Communication Essentials

Business Letters

LESSON 2
Content

• What is a Business Letter?

• Objectives of Business Letters
• What is a Personal Business Letter?
• What is a Persuasive Business Letter?
• What to Include in a Business Letter?
• Sections of a Business Letter
• 7 Cs of Business Letter Writing
• Business Letter Layout
• Types of Business Letters
What is a Business Letter?

• A business letter is a formal document often sent from one company to another or from a
company to its clients, employees, and stakeholders.

• Business letters are used for professional correspondence between individuals, as well.

• Although email has taken over as the most common form of correspondence, printed-out
business letters are still used for many important, serious types of correspondence,
including reference letters, employment verification, job offers, and more.

• Corporate recipients usually read a significant amount of correspondence on a regular

basis, and will favor well-executed letters that are free of typos and grammatical errors.
What is a Business Letter?

• Business letters are written to inform readers of specific information. However, they can
also function as a letter to persuade the other party to take some sort of action.

• Sometimes, business letters also functions as advertisements.

Objectives of Business Letters

• Every company has to maintain contact with its various partners like suppliers, customers,
and government agencies. Business Letters serve as the bridge to communicate with
these various parties. Some objectives of business letters are as below:

Building Goodwill
• An important purpose of a business letter is to sell good reputation and friendliness of a
company. It acts as an ambassador for the company. It aims at building goodwill in
customers-company relationship, holding present customers and inviting customers to
buy more products.
Objectives of Business Letters

Records and References

• Business letter are very useful as records and references of previous transactions. In
business, innumerable transactions or communications occur with a large number of
people that are not possible for a businessman to remember.
• When memory fails, business letters act as previous records and can be used for future
reference.

Making a Lasting Impression

• In case of oral communication, the impact of any message is felt mainly during the time of
hearing. And as soon as the next oral communication takes place, the effect of the
previous one is reduced.
• However, a letter makes a lasting impression on the readers’ mind as it stays with them
and works effectively every time it is read.
Objectives of Business Letters

Building and Maintaining Business Relations

• Business letters help build and maintain business relation among various parties like
manufacturers, distributors, intermediaries, support services and consumers.

Exchange Business Information

• An important objective of a business letter is to exchange business related information
between the parties involved. Most of the time, business people send letters to their
counter-parties containing various business information.
Objectives of Business Letters
Widening the Approach
• It is very difficult to send business representatives to all the places. But a letter can be
sent anywhere, no matter what the distance.

• Sometimes, executives, professionals, politicians, etc. are difficult to be approached

personally.
• A letter however, can find easy access to anybody. Thus, a business letter helps to widen
the area of business operations and also access a larger target audience.

An Authoritative Proof
• A business letter serves the purpose of evidence. A written commitment binds the
concerned parties to obey to the text of writing.
• A letter signed by a responsible person acts as an authoritative proof of what is said in it.
It can even be treated as a valid document that can be produced as evidence in a court of
law if any dispute arises.
What is a Personal Business Letter?

• A Personal Business Letter is a written from a person to a company.

• Personal Business Letter can be used for any purpose that requires written
communication from an individual to a company, such as:

• To Accompany Returned Goods

• Complaint Letter
• Thank you Letter
• Resume Cover Letter
What is a Persuasive Business Letter?
• The purpose of a Persuasive Business Letter is to sell an idea to someone, attempting to
get them to do something they may, or may not want to do.

• In order to write a persuasive letter, it is recommended to use the AIDA model.

• If some sends an unsolicited sales letter, that letter is just one of many. The AIDA model
can be used for any instance to catch the attention of people.

• In the formula, AIDA stands for:

• First paragraph Attention

• Second paragraph Interest
• Third paragraph Desire
• Fourth paragraph Action
Case Study

Example of AIDA Business Letter

Scenario: You are a web developer and know that within the next years all web sites must be
responsive - responsive means that a web site can be viewed on PC, tablets and smartphones.

How can you create a sales letter that sells the service “to create responsive web sites?”

Attention
"You will lose 40% of your users on your web site.”

• This could be the sentence that caches the CEOs attention: "40% is a lot, why?"
• He is now ready to read more.
Case Study

Interest
"Every year increases the use of tablets and smartphones by 30% compared to previous year.
When users browsing on their new devices come to your website they will experience an obsolete
web site. Your company´s layout is very difficult to read on the small screens.”

• Now there is awareness and interest in the problem.

Desire
"The problem reading your otherwise very good web site is big for the visitors and therefore you
will lose customers. But this problem can be solved! We have the technical knowledge and design
capabilities to correct the problem whatever web site system you are using. Contact us and we
make an analysis of the task ahead and give you a quotation to make your website better.“

• If the problem is perceived by the customer he´ll hopefully want to correct it. This will become
a sales opportunity and your company must be able to do it.
Case Study

Action
"PS - Contact us for free analysis of the size of the problem within 10 days. The cost of the
analysis is normally $ 850".

• It´s always great to save money and maybe this company will contact you today because the
manager wants to save $850 too.
What to Include in a Business Letter?
• The purpose of a letter must be clear through simple and targeted language. Opening
paragraph must be kept brief. A business letter can start with “I am writing in reference
to…” and from there, communicate only what is needed to say.

• The subsequent paragraphs should include information that gives readers a full
understanding of objective, but avoid meandering sentences and needlessly long words.

• Again, keep it concise to sustain their attention.

What to Include in a Business Letter?

• If the intent of the business letter is to persuade the recipient in some way, such as to
invest money, give a reference, hire the writer, partner with the writer, or fix an issue,
create a compelling case for the cause.

• Example, if the writer wants reader to sponsor a charity event, they must identify any
overlap with their company’s philanthropic goals.

• The reader must be convinced that the sponsorship would be mutually beneficial, then
there will be increased chances of winning their support.
Sections of a Business Letter
• Each section of a business letter should adhere to appropriate format, starting with
contact information and that of the recipient’s, salutation, the body of the letter, closing,
and finally, signature.

Sender’s Address
In the address section, all contact information of the sender must be available. It must
include:
• Name
• Job Title
• Company
• Address
• City, State Zip Code
• Phone Number
• Email Address
Sections of a Business Letter

• Optimally, the sender can have all these information printed in the company letterhead.

• Letterhead usually conveys that a business is legitimate.

• But even if the address is simply typed at the top, including address in letters plays a
practical purpose, so the recipient doesn’t have to look up for the address in order to send
a response.

Date
• The date of penning the correspondence must be stated in the letter.
Sections of a Business Letter
Example of Sender’s Address and Date:

Xavier Lau
Assistant Coordinator, Happyland Helpers
123 Business Rd.
Business City, NY 54321

Phone: 555-555-5555
Email: xavier.lau@email.com

15 October 2021
Sections of a Business Letter

Recipient's Contact Information

• Recipent’s Contact Information should include the following information:

• Their Name
• Their Title
• Their Company
• The Company’s Address
• City, State Zip Code

• It is also to have these information on the envelope of the letter, especially if it is sent via
mail. This is to ensure the letter doesn’t get lost or misplaced, or given to the wrong
person.
Sections of a Business Letter

Salutation
• Use "To Whom It May Concern," if it is unsure specifically who is being addressed.

• Use the formal salutation “Dear Mr./Ms./Dr. [Last Name],” if the recipient is not known to
the sender.

• Use “Dear [First Name],” only if there is an informal relationship with the recipient.
Sections of a Business Letter
Example of Receiver’s Address and Salutation:

Portia Lee
Owner, Acme Travel
321 Metropolis Ave.
New City, NY 12345

Dear Ms. Lee,

Sections of a Business Letter

Body
• Time is a very important aspect in business, so get down to business and quickly
communicate the message. A business letter must always include the reason for writing.

• Start with, I am writing to…

• find out
• apologise for
• confirm
• comment on
• apply for
Sections of a Business Letter

• Stay professional, be clear and concise, and quickly convey the point of the letter.

• Use single-spaced lines with an added space between each paragraph, after the
salutation, and above the closing.

• Justify the letter against the left margin.

Sections of a Business Letter
Example of Letter Body:

I’m writing to you today on behalf of Happyland Helpers. We’re a small organization that
helps low-income families who need after-school care for their young children. We offer
grants to families and free transportation for their children so that they can attend one of the
local after-school daycare centers.

Every year, we hold a fundraising event: the Happyland Carnival at Floyd Rosedale Middle
School. I’m hoping you may be interested in donating to our silent auction and raffle.

We’re looking for items such as gift baskets, housewares, toys, and other useful items.
Cash donations are also appreciated if you prefer. This year, all proceeds will go towards
buying the new van that we need to transport the children.

If you’re interested in making a donation, please let me know by email

xavier.lau@email.com, or by cell phone (555-555-5555) if you have any questions.
Sections of a Business Letter
Closing Salutation
• Keep the closing paragraph to two sentences. Simply reiterate the reason for writing and
thank the reader for considering the request. Some good options for closing include:

• Respectfully yours
• Yours sincerely
• Cordially
• Respectfully

• If the letter is less formal, consider using:

• All the best

• Best
• Thank you
• Regards
Sections of a Business Letter

Signature
• Write a signature just beneath the closing and leave four single spaces between closing
and the typed full name, title, phone number, email address, and any other contact
information that is included.
Sections of a Business Letter
Example of Closing Salutation:

Sincerely,

Signature (hard copy letter)

Xavier Lau
Here is the example of a complete letter:
Sections of a Business Letter
There are some optional parts in a business letter that may be helpful. They include:

Attention line
• If the letter is going to a large company, an attention line can provide the bit of necessary
emphasis so that the letter goes where it needs to go.

• Write “Attention:” and then the name of the recipient. The attention line should go two
lines below the recipient address.

Example: Attention: Human Resources

Sections of a Business Letter
Subject or Reference Line
• This part can focus the recipient on the letter’s actual purpose. Start with a “Subject:” or a
“Re:” or write in all caps.

Example: Re: Submission of the required documents for XYZ

Notations
• Some notations in business letters are:

• Private & Confidential

• Urgent
7 Cs of Business Letter Writing
• A business letter is not meant to entertain its reader.

• It is written primarily to state a specific purpose or message and eventually, get a reaction
or an answer from its receiver.

• Business means the sender and receiver are serious, so the message that is put across
should be clearly understood. Thus, always remember the seven C's to be mentioned in
the letter.
7 Cs of Business Letter Writing

Concise
• It should directly state the purpose of the sender in as few words as possible.

• With all the paper work in the office, people tend to put aside those letters which will take
them more than a few minutes to read.

• Example, a business executive from a very large firm doesn't have as much patience as a
person working abroad who is homesick for word from his or her family. Thus, the
business executive needs concise information in his job, compared to someone that is
writing to his family.

• Thus, there is a need for brevity in business letters.

7 Cs of Business Letter Writing
Cordiality
• A warm and friendly business letter produces better results than a stilted, pompous or
antagonistic one.

Convincing
• In the writer's effort to be cordial, he must not also forget to be convincing.

• Conviction is essential in order to make the recipient of the letter believe that the sender is
willing and sincere in his desire to do business with the former, or that he is firm in his
resolve to carry out the contents of the letter.

Clarity
• A business correspondence that leads its receiver in the dark regarding the point of the
letter will only go as far as the nearest trash can - which is why there is need for clarity.

• State the matter in simple and familiar words. Do not use highly technical or pompous
words. Start the letter by stating objective for writing.
7 Cs of Business Letter Writing
Completeness
• Include some minor details necessary to achieve the purpose of the letter.

• Example, it is not enough to just indicate what position a writer is vying for in an
application letter. What good would it do if he just says he is applying for a particular
position in a company without mentioning his qualifications?

• However, due to the fact that big companies receive numerous letters, not to mention
application letters, the big bosses sometimes just scan the contents of the letter.

• They don't always read letters thoroughly. Hence, it is absolutely necessary for business
writers to observe correct format, correct grammar, correct spelling and correct
punctuation for easy reading.
7 Cs of Business Letter Writing
Correctness
• If a personnel manager scans an application letter and just by glancing it, he sees
something wrong, he'll just put it under the pile of letters, or much worse, he'll discard it at
once.

• Business letters represent the individual writer themselves and/or the companies who
sent them. This is the reason why correctness in writing business letters should be
emphasized.

• A correct business letter is one which is typewritten or computer-encoded on a plain,

white bond paper measuring 8 1/2 x 11 inches with 1 inch margin on all sides.

• Observe symmetry when writing the contents. Usually, the whole body should neither be
too high or too low as to exceed the 1 inch margin. It should cover the center page of the
paper or should focus on the middle eye level.
7 Cs of Business Letter Writing
Coherent
• Aside from checking for grammar, the letter must also stay focused and coherent on one
subject.
Business Letter Layout

• The layout of a business letter is important.

• Structure the letter in the right way, and it will be easy to read and professional.

• This will help get the message across and make a good impression on the readers.

• Identify how to format a business letter on the page, including what to include in the letter,
how to format each paragraph, and which font, salutation, and closing to choose.

• Also, review quick tips on spelling, grammar, and tone to perfect the letter.
Business Letter Layout
Letter Font and Spacing
• Properly space the layout of the business letters, with space between the heading, the
greeting, each paragraph, the closing, and signature.

• Single-space the letter and leave a space between each paragraph. When sending typed
letters, leave two spaces before and after the written signature.

• Left-justify the letter, so that contact information, date, letter, and signature are all aligned
to the left.

• Use a plain font like Arial or Calibri. Make sure that the font size used is large enough that
readers don’t need to reach for their glasses; the standard font size for these fonts is 11-
point or 12-point.
Types of Business Letters
Some common types of Business Letters include:

Cover Letters
• A cover letter is a one-page document that candidates submit along with their resumes. It
takes the employer on a guided journey of their greatest career & life achievements.

• This is an important document to show skills, experience, and why a person is fit for the
position they are applying for.
Sample Cover Letter

Good:
• Good Format

Bad
• Too long
• Font too small
Types of Business Letters
Business Invites
• These letters are a formal way to reach out to a company or an individual and invite them
to attend an event hosted by the writing company.

• As business events tend to be formal, an invitation letter is most likely to be formal as

well. But, if it is a casual event, it should be reflected in the invite and tone.

• Tips:

• Write the letter in such a way that it builds anticipation about the event.

• Clearly mention the date, time, and venue.

• Set a friendly follow-up to remind them of the event.

Types of Business Letters
Complaint Letter
• This letter is a way to formally express disappointment formally.

• A complaint letter can report a bad experience, poor customer service, or let a company
know that their products didn’t meet customer’s expectations.

• The key to this letter is that it shouldn’t sound nagging, but also shouldn’t lose its
importance if the writer wants it to be taken seriously.

• Tips:

• Don’t get too emotional or over-the-top angry. Just state the facts.

• Be cordial and professional. Let them know the entire story and preferred way for
them to rectify their mistakes.
Sample Complaint Letter
Types of Business Letters
Letter of Resignation
• A Letter of Resignation is a document that notifies an employer that an employee is
leaving the job.

• Whether working at a coffee shop or a big-shot company, it’s proper protocol to submit a
letter of resignation before leaving.

• Also, if there isan urge to send an incendiary letter of resignation, don’t give in! There are
chances writer might cross paths with these people again.

• Tips:

• Keep it simple, stick to the facts, and don’t start complaining. Resignation letters are
not the right place for complaints & critiques.

• Thank the boss and/or the company for the opportunities and describe some of the
key things learned on the job.
Sample Resignation Letter
Types of Business Letters
Order Letters
• Also known as “purchase orders”, these letters are used to order things or buy material.

• They act as a legal record, documenting the transaction between the buyer and seller.

• These letters are generally written by one business to another business to make an order
or to modify it.

• Tips:

• Be concise and clear to avoid any misunderstanding or confusion.

• Include everything the seller would need to deliver the order and get the payment.

• Provide contact information for future conversations or follow-up.

Types of Business Letters
Recommendation Letters
• These letters intend to recommend someone for an internship, job, fellowship, or other
such opportunities.

• Before hiring an employee, many employers ask for such kinds of letters. It tells why the
person the letter is about is a good person to hire and describes their strengths & abilities.

• Tips:

• Be honest and don’t agree to write a letter to someone that is not known.

• Use specific examples to highlight the person’s strengths, skills, and abilities.

• Include why the candidate would excel in the role.

Types of Business Letters
Offer Letters
• An offer letter is an official offer of employment that describes the specific terms of the
position.

• If a potential employee agree to the terms the letter offers, then they will sign the offer
letter and accept the job.
Types of Business Letters
An offer letter should include the following:

Job Description
• This item outlines the specific job tasks and requirements of the role.

Job Title
• A letter that states the official name of the position for the right role.

Requested Start Date

• This is the date on which the potential employee will begin employment.

Salary and Benefits

• This information includes the offered salary, bonus and benefits that come with the role.

Acceptance Timeline
• This is the date by which the candidate must respond to the offer letter.
Types of Business Letters
Sales Letters
• The purpose of a sales letter is to introduce a service or product to a client or customer.

• Sales professionals often use these letters when making new contacts with prospective
buyers or strengthening relationships with longtime clients.

• A sales letter often includes the following:

• Description of Product or Service

• Cost

• Call to action
Types of Business Letters
Letters of Commendation
• Letters of Commendation are a form of employee appreciation, and companies send them
out to the entire staff to congratulate an employee for a job well done.

• They may include the following:

• Purpose
Begin a letter of commendation identifying who is being commended and for what
reason.

• Details of the Commendation

Include details about the specific tasks, achievements or awards for which the team
member is being recognized.

• Call to Action
The letter may also include a call to action that encourages fellow employees to
congratulate the team member on their success.
Types of Business Letters
Thank You Letters

• A professional Thank You Letter is an important way to let colleagues, employers, vendors
or other business contacts know value their time or efforts are valued.

• Sending a professional thank you letter will build rapport with the recipient and
communicate the company’s intentions for the future.

• It might be appropriate to send a Thank You Letter after someone helps with a job search,
when a customer makes a purchase, or if the company lands a sales contract.
Types of Business Letters
Thank You Letters

• A professional Thank You Letter is an important way to let colleagues, employers, vendors
or other business contacts know value their time or efforts are valued.

• Sending a professional thank you letter will build rapport with the recipient and
communicate the company’s intentions for the future.

• It might be appropriate to send a Thank You Letter after someone helps with a job search,
when a customer makes a purchase, or if the company lands a sales contract.
Types of Business Letters
Office Memorandum
• An office Memorandum or business memo is a short yet formal document used for
communication between the business and its employees.

• Effective memos are brief and easy to navigate. The document is primarily for internal
use, such as an announcement regarding changes to personnel within an organization or
updates on company gatherings.

• Office memos should include:

• A clear and straightforward subject

• The intent of the memo

• A breakdown of the information

Q&A Session