then remind your prospect of why they're receiving this proposal.
  • State Your Purpose: Explain the purpose of your proposal, including the problem, solution, and key benefits.
  • Have a Call-to-Action: Clearly tell your prospect what is expected of them to move forward from this point.
  • Finish with an Outro and Signature: End the letter with a friendly and personal thanks to the prospect and reiterate your contact information.

Once you draft your business proposal letter, send it to your prospect along with your full proposal. You can mail a hardcopy with the letter on top and the proposal underneath, or more commonly, you can email it. If your contact is the decision maker, paste the letter into the body of an email and attach the proposal. If your contact might forward your email to others, also make the letter the first page of the proposal.

Remember that just like your full business proposal, your proposal letter should be customized for your unique prospect. It should also accurately summarize and tease your proposal, so make sure the information between the two documents are aligned and build off each other. For information on writing a full-blown proposal and how it ties into your proposal letter, read our article on how to create a business proposal .

In some cases, people use the terms “business proposal letter” and “business proposal” interchangeably. This refers specifically to a  one-page business proposal . Businesses selling smaller projects or drafting a proposal to companies they have a good relationship with often use a one-page proposal containing both the letter and details.

Free Business Proposal Letter Template

We’ve created a free business proposal letter template that incorporates the crucial elements listed above, as well as examples of what to write for each. Personalize it to your specific sales situation by simply replacing the words in parentheses (aka, the fields) with your own writing. We’ll show you how to do this throughout the article, incorporating screenshots of each section.

Free Business Proposal Letter Template

Standard Business Proposal Letter Format

Check out each of the major components of an effective business proposal letter below, starting with business headings, continuing on with an introduction, statement of purpose, and call-to-action, and wrapping up with a strong outro.


Statement of purpose, call-to-action.

Business headings provide a formal touch for your business proposal letter and include contact information for your business as well as the recipients, such as the business name, address, and points of contact. For more informal business proposal letters or proposal letters you send via email, you can consider omitting this portion of your letter.

business proposal letter template business headings

Your introduction is an opportunity to re-introduce yourself and remind your lead, prospect, or recipient why you're sending the associated proposal. This also gives you a chance to provide any relevant social proof to prime them before reading your full proposal, as well as tease the overall purpose.

business proposal letter template introduction

This acts as a summary of the most important contents of your business proposal: their problem, your solution, and the benefits the prospect will receive. This gives you a chance to highlight the most important points of your proposal and accurately communicate your elevator pitch or USP for the scanning reader.

business proposal letter template statement of purpose

Conclude with a sentence that tells the reader what to do next. Usually, this next step will be to read your attached proposal, but it can also be to request a call or meeting to review the proposal together or to ask and answer any questions that may have arisen after reviewing. If this is the case, use concrete language with a specific ask, such as "use my Calendly link to book a time to connect this week."

business proposal letter template call-to-action

End with a polite outro stating how excited you are about the opportunity to work together. Then, sign the document if it's a physical copy, or use a professional email signature if you're sending it via email. Include your contact information in the signature so they can reach you.

business proposal letter template outro and signature

Now that you understand the purpose of each section of the letter, follow our step-by-step instructions to write your own business proposal letter.

How to Write a Business Proposal Letter

To write a letter that effectively introduces and summarizes the proposal, draft each of the five elements in order. Below, we'll show examples of each element from our free template. Be brief and to the point, including only the most crucial information and using clear, simple language to help the reader remain engaged. Personalize the letter so the prospect feels that you’ve listened to and truly understood their specific needs — this can inspire them to work with you over your competitors.

1. Fill Out Your Business Headings

Add business headings to the top left-hand side of your letter, listing standard information about both your business and your prospect’s. List full names, job titles, companies, addresses, and contact information, as shown below. This helps the reader know this letter is for them and which business it’s from, which can be helpful if they’re assessing multiple vendors.

business proposal letter business headings template example

Some business proposals also include the date at the top, above the business headings. Some make their business information a header across the top of the page and paste their logo onto it. Do what you think looks best, and combine rows to save space if needed. This element is essentially a formality. As long as it looks organized and professional, it won’t impact the success rate of your proposal. If it looks sloppy, it might hurt it.

Since including business headers is more appropriate for letters that appear as the first page of a full business proposal, if I was writing a proposal letter in the body of the email, I would skip this step.

2. Craft a Compelling Introduction

The introduction element is the beginning of the body of your proposal letter, starting with a greeting like “Dear {Prospect Name} ” and ending with a segue into the statement of purpose. Personalize the introduction to the prospect’s unique situation to make them feel understood; do this by beginning with background information that you’ve uncovered through conversations with them, like the agreed-upon value proposition. Keep it under 100 words, if possible.

Let’s go over the bolded fields in our template using the screenshot below. Include individual and business names, plus the following:

  • First or Last Name:  Whether you choose Frank or Mr. Underwood depends on your relationship with the prospect. If uncertain, it’s best to stick with the formal Mr./Mrs. Also keep in mind that they might go by  other pronouns or honorifics  like Mx.
  • Date of Last Conversation:  The last time you spoke with them, they should have asked for a proposal or shown interest in moving into the next stage. Bring this meeting back into their memory by including the date it occurred. This makes it personal.
  • Agreed Value Proposition:  At the prior meeting, you and the prospect should have agreed on the value proposition: why the prospect should choose your solution. Write it here, mirroring how they said it out loud or in their email so they remember it easily.
  • Number of Years in the Industry:  Write how long you’ve been serving customers like them. This harmless brag builds your credibility as an expert.
  • Their Business Type:  Business type could be “enterprise martech brands,” “freelance writers,” or “property management companies managing over 1,000 units.” Tell them that you’ve served companies just like theirs.
  • Eye-Catching Benefit:  Before segueing into the statement of purpose, hook them in with another benefit of your solution. Ideally, this is one they’ve expressed excitement about in your past meetings.

Here's how these prompts fit into our free template:

business proposal letter introduction template example

3. Clearly State the Purpose of Your Proposal

Now it’s time to write the statement of purpose element of your business proposal letter. This is arguably the most critical portion of the letter, so it receives the greatest length: about 175 words. It summarizes what the prospect will learn in the attached proposal and the proposal’s purpose: to show them how you’ll help them solve a problem or achieve a goal. This element should also highlight some key benefits or your unique selling proposition (USP) to increase their curiosity.

Below are the statement of purpose fields and how to complete them:

  • Prospect’s Main Problem:  This grabs their attention since it’s what they want solved. Also, include any associated costs caused by the issue. Dedicate 1-2 sentences to this.
  • Your Product or Service:  Explain the solution you’re offering. In one sentence, describe what your solution is and how it works.
  • Benefits List:  List the three benefits they’ll receive from your solution. This gets them excited about the proposal. Consider making benefit #3 a key differentiator (aka, a unique selling proposition) that paints you as separate from and above the competition.
  • Any Other Crucial Proposal Elements You Want to Mention:  Your proposal often includes more than just the three fields above. List with commas what else they’ll find inside, whether it’s case studies or a full analysis of their situation.

We've included these elements in our free template using paragraphs and bullets:

business proposal letter statement of purpose template example

You may be wondering if cost should get a spot in the letter. It’s generally best practice to exclude cost. There’s a reason the pricing comes at the end of the full proposal — by then, the prospect will fully understand the value you offer, which makes the cost more digestible. The only time you’d include your cost is if it were a main selling point (perhaps your cost is far below the competition’s), in which case you’d include it in the paragraph after the bulleted list.

4. Make Your Call-to-Action

Your call-to-action (CTA) is where you tell the prospect what you want them to do next. This is typically to open and read the attached business proposal. You can also ask them to call or email you when they’ve finished reading it or as questions arise, or to set up a meeting in advance so they’ll finish reading it by the time you connect again. Sometimes, it'll be appropriate to include a contract and ask the prospect to sign it if they have no concerns.

Here are four potential CTAs to use:

  • “You can find the proposal below, attached to this email. Please give it a read, and feel free to book a meeting using my Calendly link if any questions arise or you'd like to go over the business proposal in detail."
  • “Please read the proposal below and give us a call or send us an email when you’ve finished to set up time to talk about the proposal, answer any of your questions, and discuss the possibility of working together.”
  • “Please read the enclosed proposal. To make sure you have all the information you need, let’s put some time on the calendar for me to answer any questions and hear your thoughts. Are you available next week at {Three Date/Time Options} ?”
  • "The proposal is attached and includes all of the details we discussed on {Day of Last Conversation} . Please let me know if any questions come up. If all looks good, you can sign the contract on the final page."

As you can see, each CTA tells the recipient to read the proposal and lays out next steps for what the prospect should do after they’ve finished reading. This tactic is effective because it solidifies next steps. We recommend going with an option that politely nudges the prospect to commit to a future meeting during which you can discuss the proposal and move the sale to a close. This accelerates the sales cycle velocity.

If you prefer a gentler approach, use the CTA in our template:

business proposal letter call-to-action template example

5. End With a Friendly Outro & Signature

Your outro should be 1-2 sentences expressing confidence in your proposal while also thanking the prospect for considering you as a potential partner, supplier, or vendor. This ends the letter on a friendly note and also gives one last reason why reading the proposal will be beneficial. Below the final line of the body, sign off using “sincerely” and your full name or email signature.

business proposal letter outro and signature template example

A handwritten signature adds a personal touch. If you don’t already have an esignature, you can easily include one by signing a piece of paper, taking a photo, then pasting that image into the Word, Google Docs, or PDF document of your letter.

In addition to the template we’ve given you above, it can also be helpful to review and learn from real-world examples of proposal letters. Check out the specific examples below for guidance in creating your own.

Top 4 Business Proposal Letter Examples & Samples

Take a look at these four business proposal letter examples from around the web by scrolling left and right below. You can learn new techniques, formats, and phrasing from each of them. The more you study other businesses’ proposal letters, the better you’ll be at crafting your own.

Product Business Proposal Letter Example

business proposal letter product business proposal letter example

This letter focuses on and flatters the recipient and then talks about their company and product. While it's ideal to build a relationship with your prospect before sending them a proposal, this letter's first paragraph is a solid option if you haven't had much of a chance to speak with your prospect but you want to get their guard down immediately so they'll read the rest of the letter and open your proposal.

Marketing Agency Business Proposal Letter Example

marketing agency business proposal letter example

Because the letter makes a few claims (e.g., a 30% acquisition cost reduction), the full proposal should explain how the seller arrived at each number. This is a great example, but keep in mind that it lacks two key elements: an adequate CTA and a signature. We recommend including both.

Accounting Services Business Proposal Letter Example

accounting services business proposal letter example

The attached proposal seems to focus mainly on the costs of the service, so this letter is shorter than usual. This is okay — different selling scenarios call for different-sized letters. If you have a long-term client who wants another product delivery but doesn’t want the whole “dog and pony show,” you may just introduce the cost summary in the letter.

Web Developer Business Proposal Letter Example

business proposal letter web developer business proposal letter example

Some businesses do this to save time. If you’re pitching a current client on a product or service upgrade, they might tell you they don’t need the full proposal. Smaller businesses like freelance writers or web designers might not have the bandwidth to craft a long proposal. We have an article on a  one-page proposal that goes in depth on this concept and how/when to use one.

Oftentimes, it's best to start with a template and then modify it to best fit your business and to incorporate ideas from examples you see online. Then, you can simply tweak your new template for each unique prospect.

Benefits of a Business Proposal Letter

A business proposal letter isn’t required when sending a full proposal. However, it has many benefits, and you should strongly consider it. Salespeople write business proposal letters for these reasons:

Build Trust

Professionalism still plays a key role in most business transactions. Prospects trust those who put in the extra effort throughout the sales process.

Hook the Prospect

The letter sparks curiosity in the reader and motivates them to read the full proposal by outlining the beneficial information they’ll find within.

Give Your Prospect Context

The letter outlines the content of the proposal, which can improve reading comprehension rates by telling the reader what to look for.

Communicate With Other Readers

Oftentimes, your business proposal will be circulated internally. If this is the case, use your letter to communicate your benefits to other readers.

Overall, use business proposal letters on a case by case basis, rather than trying a one size fits all solution. Your prospects will appreciate the time and effort that personalized business proposal letter will reflect.

Frequently Asked Questions (FAQ)

How do business proposal letters & business proposals differ.

An official business proposal is a multipage document or presentation that outlines all terms of a deal between you and a prospect. This includes a cover page, table of contents, executive and problem summary, proposed solution, qualifications, timeline, pricing, and terms and conditions. Proposals can act as a legitimate contract if you wish to include a signature field. Proposal letters act as an introduction to this entire presentation by explaining its purpose to the prospect.

How Do Business Proposal Letters & One-Page Proposals Differ?

One-page proposals are a single-page document that clearly defines the solution, benefits, and terms of a deal between you and your prospect. They’re an alternative to a full blown proposal and typically work best for smaller deals or more intimate relationships. Business proposal letters aren’t meant to stand alone as one-pagers can. Instead, proposal letters work to introduce the purpose and goal of an official business proposal that you then present to your prospects.

Bottom Line: Business Proposal Letter

Your business proposal letter is an effective  lead nurturing  tool and is your business proposal’s first impression. It sets the tone for what’s to come and gets the prospect excited about reading your plan to help them achieve their goals. To do this effectively, it must focus on the prospect. Accolades and rewards aside, your business must take the backseat here. Use this single page to show the prospect you know exactly how to help and get them to read your full business proposal .

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Cover Image for How to Write a Proposal Letter [Samples Included]

How to Write a Proposal Letter [Samples Included]

Madiha Rizvi

Writing a convincing and converting proposal letter is not a piece of cake and requires paying attention to detail. What appears like a simple task takes up more thought-provoking ideas than you can imagine if you don’t have any proposal letter sample! 

Apart from writing a tailored introduction about yourself, you have to opt for a similar approach to define your company, the goals and objectives for the project, and how it could benefit your potential client. Here’s an example to let you think deeply… imagine you have a brilliant idea to save your boss thousands of dollars in revenue – what do you do? 

Do you simply approach them and present your idea? Or do you prepare a proposal letter mentioning all about the idea, how it will be achieved, and how much will it cost your boss?  

If you’ve been in business for too long, you would know the right answer by now. So, if you’re in the same process and currently searching for proposal letter examples to start your draft, here’s a step-by-step guide. Keep reading to become a pro at writing proposal letters and converting clients like never before. 

What is a Proposal Letter? 

Unlike other documents, a proposal letter is a professional letter focused on highlighting and communicating ideas to the client. The document is more than a discussion of your company – it involves end-to-end details about the solution, the steps required to achieve the results, and how much finance will go into the project. 

Considering the nature of the letter, it can be written for various purposes, such as a proposal letter for a partnership, an interior design project, a professional service, a sales project, and so on. 

Results-Proven Tips to Write a Proposal Letter that Converts!

A proposal letter follows specific criteria to ensure everything is included in the letter. Leaving anything behind can weaken your case in front of the potential client. Here are some tried and tested steps that ensure to give results. 

  • Talk About Yourself and Your Company

After formal greetings, the first step is to introduce yourself and your company to the client. Regardless of it being direct and simple, you can use creativity to keep the reader interested. Instead of using basic terms, use adjectives to hook your client.  

For instance:

Instead of writing, ‘We’re a construction company,’ you can write, ‘We’re the 3 rd biggest construction company with $14.4 billion in revenue in 2022.’ Obviously, use it only if it’s true! 

It’s a simple sentence but subtly highlights your achievements in the opening statement. Once you have briefly introduced your company and yourself, mention why you’re writing the proposal letter so the client knows what they are diving into. 

  • Write About Your Goals & Objectives for the Project 

The second step of writing a successful proposal letter is to mention the list of objectives for the project. Once you’re clear about the objectives, make a separate heading to discuss your long-term and short-term goals. 

Under the short-term goals, talk about the small steps you need to take to achieve results. Don’t forget to mention the timeline with each goal to clearly tell the client how long it will take for you to complete the task. Follow the same process for the long-term goals to send a clear message to the potential client. 

For example, instead of writing ‘we’ll use the loan to increase production,’ write ‘we will use the loan to increase the production capacity by 70% by installing new machines and adding more employees to the team.’

In short – be concise and specific with what you want to achieve for the client. It’s one of the basic errors that many people make in their proposal letters. 

  • What Sets Your Company Apart? 

This paragraph of the proposal is all about convincing the client of your previous achievements, successes, and examples of doing something similar for other clients. Talk about your special skills and values that set you apart from all other companies. 

If you have worked for a similar industry as your client, then mention it as a direct experience in the field. In short, the better you highlight your skills and achievements, the more you will be able to convince your client. 

  • Evaluating Results Over Time 

how to write a company proposal letter

Don’t just make big promises in your proposal; inform the client how you will achieve these results over time. And that is only possible with constant scrutiny and evaluation of the progress through robust measures. 

Here are some ideas to evaluate progress with time. 

  • What machines will you install to increase the company’s productivity?
  • Which employees are you planning to recruit? 
  • How will you measure the results of new results? Will you use reports or will you conduct meetings every week to discuss the future? 
  • Which metrics will you use to measure the success of the new methods? 
  • How will you inform employees of the new changes? 

You have to paint a picture in your client’s mind. Answer their queries before the question appears in their mind, so there’s no hurdle for you to win the project. 

  • Briefly Discuss the Budget 

Now that you have mentioned what will go into the project, it’s time to discuss the financials to achieve the results. Instead of giving one big number, give a full breakdown of how much will go into each project step. 

Here’s an example to give you an idea. 

Use this example to break down the cost of your project appropriately. Remember that no cost is too little or too big to add to the table. You can only quote an approximate figure if you’ve thoroughly researched the market. Asking to tame the budget in the future can shatter your client’s trust in you, so it’s best to take your time while drafting the budget.  

  • Write a Strong Closing Paragraph! 

The last part of the letter is a closing paragraph, which can be called a CTA (Call-to-Action) – the last effort to lure your client. Try to make it sound strong and compelling so your customer thinks twice before giving up on your offer. 

  • Provide Your Contact Information 

Once you have given all details, it’s time to conclude your proposal with your company’s contact information. Be approachable on the number and email to not miss out on anything from your client. It’s a necessary part of your letter, so don’t skip it.  

General Template of a Proposal Letter 

Here’s a quick look at how a template is written and what goes in which paragraph. 

[Your Name]

[Company’s Name]

[Your Address]

[Recipient’s Name]

[Recipient’s Company]

[Recipient’s Mailing Address]

[Give a brief introduction of your company and yourself along with the goal of the proposal in the first paragraph – refer to tip #1 of writing a proposal letter]

[Discuss the goals and objectives for the project in the second paragraph, along with mentioning how you will achieve results – refer to tip #2 of writing a proposal letter]

[Highlight your achievements, skills, and expertise to convince the client to give you the project – refer to tip #3 of writing a proposal letter]

[Talk about how you will measure the success of the project over time – refer to tip #4 of writing a proposal letter]

[Write a breakdown of the financials required to complete the project within a given time period – refer to tip #5 of writing a proposal letter]

[Start with thanking the client and add closing remarks to conclude the proposal. In the end, give your contact details – refer to tips #6 and 7 of writing a proposal letter]


Samples of Proposal Letters to Help You Bring Clients 

If you’re still confused about writing a proposal letter, then here’s a traditional format you need to follow to write a proposal letter. It does not include the specific mention of the company and client’s name, but make sure to include it in yours in the sections specified above.

Dear Sir/Madam, 

Our Pest Control Services Inc. team loved the opportunity to offer you our termite-proofing services. We sat with our experts last week to discuss the future of the project, and here’s a detailed overview of our action plan to ensure the safety and hygiene of your office(s). 

On 19 th July, we discussed the concerns of termites spreading all over your office, which is now a great problem for employees. We further discussed how it has compromised the hygiene of the space and is harmful to employees. To cater to this, we have come up with a list of chemicals that we will use to fumigate the space and identify the root cause of the issue to eliminate the problem completely. 

Our objective is to fumigate the space and then insert the chemical by drilling 4-inch long holes at the root of walls to achieve 100% results. We will use XYZ chemicals that are not only environmentally friendly but give 99.99% results each time. We will vacate the office of all items to let chemicals spread everywhere and protect employees from any health risks. For the best results, the office will stay closed for at least 2 days to kill termites from every corner. 

We have used the same technique for one of the biggest sugar mills, where we used the specified chemical and applied the drilling technique to kill the termite. We have used the same method for almost all our termite-proofing clients and have achieved 99.99% results each time. In all cases, the problem did not occur again for at least 10 years. 

We estimate a budget of $8,000 for a project of this caliber. We expect the initial deposit of $3,000 to buy chemicals and machinery to start the project. The rest of the payment is expected after the project. 

If you would like to move forward with our proposal, feel free to reach out to us through email or phone number. We’re more than happy to assist you in clearing your space of all unhygienic elements to make your office a safe and secure space for your employees. 

Kindly review our proposal and direct all your recommendations and specific needs to us at [email] or [phone number]. 


Dear Sir/Madam,

I, [XYZ], the Chief Marketing Officer at the [ABC Company], am writing this proposal for future collaborations to help you improve the sales of your new product line. 

We’re an advertising agency with over 15 years of experience under our belt. We’ve worked with some of the top companies in several industries, including retail, oil & gas, logistics, and others, to help clients succeed through robust marketing and advertising techniques in less than a year. 

Our goals to help your new product line reach your target audience are: 

  • Spend 50% of the budget on social media marketing to reach more customers and spread awareness of new products 
  • Set up small kiosks in malls for live testing to address customers’ concerns and build trust with the audience 
  • Use 20% of the budget to put billboards on busy roads to scale up the product’s hype among people 

We have used similar marketing techniques for  [ABC Company] and [XYZ Company], which resulted in 30% more customer awareness and a 60% whooping increase in sales in the first quarter. 

We plan on measuring the success of our actions by calculating the online traffic and keeping track of social media metrics for the future. 

If you agree to our proposed plan, then feel free to direct any inquiries to us through email or chat. We’re more than happy to take your business to the next level. Please reach us at this [email] and [number] for future correspondence. 

Respected Sir/Madam, 

With immense pleasure, I would like to inform you about the new idea I have been working on for a long time. After thorough research, budgeting, and planning, I am ready to present it to you.

There’s a detailed fact sheet highlighting all factors related to achieving the goals in the long term.

For the whole project, I would need an investment of about $200,000 to get started with the whole idea and achieve the results within the set timeframe. 

Please let us know your concerns or questions regarding the proposal through chat or email. 

Additional Examples of Proposal Letters for Inspiration

If you’re still confused about writing proposal letters, then here are some additional examples for inspiration.

Have You Considered Using Software to Write Engaging and Compelling Proposal Letters? 

In case you’re too busy to write the proposal letter yourself, we have just the right solution for you. The above-mentioned example proposal letter is written by AI software that can address all your writing needs. is the best software for writing proposal letters quickly and is perfect for drafting web copies, social media content, and much more. If you’re intrigued to find out more, try it out yourself . Get the projects of your dream by writing captivating proposal letters through!

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How to Write an Effective Proposal Letter

effective proposal letter

  • December 31, 2022

Writing a proposal letter might seem simple. It would help if you introduced yourself, write a few details about the project, and provide a price for your services.

If you’re taking a similar approach, you’re likely losing sales and customers. Most salespeople and teams make a handful of mistakes when it comes to writing proposals. And the simple reality is that we can rectify them easily and quickly.

This article shows you how to write a persuasive proposal letter. We’ll give you a great structure, cover some proven tips for increasing chances of success, and show you an example of a proposal letter that you can write and use right away.

What is a Proposal Letter?

How to write an effective proposal letter.

  • 1. Give an Introduction and Some Background Information
  • 2. Include a Statement of the Issue in your Proposal Letter
  • 3. Write about Goals and Objectives you Have
  • 4. Offer Ways for Evaluation of the Progress
  • 5. Describe Needed Budget for the Project
  • 6. Include your Contact Information

A Proposal Letter Example

effective proposal letter

A proposal letter is a document, which doesn’t need in-depth submission, with a table of contents and extensive project details. It’s brief, precise, and gives essential information on a business proposal.

A proposal letter is a precursor to a more detailed business proposal, meaning it’s usually a shorter, abbreviated form of complete proposals. But it also can be the actual request itself. It follows a similar structure to the detailed ones but more concise.

A well-written proposal must avoid empty words, be concise, convey what you want the reader to understand, and avoid using long sentences that bore the potential customers.

Writing a good business proposal is as important as getting the contract itself. The keyword is simple; keep it straightforward. A good proposal letter must show a thorough understanding of the work’s goal and intent to provide an acceptable solution to it.

Note that sometimes, we use the terms “proposal” and “proposal letter” interchangeably. In such cases, a “proposal letter” is a full proposal, and you should create your document accordingly.

If you respond to a proposal request, try to follow specific guidelines given by the recipient. However, in the following, we provide six general tips to write a persuasive proposal letter structure for different situations:

  • Give an Introduction and Some Background Information

First, set the context for the letter by providing some information in the first paragraph. If you have already talked with the letter’s recipient, mention this in the opening sentences.

You may have discussed the client’s problem and agreed to a rough set of aims. Allude to this conversation and briefly reiterate why you are well-suited to provide a proven solution.

how to write a company proposal letter

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  • Include a Statement of the Issue in your Proposal Letter

You can include this part in the above section, or you may want to dedicate a few separated paragraphs to it. It depends on the extent of the issue.

This statement is about the current problem that requires action to improve the situation. It should concisely explain the barrier the everyday problem places between an operational process and the problematic state of affairs.

This statement is entirely objective, concentrating on the problem’s facts and leaving out any subjective opinions about it.

  • Write about Goals and Objectives you Have

It would be best to be as specific as possible when describing objectives. We should outline the objectives in list form, preferably with figures attached.

It is better to say, “We will increase productivity by 25% over four months,” rather than, “We will significantly boost your productivity.” You may also want to provide information about the methods you will use to achieve these milestones.

  • Offer Ways for Evaluation of the Progress

How will customers be aware of progress? Will they have online access to an analytics dashboard? Who will the point of contact be? Which touchtones will you use to measure progression?

Answer these questions in your proposal letter section and draw a clear picture of how you will make sure that your recipients know the project is moving forward and has acceptable progress.

  • Describe Needed Budget for the Project

After stating the problem, you should explain the needed budget and not forget to mention the costs of not fixing it. It’s always a good idea to frame the problem and proposed a solution in terms of financial costs.

It’s not suitable to give a full breakdown of costs in your cover letter, but you should give an idea of the budget. The project’s price is a significant factor in the decision-making process, so it’s essential to include it. Pinpoint the exact costs in dollar amounts.

  • Include your Contact Information

Providing a set of contact details at the end of the letter, including a phone number, website address, and email address, can be incredibly helpful if clients want to call or email you directly.

how to write a company proposal letter

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Now that we covered all the crucial parts of an effective proposal letter for you, let’s take a look at a template, which you can change to your requirements and use as a proposal letter for your company:

The proposal template below shows you what a generic proposal business letter might look like. Depending on your prospect’s understanding, you may wish to make it longer or shorter or add greater detail to specific sections.

The letter should follow a traditional form and include both you and your recipient’s names and addresses on the header.

Dear Sir/Madam,

It was my pleasure talking to you on Monday about the issues you are facing regarding staff recruitment and training. You explained your desire to improve recruitment practices and establish tested results-oriented staff onboarding practices.

Our company has more than twelve years of experience, providing services to enterprises like yours. Our team has specific expertise in your particular field, having worked with Company X and Company Y.

In this letter, I’d like to describe how our company will provide a comprehensive solution for your issue, and the objectives we would achieve and our milestones.

Our overall goal will be to decrease the total amount of resources, staff time, and overall expenditure spent on recruitment by 25% while maintaining current results. We will increase new staff productivity over the first four months of employment by 30% by improving staff training processes.

There are several intermediary objectives we would meet to achieve this:

  • A review of current hiring method and training practices;
  • Making testing infrastructure and formulation of practical KPIs;
  • A testing and implementation time to identify possible changes;
  • Long-term analysis leading to optimization of new procedures over several months.

Promise evaluation and reporting

You will receive a monthly reporting, which will include all of the critical KPIs. Your primary point-of-contact will be the team leader. Every quarter, we invite you to attend a presentation explaining testing outcomes, positive changes, and general progress towards the project’s objectives.

As previously discussed, the project’s approximate cost is $30,000, paid in quarterly installments over 24 months. This payment plan is flexible and open to discussion for any changes.

If you like to go ahead with this project or have more questions, please don’t hesitate to contact us. I have included my contact details below. If you are happy to go straight away, sign below.

Sincerely Yours,

effective proposal letter

A proposal letter is a formal document that proposes cooperation and outlines how your company can serve a potential client.

A good proposal letter does not guarantee that you will get the project, just like a good fishing rod does not ensure you will get a good catch! But it is usually wise to make an effort to write a good one.

In this article, we offered an effective and perfect proposal letter for you, as well as some tips. Use this template and suggestions for your version of a pitch-perfect proposal letter in your words.

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How to Write a Proposal Letter for Any Use Case [+ Templates]

Whether you’re writing a business proposal, project quote, or sales pitch, you’re going to need a top-notch proposal letter.

This letter provides context to the recipient, sets the tone and style for the proposal, and encourages the recipient to review your complete proposal.

But…writing is hard work!

To make things easier, we’ve got a simple 5-step process to help you craft your letter.

Below, you’ll also find 3 unique templates with an example proposal letter for each.

Writing a proposal letter graphic

What is a proposal letter?

A proposal letter is designed to entice the recipient to read your proposal in its entirety. It can be formal or informal, and usually covers the problem statement, goals, proposed solution, and next steps. It might also include details about the project budget or timeline.

Cover letters are sent alongside all types of proposals, including:

Sales proposals

Business plans

Business partnership agreements

RFP responses

Project or service renewal proposals

Internal collaboration and project proposals

Grant proposals

Research proposals

Sponsorship proposals

Why you need a proposal letter

Here are important reasons why you shouldn’t skip the letter:

Set the tone - Your proposal letter will set the stage for the proposal. It can hint at the results the prospective client will receive or it could cover the RFP requirements that were met.

Provide context - A proposal letter provides context for why the proposal is being sent. This is useful whether the proposal was solicited or unsolicited because you give the reader a reason for being in their inbox.

Highlight key areas of the proposal - You can use the letter to surface any detail you want, be it a testimonial, average client result, low-price promotion, market opportunity, or whatever will excite your reader the most.

Encourage the recipient to read the proposal in full - At the end of the day, a great proposal letter should serve as a gateway. It gives enough information to convince the reader to give you their undivided attention and review the entire proposal.

5 steps for writing a proposal letter

Use these 5 simple steps to craft the perfect proposal cover letter.

For best results, you should write your proposal before you write the letter. This way, you’ll have already done your research on the potential project, client, or business idea.

1. Know your goals

Before you start writing, take a step back and really consider what you’re trying to achieve. Are you trying to get the attention of a prospective customer who you know will be a hard sell? Do you need to show the reader that you’ve adhered to strict guidelines that were outlined in a governmental RFP? Or, are you simply giving the person a heads-up that the proposal is ready for review?

Knowing your goals will ensure you make the right decisions in Steps 2, 3, and 4 below.

2. Determine the format and formality level

Next, it’s important to choose the right format and style for your letter.

In this digital world, written or printed proposal letters are very old-fashioned. You’re better off using proposal software , which allows you to store email templates, proposal templates, customize things as needed, automatically notify and remind recipients to sign your proposal, track views, and more.

As for style, make sure to write in your brand voice . The formality of your writing style should also match your industry and the recipient’s expectations.

In most business scenarios, the longer and more complex and more formal your proposal, the longer and more complex and more formal your proposal letter will be too.

3. Start with a template or example

The next step is to find a template or letter example that will help guide your writing process. This is especially helpful if you’re sending a proposal letter for the first time and aren’t sure of exactly what to include.

Below these steps, you’ll find 3 proposal letter templates for different use cases and an example letter for each.

Of course, you can also head over to Google images and search for the exact type of proposal letter you’re writing in order to find tons of examples.

4. Craft the letter

Now it’s time to write!

Most proposal letters should hit on all of these points (in order):

Greeting for the recipient

Statement of gratitude or excitement for sharing the proposal

The client or project problem and goals

Your proposed solution and key details

Why your company is a fit to help

Your signature

As you’re writing, do your best to match the style and tone you’ve chosen, but you can always tweak it to perfection as you edit.

5. Proofread before you send

The proposal letter is your first impression. Get it right, and there’s a good chance the recipient will read your proposal. Get it wrong, and they might never even open your proposal. This is why you shouldn’t rush. Proofread your proposal letter 2 - 3 times, and on different days if your deadline allows.

Now it’s onto the templates and proposal letter examples!

Proposal letter template #1 (Sales pitch)

While there are many different types of proposals, sales pitches are probably the most common type. Account managers or executives send proposals to prospective clients and customers in order to pitch services, software, and other solutions. Use this template to help you craft the perfect letter to go along with your proposal.

Template #1

[Your first and last name]

[Company or organization name]

[Recipient's name]

[Recipient's company]

[Hi or Dear (recipient’s first name),]

[Use the first sentence to share your gratitude and or excitement for the opportunity to submit a proposal.]

[Define the potential client’s core problem and goals in one to three sentences.]

[Describe your proposed solution and why you’ve chosen this approach in one to three sentences.]

[Use one sentence to clarify the price of the proposed solution, or if you prefer to keep the price out of the letter, list specific deliverables or timelines instead.]

[In one to two sentences, describe why your company is the best fit for implementing the solution or how you’ve completed similar projects.]

[Tell the prospective client the next steps to take, such as reading and signing the proposal.]

[Your sign-off and signature]

Jane Doe Ace Software Hi Alex, Thank you for the opportunity to share this proposal with you. Your small but mighty marketing team is struggling to release content quickly, given their limited capacity. Things are getting stuck in the review column for too long, and classic project management software means that your team is constantly searching for assets, copying and pasting content, and failing to meet campaign deadlines. Ace Software can help you achieve your goal of hitting your campaign targets and drastically improving your team’s productivity. I recommend our Premium subscription and our Platinum implementation add-on. With a one-time setup fee of $5,000 and an annual fee of $4,000, your team will be able to produce and release content more quickly—as if you had hired two marketing assistants. Ace Software has supercharged 320 content teams, delivering an average ROI of 600%. Please read through the proposal and sign off when you’re ready. Or, let me know if you have any questions on what’s included. We look forward to working with you! Jane Doe Account Executive Ace Software

Proposal letter template #2 (Project quote)

When submitting a proposal or quote for a large project , you’ll likely need to take a more formal approach with your proposal letter. This template and example are perfect if you’re responding to an RFP for a government agency or other organization.

Template #2

[Hi or Dear (recipient’s first and last name,)]

[In the first paragraph, clarify why you are submitting a proposal and to whom. Typically you will mention the entity that sent out an RFP and the title, topic, or number of the RFP.]

[Describe the core contents and requirements of the RFP in three to five sentences.]

[Describe the scope of services outlined in your proposal in three to five sentences.]

[Offer the proposed project price and timeline in one to two sentences.]

[Clarify who the recipient should contact for questions or requests for proposal revisions.]

Jane Doe Ace Construction July 13, 2023 Alex Ross, Senior Civil Engineer Anywhere, California Dear Mr. Alex Ross, Thank you for the opportunity to submit this proposal. Ace Construction is responding to the RFP for playground and park construction for Sunny Park requested by the City of Anywhere, California. The Sunny Park RFP requests submissions from contractors experienced in park construction, playground design and construction, hardscaping, and landscaping. The RFP requires an active CSLB license and compliance with the allotted budget. Our proposal is fully compliant with all aspects of the Sunny Park RFP. We are proposing the construction of three shaded picnic areas, two playgrounds for children of different ages (12 months to 4 years and 5 to 12 years), a playing field for a variety of informal family sports, hardscaping with locally-sourced materials, and landscaping featuring drought-tolerant plants. The estimated project price for all of the design and construction outlined in our proposal is $900,000, and we expect to deliver the completed project in three phases so that new park features are available for public use as soon as possible. Should you have any questions about the contents of this proposal, please contact me directly. Thank you for your consideration, Jane Doe Business Operations Manager, Ace Construction (555) 555-1234

Proposal letter template #3 (Business partnership)

When you’re writing a letter to present a proposal for a business partnership , the level of formality will depend a lot on the person or entity you’re pitching to, and how well you know them. Whether formal or informal, the following template will help you cover your bases.

Keep in mind that this template can be easily modified to fit internal project proposals and business plans.

Template #3

[Your first and last full name]

[Kickstart your proposal letter with a one-sentence description of why you’re excited about the potential of working with the other person or why you think they’ll be interested in the opportunity.]

[Describe the market opportunity, target audience, and competitive gap analysis in two to four sentences.]

[Describe how your company will compete to win in two to four sentences.]

[Describe the type of partnership you’re proposing in one sentence (general partnership, limited partnership, etc.)]

[Clarify the next steps you’d like the recipient to take, such as reading and signing the proposal or scheduling a call with you to go over any questions.]

Jane Doe Ace Startup Hi Alex, I’m so excited to send you this business partnership proposal, because I know this industry is right up your alley. With your experience and my audience, I believe we’ll be able to do great things together. The direct-to-consumer vegan frozen foods market is full of expensive products that cost $8 to $11 per serving and are consistently described as “not filling” in reviews. It’s no wonder: 400 calories isn’t enough for dinner. Based on my research, I believe that we can satisfy the needs (and stomachs) of busy vegans by providing quick-cook products with recipe options that can be easily combined with fresh ingredients on hand. This will reduce our packaging sizes, costs, and shipping costs, while making it easy for consumers to adjust the recipes to their own tastes and typical portion sizes. I propose a general partnership, where we invest equal amounts of time and money, and share the potential gains or losses equally as well. Please review this proposal in full, and let’s schedule a time next week to go over all of the details. Best, Jane Doe

Write with your unique brand voice and the appropriate formality. Encourage the recipient to read the proposal and clarify the next steps you want them to take. Get these things right, and you’ll close that proposal in no time.

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How to Write a Proposal Letter: Get Noticed and Close Sales

how to write a company proposal letter

That’s a common observation heard from grandmothers worldwide. And while it’s undeniable that letters have given way to voice mails, emails, and text messages, one remains crucial for those of us who run our own businesses:

Proposal letters.

Most of us spend the vast majority of our time writing the proposals themselves. But in some situations we need to do a bit more. A brief cover letter introducing the proposal is expected by some potential clients, and appreciated by many.

Unfortunately, it’s tempting to just throw this cover letter together in a hurry. We spend painstaking hours getting the proposal just right… but end up neglecting a great opportunity to forge an immediate connection with a potential client.

Let’s get into what proposal letters are, when you should use them, and how to make them as simple and effective as possible!

What Are They?

The term “proposal letter” actually has multiple meanings. It can be a bit confusing to get your head around the concept without knowing which interpretation people are referring to.

Here are the two most common versions:

  • A brief cover letter that serves as a formal introduction to a potential client . This letter shows the reader you understand their needs, highlights a few key differentiators why you’re the best choice to meet them, and hopefully intrigues the reader enough to read your full proposal.
  • A letter that acts as the proposal itself. You’ll see these most often with small projects and more informal clients.

I’m focusing on the first interpretation today. These letters are meant to accompany a standard proposal – like the ones we give away in our proposal template library  and can quickly be created with  proposal software, Bidsketch .

A proposal letter isn’t just a summary of your full proposal. It’s a persuasive introductory document meant to intrigue a reader enough to find out more.

How About Some Examples?

The easiest way to understand how writing a proposal letter works is to see a few of them in action.

Here’s a proposal letter example from consultant and proposal expert Tom Sant’s book  Persuasive Business Proposals :

Dear Mr. Taylor: The enclosed proposal responds to your request for audits of the following facilities: • the Patriot Center for Rehabilitative Medicine in San Luis Obispo, California • the Phoenix City Hospital in Phoenix, Arizona • the Moreno Valley Wellness Center in Sunnymead, California • the Playa Vista Health Care Center in Los Angeles, California Our proposal addresses your need for thorough audits of all four operations, but we have also gone a step further, taking into account your broader objectives. We have developed an overall plan to help you gather the necessary data to turn the properties around financially and protect the value of your investment. We have also outlined our services in the event that one or more of these properties cannot be made profitable and must be sold or liquidated. We recommend handling the audits by means of a partnership between ourselves, through our headquarters in Los Angeles, California, where we have extensive experience in real estate audits, and James J. Harrison, CPA, & Company, a firm with offices in Phoenix, Arizona, with recognized expertise in supporting the health care industry. This partnership is uniquely qualified to handle the audit and provide additional services as may be required. We bring some distinct advantages to the process of handling your audit: As medium-size firms, we have the flexibility and responsiveness to meet all deadlines, especially those imposed by third parties and regulators. We offer you the level of service and commitment that the national firms save for their largest clients. At the same time, we have the resources, specialized knowledge, and experience to handle complex audits of long-term care facilities quickly. Senior partners of both firms will be personally involved in conducting your audits. We provide the highest-quality services at a cost-effective price. We seek to handle all four audits because it is important to develop a total picture of the financial situation for all four facilities. In addition, by handling all four audits, we can save you money. For these reasons, our firms would decline to participate in a split or partial award. We are eager to work with you on this project. May we schedule a time to present our proposal to the entire management team? Sincerely, Donald Miller, CPA

Here’s another from Alan Weiss’s excellent book  Million Dollar Consulting Proposals :

Wile E. Coyote Vice President, Predation Acme Co., Inc. 85 Canyon Dr. Notsocarefree, AZ 88901 Dear Wile, As promised, I’ve enclosed two copies of the proposal reflecting our agreements reached yesterday in your office. I’ve forwarded an electronic version as well this morning. Please choose the option you prefer, the payment terms you prefer, and return one of the copies I’ve already signed via the FedEx envelope enclosed. I’ve also enclosed an invoice in different varieties in case this helps in the process. I’m prepared to begin within a week of your acceptance, as discussed. Please note that this proposal is copyrighted and contains my intellectual property. It may not be shared with anyone outside of your organization for any reason without my express approval. I’ll call you Friday at 10 a.m. as agreed, if I don’t hear from you prior, to see which choices you’ve made. If you’d like to begin immediately with a telephone “handshake,” I’m happy to accommodate you. Thanks for the opportunity to work with you on this important project. Sincerely, Alan Weiss, PhD

Finally, here’s one more proposal letter from Kurzweil Education Systems . Although the context is different (requesting a grant) the objectives are identical:

Dear Ms. Atwater, Orchard Middle School is pleased to present this proposal for your review. We look forward to partnering with you to provide a reading intervention program for our students with poor reading skills called Read to Succeed! Orchard Middle School has over 50 at risk students with a reading performance of at least two years behind their current grade level. The objective of the Read to Succeed! program is to help all students with poor reading skills learn to read at grade level and increase their reading speed, comprehension, and reading attention span. During the last year, we have been piloting the Read to Succeed! program with a small group of students with poor reading skills and have seen dramatic improvements with most of the students increasing their reading ability by one to two grade levels. The Read to Succeed! program provides students with access to assistive reading systems, along with training for classroom teachers and reading specialists. We have seen measurable success and we are now seeking to expand our Read to Succeed! program to address the needs of all the at risk students in the Orchard Middle School. Our proposal requests $16,504 in funding to obtain the software, hardware, and training necessary to equip the Orchard Middle School resource room with five assistive reading systems, each including a computer, scanner and assistive reading software. We appreciate ABC Foundation taking an interest in helping our students develop their reading skills through our new reading program! Please give me a call at 703-555-1212 x342 if you require any further information or have any questions concerning this proposal. Thank you, Jennifer Hazelton Special Education Coordinator

When Do You Use Proposal Letters?


Image credit: jackmac34

You don’t need proposal letters for every project you try to land. A lot depends on the scope of the project and the nature of the client .

A large corporate client with an extensive project is much more likely to expect a proposal letter than a smaller project from a new startup.

Larger corporate clients are accustomed to seeing cover letters on their intra-office communications and memos, as there’s more red tape and a well-defined corporate hierarchy. The whole process is a bit more formal.

You don’t need proposal letters for smaller jobs, though you could include one if you want to. As you’ll see in just a second, they don’t take too long and, when done right, can be persuasive sales documents . They can also add a nice personal touch.

Some businesses skip a cover letter and opt for a personalized thank-you letter at the end of their proposals instead. This is pretty uncommon, but a good way to show the client you appreciate the opportunity with a nice personal touch.

Executive Summary vs. Proposals vs. Proposal Letters

how to write a company proposal letter

Image credit: shauking

If you’re familiar with submitting proposals for larger projects and clients, you might be wondering what distinguishes a proposal letter from an executive summary. How does everything fit together?

The biggest difference between here lies in the purpose . With full proposals, the goal is simple: convey the key information needed to convince a client to choose you for the gig.

An executive summary is essentially a condensed, less detailed version of that proposal. The idea is to be able to have a busy upper manager quickly scan it and get the reassurance they need to pass it along to their subordinates, who will review the proposal in detail.

We’ll actually have an entire post about executive summaries out shortly, so stay tuned!

A proposal letter, on the other hand, is meant to introduce yourself, quickly show the client you understand their needs, and briefly mention a few things that make you the ideal choice. The aim is to make a good impression. There’s no need to hard sell or get into the gritty details. All you have to do is intrigue the reader enough to turn to the full proposal.

These documents also have different lengths . While truly massive projects (with defense contractors, Fortune 500 companies, etc.) might have proposals that run hundreds of pages, our research of over 25,000 proposals found that around five is ideal.

That’s a good baseline for small to mid-range projects. An executive summary, which you only really need on large projects, is a fraction of the full proposal. A few pages is ideal. The proposal letter should be even shorter – no longer than one page for best results.

Structurally, these documents are actually extremely similar . The difference lies in the level of detail. As you’ll see below, the proposal letter tracks along nicely with the full proposal (identify the client’s need, recommend the solution, introduce benefits, and give them a simple way to act).

This structure makes all of your documents persuasive. Follow it, and you can appeal to people no matter how much (or little) of your proposal package they read.

How to Write a Proposal Letter in 5 Simple Steps


Image credit: asi24

Just as every client is unique, so is every proposal letter.

With that said, you can save yourself a mountain of trouble by embracing a persuasive structure that works well for every situation. Once you grasp the key elements and how to order them, it’s a matter of filling in the blanks to adapt each letter to the client.

Tom Sant breaks how to write an effective proposal letter in five simple steps :

Step 1. Identify the Client’s Key Business Need(s)

A strong proposal letter starts on a topic the potential client is already thinking about: their business needs. What is the challenge that’s keeping them up at night? What are they worried about? Why are they requesting proposals in the first place?

If you lead with that information, it feels like you’re joining in on the conversation they’re already having in their head. There isn’t a better way to make a potential client feel understood.

This is more than just regurgitating project specs from the RFP. Someone might want a new website design , for instance, but that’s only the surface-level requirement.

Not having a shiny new website isn’t causing anyone to lose sleep. But a gradual reduction in their customer base or loss of market share – the deeper business implications – certainly could.

You might have to do a little digging to spot the business pain point beneath the surface-level project. But if you do that and share it with the client, you’ll instantly distinguish yourself from the competitors who just reiterate project specs without deeper thought.

A good needs statement paragraph might look something like this:

The enclosed proposal responds to your request to re-design your website. We understand you would like to consolidate multiple websites after your merger with Acme company. The challenge lies in uniting two distinct customer bases, while getting them accustomed to the new brand and reassuring them the quality of their service won’t decrease.

Step 2. Recommend a Solution to Meet Those Needs

Once you identify the client’s pain points, it’s time to outline your recommended solution.

Use this paragraph to give the reader a broad overview of the favorable outcome(s) they’re looking for. Again, these outcomes cut beneath the surface-level requirements as expressed in the RFP.

No one will pay serious cash just for a cool new website; they pay because they want what that new website can offer their business (more customers, sales, brand recognition , etc.)

Leave the gritty details for your full proposal, but use this paragraph to identify the solution and connect it to tangible business benefits.

A good solution paragraph might look like this:

We recommend a revitalized digital presence that leverages the strengths of both websites under a single banner. Our proposal includes a plan to launch the new brand within nine months. This plan includes a mobile-responsive website, an updated e-commerce store, and a community forum where customers can receive technical support.

Step 3. Explain Your Basic Approach

After you’ve described what your solution looks like, take a minute to explain how you’ll put it into place. Remember, proposal letters are most useful for large, complicated projects. There are a lot of moving pieces; it’s a good idea to give clients an idea of how things will proceed.

Your recommended solution probably consists of a suite of services that, when performed all together, achieve the solution. Use this paragraph to highlight the major services involved and describe what will happen when.

A good example might look like this:

Our process begins with a kick-off meeting between our strategists and key digital marketing stakeholders from your team. After settling on a vision for the re-design, we will design several wireframe versions for you to choose from. We will incorporate your feedback from weekly phone meetings as we finalize the winning design.

Step 4. Mention A Few of Your Most Important Differentiators

Why should the client hire you instead of anyone else?

Understanding their needs and recommending the right solution gets you pretty far, but it’s the unique value you bring to the project that really seals the deal.

Your full proposal will lay this out in detail. Use the proposal letter to highlight just a few of the most important factors that make you the perfect choice for the job.

Because this tends to be a longer paragraph, you can break up each factor with bullet points to make things easier to read.

Continuing on with the web design example, a good example might look like this:

We bring some distinct advantages to the process of handling your re-design: Our process is unique in that our marketing specialists work closely with our designers throughout. This ensures the new website is beautiful, functional, and a powerful tool to generate business. Our consultants have extensive experience in the communications industry and re-designed the Beta company website after their merger with Delta company. We our also located in Los Angeles, which allows our senior consultants to work closely with your team and provide ongoing support after launch.

Step 5. Finish with a Call to Action

Imagine this situation. A busy, overwhelmed executive who works for your dream client reads your proposal letter and loves it. He or she makes a mental note to follow up later, but an urgent call comes in and your proposal is set aside.

“Later” never comes; an interested prospect forgets about you because you get lost in the shuffle!

Including a short call to action helps avoid these situations. Give your reader a straightforward action to take if they’d like to proceed. Better yet: give them that option and a heads up about how and when you will follow up too.

Here’s an example of a good call to action:

After you have reviewed the enclosed proposal, sign the contract electronically if you’d like to proceed as is. I will call you on Friday to discuss any questions you might have.

See how that works? Even if the interested prospect forgets to follow up , taking matters into your own hands gives you another chance to land the gig.

To recap the process from start to finish:

  • Introduce yourself by identifying key client needs
  • Recommend a solution to address them
  • Explain your basic process
  • Mention a few key differentiators
  • Conclude with next steps/call to action
  • (Edit and proofread)

A Few Tips to Make Your Proposal Letters Even More Effective

how to write a company proposal letter

Image credit: StockSnap

If you follow the framework above, you can get noticed and intrigue a reader enough to find out more. All within a span of just a single page.

A big caveat: if the client wants something different, their guidelines trump all. If they specify which information to include or omit within a proposal letter, follow their guidelines diligently. How can you expect to convince them you understand their needs if you can’t even follow basic instructions?

One thing you might have noticed that’s missing: cost . In almost every situation, putting a dollar amount in your proposal letter is a mistake. That just gives busy executives – people who haven’t had time to read your proposal and fully understand the value you can deliver – an easy excuse to reject you.

If they spot a high figure on page one, your package might end up in the trash bin before you get a fair shot. The only exception would be if the client specifically asks for it. Or if a bargain price is your competitive advantage.

Don’t overlook formatting . The words you use and how they’re structured are key. But presentation is equally important. A letter submitted with a company header and stationary conveys professionalism. And make sure to formally address the recipient. This website has a great example of a business letter format.

Finally, remember your goal . Keep your proposal letter short and focused on the client. Resist the temptation to go on and on about yourself, qualifications, or experience. Forget about selling the client on hiring you after reading the letter alone. The pressure is much lower than that. Just get them to the next page.

Make an Unforgettable First Impression

Writing a proposal letter can sound like a drag. Especially after you slog through a proposal and think you had already finished.

But it doesn’t have to be. If you follow the simple framework above, you’ll make an unforgettable impression on larger clients with extensive (and lucrative) projects. Don’t miss this opportunity to stand out from the pack.

Do you use proposal letters? Have you noticed an impact they’ve had on landing clients? Leave a comment below and let me know!

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  • Created from research of 25,000 proposals worth $270M
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How to Write a Business Proposal [Examples + Template]

Meredith Hart

Published: August 09, 2023

Free Business Proposal Template

how to write a company proposal letter

Propose your business as the ideal solution using our Free Business Proposal Templates.

Thank you for downloading the offer.

It's finally happened. You've started a new business, and your customer base is starting to expand. But even though you're making progress, you still feel like you could be doing better.

how to write a business proposal: image shows a person holding a pen and another person typing on a laptop

There's a whole world of untapped potential around you — prospects you know would benefit from your product or service. And the issues you're running into are less about your solution's soundness and more about how you can reach your potential base.

→ Download Now: Free Business Proposal Template

That's where business proposals come in. They can bridge the gap between you and potential clients. A solid proposal can outline your value proposition and persuade a company or organization to do business with you.

Here, we'll take a look at the various kinds of business proposals and go over how to write one. We’ll also see some ideas and examples to help guide yours.

Know exactly what you need? Jump to one of the following sections:

What is a business proposal?

Types of business proposals, how to write a business proposal, business proposal templates, business proposal example, tips for writing a business proposal, business proposal ideas.

A business proposal is a formal document that’s created by a company and given to a prospect to secure a business agreement.

It's a common misconception that business proposals and business plans are the same. The proposal helps you sell your product or service rather than your business itself.

Instead of assisting your search for investors to fund your business, a proposal helps you seek new customers.

Follow Along With HubSpot's Business Proposal Template


Download the Template for Free

There are two types of business proposals: unsolicited and solicited.

  • Unsolicited Business Proposals : With unsolicited business proposals, you approach a potential customer with a proposal, even if they don't request one, to gain their business.
  • Solicited Business Proposals : Solicited business proposals are requested by prospective clients so that they can decide whether to do business with your company.

In a solicited business proposal, the other organization asks for a request for proposal (RFP). When a company needs a problem solved, they invite other businesses to submit a proposal that details how they'd solve it.

how to write a company proposal letter

Propose your business as the ideal solution using our Free Business Proposal Templates

  • Problem summary
  • Proposed solution
  • Pricing information
  • Project timeline

You're all set!

Click this link to access this resource at any time.

Fill out the form to get your template.

Whether the proposal is solicited or unsolicited, the steps to create your proposal are similar. Make sure it includes three main points:

  • A statement of the organization's problem
  • Begin with a title page.
  • Explain your why with an executive summary.
  • State the problem or need.
  • Propose a solution.
  • Share your qualifications.
  • Include pricing options.
  • Summarize with a conclusion.

Before writing your business proposal, it's crucial you understand the company. If they've sent you an RFP, make sure you read it carefully, so you know exactly what they want. It can also be helpful to have an initial call or meeting with the new client to ensure you fully understand the problem they're trying to solve and their objectives.

Once you've done your research, it's time to begin writing your business proposal. There's no one-size-fits-all approach to writing a business proposal, but let's take a look at some elements proposals often include. (I designed this example business proposal using Canva .)

1. Begin with a title page.

You have to convey some basic information here. Introduce yourself and your business. Be sure to include:

  • Your company's name
  • The date you submitted the proposal
  • The name of the client or individual you're submitting the proposal to

Your title page should reconcile engagement with professionalism. It's a tone-setter, so you need to make sure yours is sleek, aesthetically appealing, and not too "out there."

Here's an example of what a business proposal template looks like when done right:

How to Write a Business Proposal: Business Proposal Example Title Page

The executive summary details exactly why you're sending the proposal and why your solution is the best for the prospective client.

Specificity is key here. Why are you the best choice for them?

Like a value proposition, your executive summary outlines the benefits of your company's products or services and how they can solve your potential client's problem.

After reading your executive summary, the prospect should offer a clear idea of how you can help them, even if they don't read the entire proposal. Here's what one should look like:

How to Write a Business Proposal: Sample Executive Summary

3. State the problem or need.

This is where you share a summary of the issue impacting the potential client. This is your opportunity to show them you understand their needs and the problem they need help solving.

How to Write a Business Proposal: Example Event Overview

This section should show your authority in your industry. With this in mind, be sure to include:

  • Case studies
  • Client testimonials
  • Relevant awards
  • Industry accreditations

6. Include pricing options.

Pricing is where things can get a bit tricky, as you don't want to under or over-price your product.

How to write a business proposal: Include Pricing Options

The pricing section of your proposal could include:

  • A detailed pricing breakdown, including packages, tiers, and add-ons or optional services
  • How product features and benefits align with pricing choices
  • Pricing for different needs and budgets
  • How your pricing compares with competitors
  • An FAQ section to respond to anticipated objections and explain your pricing strategy

7. Summarize with a conclusion.

After sharing the above information, simplify it all into one final section.

  • First, briefly summarize the proposal. Be sure to share your qualifications and why you’d serve as the best choice.
  • Then, to prompt further conversation, confirm your availability to go over the next steps.
  • At the end of the proposal, the goal is to have the client ready to work with you. So, be sure to offer your contact information for easy follow-up.

In need of some inspiration before you begin writing? Here are example business proposal templates from popular business proposal software companies you can use to help create your proposal.

1. HubSpot's Free Business Plan Templates

HubSpot Business Proposal Template

Download these Templates

We know how crucial a great business proposal is to your and your client’s success. That's why we've compiled 2 Free Business Proposal Templates for you to use and customize for any of your projects.

You'll gain access to a concise, one-page template (pictured above), as well as a longer template for you to refine your plan and proposal.

Download the templates now to get started on building your proposal.

2. Web Design Proposal

Business Proposal Templates: Web Design

Companies, big and small, dedicate resources to establishing a noticeable social media presence. With advertising on social networks projected to reach $82.23 billion dollars in 2025 , it's in your business's best interest to have a plan for growing your client's social media presence.

To help you in that effort, the information in this social media marketing proposal includes an executive summary to help introduce your high-level ideas, an assessment of the client’s company to show your diligence, and a breakdown of billing to show how your company charges for posting, content creation, and analytics.

8. Content Marketing Proposal

Business Proposal Templates: Content Marketing

When pitching your content marketing services to clients, this template can help you organize your ideas. While it walks you through initial objectives and how to communicate your prospected results, one of the most helpful parts of this template is the pricing ideas it gives you when charging for your services.

Business proposal templates are helpful places to get started, but what should your business proposal look like when it's complete? Below, we share an example of a business proposal template that will inspire you.

In the business template example below, Social Portal Consulting (SPC) pitches a marketing proposal to Graphic Bean. At first sight, this proposal appeals to the creative. A nice touch would include designing the layout in your or your client’s brand colors.

Business Proposal Example: Social Media

Besides the design, the social media icons quickly tell the prospect what platforms Social Portal is pitching. Because we see Facebook, Twitter, Instagram, and Pinterest icons, the client instantly knows that this proposal doesn’t include LinkedIn, YouTube, or other platforms.

While maintaining its design, this example outlines Social Portal Consulting’s plans efficiently. It begins by providing insight into Graphic Bean and its goals before elaborating on how SPC can leverage its expertise to help them achieve them.

This business proposal template includes an easy-to-follow timeframe for goals and objectives while keeping the client abreast of how payment will happen across the project.

Overall, this is an excellent example of how to combine the elements of social media marketing into a creative and concise business proposal. Finally, we'll leave you with some business proposal ideas to get you started on your own.

  • Start with an outline.
  • Keep it simple.
  • Stay on brand.
  • Quality control.
  • Include data and visuals.
  • Add social proof.
  • Use a call-to-action.
  • Create a sense of urgency.
  • Make the decision for them.
  • Incorporate video into your proposal.
  • Include up-sell and add-on opportunities.
  • Clarify your terms and conditions.
  • Include a space for signatures to document agreement.
  • Create a table of contents.

1. Start with an outline.

If you want to produce a thoughtful, effective business proposal, you need to have some idea of what you're hoping to achieve with it.

So before you dive into writing, outline the major sections of your business proposal and the pertinent information you want to include. This will help you stay focused and make sure your message stays intact as you write.

Use these free business proposal templates to make sure that your outline includes everything you need.

2. Keep it simple.

There's no definitive blueprint for how long a business proposal has to be. Yours should be however long it takes to convey the information you want to get across.

That said, you're best off focusing on quality over quantity. Keep your sentences short and simple, and avoid including too much business jargon.

You want anyone who picks up your proposal to make sense of it. So, be straightforward and don't get too fancy. Aim for substance over flash.

3. Stay on brand.

Don't be afraid to let your company's personality shine through in your proposal. Stay true to your brand and show the client what sets you apart from your competitors.

4. Quality control.

A quick spelling and grammar check before you hit send isn't enough for a business proposal.

Your proposal needs to be clean and airtight. So, as you draft your proposal, and after checking for the basics, keep scanning this document until it's just right.

Check to make sure your proposal:

  • Meets client needs and expectations
  • Highlights your value proposition
  • Is well-structured and easy to read or skim
  • Complies with legal, ethical, and regulatory requirements
  • Looks professional and engaging

5. Include data and visuals.

You want your business proposal to capture your prospect's attention and help set you apart from any other ones they might have received. One of the best ways to do that is to include hard, quantitative data that helps stress the value of your business.

Use relevant, compelling figures that highlight what you have to offer. This can establish authority and make your proposal more convincing. It also helps to include visuals such as charts and graphs to enhance your proposal.

6. Add social proof.

You can only be so convincing when you're personally talking up how great your business is. Adding social proof lends your proposal another degree of credibility.

Prospects are skeptical. They may not take you at your word. But they'll likely trust peers and fellow customers. That's why including elements like customer quotes and testimonials can go a long way.

7. Use a call-to-action.

Prospects need direction. The best proposal in the world can only take you so far if you don't clearly define the next steps. That's why you have to make sure the reader knows what to do after reading your proposal.

A clear call-to-action is the best way to get there.

Define and highlight exactly what they should do to act on the interest your proposal has generated. Without that guidance, you might leave your reader in limbo.

HubSpot customers : Use this CTA builder to create powerful customized CTAs.

8. Create a sense of urgency.

No one wants to feel as if they missed out on a great opportunity. Without urgency, your prospect might drag their feet and put off making a decision.

So, as you create your business proposal, your goal should be to create a sense of urgency.

When prospective clients read your business proposal they should feel that the best time to sign up for your service is now.

One way you can accomplish this is by stating your short and long-term goals for their business. They'll have to wait for the long-term goals, but you can make the short-term goals so enticing that they'll be ready to begin a collaboration.

9. Make the decision for them.

Craft your copy in a way that seems like saying "no" to the proposal would be stepping over dollars to pick up pennies. Your offer should go above and beyond their expectations. Do everything in your power to remove friction and objections along the way.

10. Incorporate video into your proposal.

If you're creating an online proposal using document file formats like PDF, add multimedia elements. This will enhance the proposal experience, make your document richer, and keep them engaged.

Try adding a video at the beginning as an intro to your proposal. Or, put a video in the project breakdown to verbally discuss some of the more confusing parts.

Extras like this can make an impression. This tip works especially well with prospects who are visual or auditory communicators.

Pro tip : HubSpot Video makes it easy to record and embed video into a website or email for a big proposal boost.

11. Include up-sell and add-on opportunities.

They say you won't receive unless you ask. And readers won't explore the upper tiers of your solutions if you don't give them the opportunity.

So, share some upsells and add-ons about your business that they can act on. Call out a specific pain point and how this extra can add value.

With this step, balance is important. Show them everything your business has to offer without overwhelming your recipient.

12. Clarify your terms and conditions.

Your business proposal should include details on your project timeline and payment schedule. This summary is basically what you and the client agree to if they accept your proposal.

How to write a business proposal: Example Terms and Conditions

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