How to Write an Effective Proposal Letter

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
• Conclusion

What is a 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.

How to Write an Effective Proposal Letter?

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:

1. 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.

2. 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.

3. 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.

4. 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.

5. 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.

6. 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.

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:

A Proposal Letter Example

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.

Objectives

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.

Budget

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,

X

Conclusion

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.