What is a Business Letter?

(Definition)

A business letter is a professional, formal letter that is sent by one company

to another. These letters can be used for professional correspondence
between business clients, employees, stakeholders as well as individuals.

Whether you need to tell a potential client about your product, collaborate
with another company, convince someone to attend your event, or give a
thank you note – a well-written business letter can stand out.

Types of Business Letters

1. Cover Letters
First up, 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.
No matter if you’re a student or an experienced professional, a cover letter is an important
document to show your skills, experience, and why you’re fit for the position you are applying
for.
2. 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 your company.
As business events tend to be formal, an invitation letter is most likely to be formal as well. But,
if you are organizing a casual event, it should be reflected in your invite and tone.
3. Complaint Letter
This letter is a way to formally express your disappointment formally. You can report a bad
experience, poor customer service, or let a company know that their products didn’t meet your
expectations.
The key to this letter Is that it shouldn’t sound like you are nagging, but also shouldn’t lose its
importance if you want to be taken seriously.
4. Letter of Resignation
A letter of resignation is a document that notifies your employer that you’re leaving your job.
Whether you work at a coffee shop or a big-shot company, it’s proper protocol to submit a letter
of resignation before you leave.
Also, if you have an urge to send an incendiary letter of resignation, don’t give in! You might
cross paths with these people again.
 5. 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.
6. Letter of Recommendation
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.
How to Write a Business Letter in 9 Simple Steps? (Format or Structure)
Step 1: Sender’s Information
If you want a reply, you need to understand how to address a business letter properly.
In this section, you’ve to write your address, contact number, and email address.
Many people include their full name at the top too. However, others think that it’s unnecessary
because you are going to sign the letter with your name anyway.
Want to save some time?
Well, if your company has a letterhead, you can use that instead of typing out all the information.
Step 2: Date
Rather than abbreviating with numbers, write the entire date.
When you’re writing to American companies, use the American date format i.e, put the month
before the day.
Example: October 20, 2016
Write the date before the month if you’re sending a letter in the U.K. or Australia.
Example: 20 October 2016
Step 3: Recipient’s Address
This is the address where your letter will be delivered.
Write the recipient’s name, their title (Ms./Mrs./Mr./Dr), and their address.
Make sure you’re as specific as possible so that it reaches the right
destination.

If you don’t know the person’s name, a little research won’t harm you! Call
the company or speak to the employees of the company to find out the
name.

Example:

Mr. Mike Brown

Executive Director

XYZ, Inc.

602 Melrose Avenue

Los Angeles, California 90038

Tips:

 In case you’re unsure about a woman’s preference in being addressed,

use ‘Ms’.
 If you think that your recipient uses ‘Dr’ or has some other title, use
that. (Usually, people don’t mind being addressed by a higher title than
they actually possess, but they don’t wanna be addressed by a lower
one.)
Step 4: The Salutation
A salutation isn’t just a simple greeting, it’s an indicator of respect. You can choose the salutation
based on how well you know the person and the context of your letter.
If you know the person you’re sending the letter to, and you mostly address them with their first
name, it’s okay to use their first name in the salutation. (For example, Dear Mike)
However, there are exceptions to this case too.
Let’s take an example.
The dean at XYZ college might be your uncle, but if you’re writing to him regarding an official
matter, it would be best if you use the salutation “Dean (Last Name)” or “Dr. (Last Name)”
because there’s a chance that other people handle his letters and emails.
If you don’t know someone, always use the personal title and their last name.
If you are not sure of someone’s gender, you can use their full name. (For example, Dear Taylor
Brown)
If you don’t know specifically whom you’re sending the letter to, use “to whom it may concern.”
Whatever the situation is, make sure that you end the salutation with a colon. (Not a comma!)

Step 5: The Body

This is the most important part of your letter. The body should contain a few
(mostly three) concise paragraphs, each with a clear purpose.

If you want your reader to get the best possible impression, keep your
message crystal-clear.

In the opening paragraph, introduce yourself and clarify the point of your
letter. You can also mention mutual connections here, in case the recipient
doesn’t know who you are.

Not sure how to start?

You can write “I am writing to you regarding…” as the opening line.

In the next paragraph, go into the details of your main point.

In the closing paragraph, briefly summarize your points, restate the letter’s
purpose and tell your planned course of action.

Tip: Try to avoid lengthy, meandering sentences and just get straight to the
point.

Step 6: Closing

Here, you’ll mention that the recipient can contact you or your team if he has
any concerns or questions. You can also thank him or her for reading the
letter.

Make sure that the closing isn’t more than two sentences long!

For instance, you can write:

  Kindly email me at (your email) to schedule a meeting. Thank you!
 If you have any queries, don’t hesitate to call me at (your contact number).

Step 7: Complimentary Closing

This is a short remark that marks the end of your letter. You’ve got a lot of
options here but choose the one that reflects the formality of your
relationship.

Recommended formal closings include “Yours Truly” or “Respectfully” or

“Sincerely”.

If your letter is less formal, you can write “All the best” or “Thank you” or
“Regards” or “Best”.

Regardless of what you choose, add a comma to the end of it.

Step 8: Signature

Below the complimentary close, sign the letter.

Make sure that you skip at least four lines so that there’s enough room for
your signature. After that, type out the name that has to be signed.

You can include your job title below your full name too.

Step 9: Enclosures (If applicable)

If you plan to send anything along with your business letter, you can indicate
this simply by writing Enclosures after the signature.

Consider it the print version of “please find attached” for emails.

If you have included many documents, make a list that tells the recipient
what he needs to look for in the envelope.

Writing routine & Persuasive letters

Writing routine and persuasive letters are two common types of business communication that
serve distinct purposes. Here’s an introduction to both:
Routine Letters:
Routine letters are standard, everyday business correspondence that convey information or
handle routine matters. They do not typically require a persuasive tone. Instead, they focus on
providing information in a clear, concise, and professional manner. Some common types of
routine letters include:
1. Inquiry Letters: These are used to seek information from another party. They can be
used to ask for product details, pricing, availability, or any other information relevant to
the business.
2. Order Confirmation Letters: These are sent to confirm that an order has been received,
processed, and is being prepared for shipment.
3. Acknowledgment of Receipt Letters: These confirm that a document, payment, or
shipment has been received. They serve as a record of the transaction.
4. Transmittal Letters: These accompany documents being sent to someone, providing an
overview of what is enclosed and why it is being sent.
5. Follow-Up Letters: These are sent to reiterate or confirm details after a conversation or
meeting has taken place.
6. Appointment Letters: These confirm a scheduled meeting, interview, or appointment,
including details like date, time, and location.
Key Elements of Routine Letters:
1. Sender’s Information: This includes the sender’s name, title, company name, address,
and contact information.
2. Date: The date the letter is written.
3. Recipient’s Information: The name, title, company name, and address of the person
receiving the letter.
4. Salutation: The formal greeting addressed to the recipient.
5. Body of the Letter: The main content of the letter, which includes the message, relevant
details, and any necessary explanations or justifications.
6. Closing: A polite closing phrase, such as “Sincerely” or “Thank you,” followed by the
sender’s signature and printed name.
7. Enclosures or Attachments: If there are any additional documents or materials included
with the letter, they should be mentioned here.
Persuasive Letters:
Persuasive letters are written with the intent of convincing the recipient to take a specific action,
make a decision, or adopt a particular point of view. They often employ rhetorical techniques
and persuasive language to influence the reader’s thoughts or behavior. Some common types
of persuasive letters include:
1. Sales Letters: These are used to promote a product or service, aiming to persuade the
recipient to make a purchase.
2. Proposal Letters: These are used to present a business proposal or idea, with the goal of
gaining approval or support.
3. Recommendation Letters: These advocate for a specific course of action or choice, often
in a professional or academic context.
4. Complaint Letters (with a persuasive tone): While complaint letters can also be routine, a
persuasive approach may be used to request a resolution or compensation.
5. Request for Funding or Sponsorship Letters: These seek financial support for a project,
event, or cause.
Key Elements of Persuasive Letters:
While persuasive letters share many elements with routine letters, they also include:
1. Clear Call to Action: Clearly state the action you want the recipient to take. Make it
specific and easy to understand.
2. Emphasis on Benefits: Highlight how the recipient will benefit from taking the desired
action.
3. Strong and Convincing Language: Use persuasive language and arguments to make your
case.
4. Addressing Potential Concerns: Anticipate and address any potential objections or
concerns the recipient may have.

What is a Memo?
A memo is actually short for Memorandum. It is one of the most used means of official
communication in the business world. Its main purpose is to serve as a reminder or to
give some instructions. Again these like circulars are a means of mass communication,
i.e. to communicate with a large number of people within the organization.

Usually, we write a memo is for one of the following five reasons

i. as a reminder
ii. highlight an event or circumstance
 iii. to recount an event
iv. keep an official record of anything
v. to pass information or instructions
Memos have been a popular way for commuting for over a century now. This is
because they have many advantages as seen below:

 They are a very cost effective way of mass communication. And their
transmission is also very cheap.
 Another advantage is its simplicity. They are very simple to write and
understand.
 Memos tend to be brief and to the point. They also reach a lot of people. So
they are very time-saving as well.
 They also serve as evidence in case of a dispute

Let us see the steps of writing a memo.

 Heading: After the name and address of the company (which is on the letterhead) we
type the word “Memo’ or ‘Memorandum’ at the top of the page in the center.
 Recipient: Address the recipients in the correct format, Example –‘ To: All Employees of
the Sale Division’
 Writer: Write the name of the person writing the memo, Example – ‘From: Mr. ABC, Head
of Sales’
 Additional Recipients: These are the people who will receive a courtesy copy of the
memo. We don’t address the memos to them, but we keep them in the loop.
 Date: The date of writing the memos is an important detail that one must include.
 Subject Line: This will give the reader a brief idea about the information in the memos.
The line must be brief, precise and to the point. Example – Subject: Meeting of all
employees of the Sale Division.
 The body of a memo: This is where all the information is contained. A formal salutation
is not required in a memo. Just relay the necessary information with clarity and
precision. The body must not be too long. The ending must restate the issue and end on
a positive note.
  Proofread: Finally, proofread the memo before sending it.
Format of memo in business communication

Launch Delay Memo

Building Update Memo

Kinds of report

Report writing is a formal style of writing elaborately on a topic. The tone of a

report is always formal. The important section to focus on is the target audience.
For example – report writing about a school event, report writing about a business
case, etc. Let us briefly discuss the different kinds of reports
Reports are written with much analysis. The purpose of report writing is essential
to inform the reader about a topic, minus one’s opinion on the topic. It’s simply a
portrayal of facts, as it is. Even if one gives inferences, solid analysis, charts, tables
and data is provided. Mostly it is specified by the person who’s asked for the report
whether they would like your take or not if that is the case.
Kinds of Reports
Based on some special characteristics, a report can be a certain kind. Why classify
them in kinds? Well, depending upon the purpose of the report, it’s always best to
know what kind would be the best for that case.

For example, informal reports in office formal contexts may not be suitable. In that
case, even if your report is on point and the best, just the structure or format or
language could work against your report.

Small things like that should not stand in the way of you conveying your point.
And thus for these reasons and more, let’s dive into the kinds of reports that exist
so we can make clear decisions of their usage.
 Long Report and Short Reports:
 These kinds of reports are quite clear, as the name suggests. A two-page report
or sometimes referred to as a memorandum is short, and a thirty-page report is
absolutely long. But what makes a clear division of short reports or long
reports? Well, usually, notice that longer reports are generally written in a
formal manner.
 Internal and External Reports:
 As the name suggests, an internal report stays within a certain organization or
group of people. In the case of office settings, internal reports are for within
the organization.
 We prepare external reports, such as a news report in the newspaper about an
incident or the annual reports of companies for distribution outside the
organization. We call these as public reports.
 Vertical and Lateral Reports:
 This is about the hierarchy of the reports’ ultimate target. If the report is for
your management or for your mentees, it’s a vertical report. Wherever a
 direction of upwards or downwards comes into motion, we call it a vertical
report.
 Lateral reports, on the other hand, assist in coordination in the organization. A
report traveling between units of the same organization level (for example, a
report among the administration and finance departments) is lateral.
 Periodic Reports:
 Periodic reports are sent out on regularly pre-scheduled dates. In most cases,
their direction is upward and serves as management control. Some, like annual
reports, is not vertical but is a Government mandate to be periodic in nature.
 That is why we have annual or quarterly or half-yearly reports. If they are this
frequent, it only makes sense to pre-set the structure of these reports and just fill
in the data every period. That’s exactly what happens in most cases too.
 Furthermore,

 Formal and Informal Reports:

 Formal reports are meticulously structured. They focus on objectivity and
organization, contain deeper detail, and the writer must write them in a style that
eliminates factors like personal pronouns.
 Informal reports are usually short messages with free-flowing, casual use of
language. We generally describe the internal report/memorandum as an informal
report. For example, a report among your peers, or a report for your small group
or team, etc.
 Informational and Analytical Reports:
 Informational reports (attendance reports, annual budget reports, monthly
financial reports, and such) carry objective information from one area of an
organization to maybe a larger system.
 Analytical reports (scientific research, feasibility reports, and employee
appraisals) show attempts to solve actual problems. These analytical reports
usually require suggestions at the end.
 Proposal Reports:
 These kinds of reports are like an extension to the analytical/problem-solving
reports. A proposal is a document one prepares to describe how one
organization can provide a solution to a problem they are facing.
 There’s usually always a need to prepare a report in a business set-up. The end
goal is usually very solution-oriented. We call such kinds of reports as proposal
reports.
 Functional Reports:
 These kinds of reports include marketing reports, financial reports, accounting
reports, and a spectrum of other reports that provide a function specifically. By
 and large, we can include almost all reports in most of these categories.
Furthermore, we can include a single report in several kinds of reports.

Importance of business reports

1) Evaluation
In a large-scale organization, it is necessary to operate as a cohesive unit. To
successfully do this, the manager requires reports from different sectors to evaluate
business activities.
2) Decision Making
There are large pools of information spread across various sectors. Therefore a crucial
importance of a business report is, that it supplies the executive with all the relevant
information required. This information is used to make decisions and formulate
strategies.
3) Analysis
Another main purpose of a business report is to help in maintaining statistics and
patterns. They provide a reference point to the managers to help implement changes
for tracking progress and future development
4) Investigation
Business reports are also used to identify problems and shortcomings. For example, if
a company has not performed well in one quarter, a report can be used to help it
bounce back in the next one.
5) Development of Skill
The archive of reports builds an organization’s knowledge base. This information is
used by managers and employees to develop their skills and carry out tasks
effectively.
6) Performance Tracker
A report is used to summarize the performance of employees and teams. It keeps track
of goals and how much work is being done to meet them. Reports are also relied on
for promotions and personnel changes.
7) Proper Control
Business reports are used to ensure operations are going according to the company’s
plans and goals. This is why report writing is important as it helps in easily identifying
the areas that are performing well and ones which need more work.
8) Managerial Tool
Managers use reports to plan, motivate and control the workflow of their subordinates.
The success of a business relies heavily on informed decisions. These decisions are
made using essential information provided by regular business reports.
9) Neutral Representation of Facts
A business report documents facts and statistics in an unbiased format. This
information is used to evaluate, investigate and make informed business decisions.
10) Keeping Permanent Record
Another prime importance of a good report is that they are the informational library of
a company. They are used to keep archives of all events that happen during the
lifespan of a business.

Types of business reports and their importance for business

1) Market survey report– The market survey report provides detailed information on
the target market set by the organization before launching its product and services in
the region.
2) Informational report– Reports such as sales report, annual reports, and financial
report that helps the organization to obtain crucial business information are called
informational reports.
3) Analytical report– Reports such as employee appraisals, scientific reports, and
accounting reports, which help businesses to make crucial business decisions are
called analytical reports.
4) Progress report– Progress report is also defined as a status report which contains
information related to ongoing projects and business activities.
Format of report writing

The formal presentation of information is divided into two

broad categories: Presentation Skills and Personal
Presentation.

These two aspects are interwoven and can be described as the

preparation, presentation and practice of verbal and non-
verbal communication.