proposal letter

Composing a business proposal letter is a daunting task. A good proposal letter takes much thoughts and strategy. While some businesses thinks that the proposal letter is just a formality, savvy businesses use the proposal letter as a key tool to pitch their solution against the competition. 

Read on for tips on how to create a proposal letter.

Key Content to Include in a Proposal Letter


Address Your Prospective Client

Address your prospective client

Always start your proposal/cover letter by addressing your prospect. Many times people start their cover letter by writing something like “To whom it may concern” (this is unacceptable).

Find out the names of all the key contacts who will be reviewing your proposal and address them specifically. By addressing your proposal cover letter directly to key contacts will help you make quick connections and immediately increase the chances that they’ll read your letter. And it will make a very good first impression and show that you care.

But what if you don’t know who the right people are? This is where you need to put in some effort. Here are some ways to find this out,

  • Scan your website
  • Leverage common connections
  • Telephone them directly



State Your Purpose

state your purpose

Don’t start with a descriptive introduction instead get straight to the point, and focus on outlining how your solution will work for their pain points.

For Unsolicited Approach

Start by asking a question to help bring your solution into the next scene.

Clear why you’re the right fit by talking about how you’ve helped other companies achieve similar results.

For Solicited Approach

Initiate by referring to the prior discussion you had with your prospect during your initial meet.

Quickly add 2-3 good reasons to make them believe that how your customizable and transparent solution will work for them. Use statements that highlight positive outcomes.




Give Some Background Information That Sets You Apart

set your company apart

Along with outlining how your solution can solve their CORE pain point, you need to showcase your valuable assets that sets you apart from your competitors. 

  • Talk about the years of experience you have in the industry.
  • Include past experience with a similar issue by outlining the unique process you followed to achieve successful results.

Wrap Up By Restating the Problem and the Proposed Solution

conclude the proposal letter

Just like any good sales communication, end your cover letter with a strong CTA. State what you want them to do next and who they should contact for further questions or concerns. 

Closing a proposal letter means summing up all the main points, resolving challenges, and finishing with a flourish. Restate why the action is needed and highlight the benefits of your solution to your client’s company. 

I hope that you’ll consider these tips while drafting your next cover letter for the business proposal. I would also urge you to keep tracking how interaction and conversion ratio because of the new cover letter in your business proposal. 

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