Business letters are a common form of communication for many professionals. People write and receive a business letter at some point in their careers. They write business letters for different purposes, such as applying for jobs, following up, and making recommendations to other companies or clients. Writing a letter may initially seem challenging; however, it can’t be easier than ever if you’re using the correct business letter format.

Since business letters are written for professionals or companies, it’s crucial to use an effective business letter format that communicates the reason for sending them clearly. So, what should an ideal business letter include? 

Business letters are an important communication tool among businesses, maintaining lasting professional relationships. To make your business letter more effective, write it concisely and easily. It is also better to use a business letter format with formal language and tone, helping to establish your brand credibility and foster trust with other businesses and customers.

Let’s find out the details In this comprehensive guide. We will also discuss the 6 essential components to format your business letter and make it more polished. We’ve also provided a basic template along with 5 examples based on different purposes to help you understand better.

What is a Business Letter?

A business letter refers to any formally written document that serves official purposes. Usually, a business letter is sent from one company to another or to different clients, government agencies, stakeholders, or employees for formal transactions. This makes business letter formatting crucial as it displays uniformity and organization. It contains essential information like business transactions, agreements, and inquiries. 

This official document is used for various purposes, such as sales, customer service, inquiries, job recommendations, administrative tasks, and more.

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How to Format a Business Letter: Step-by-Step Guide

Formatting a business letter isn’t an overwhelming process. You only need to follow a few easy steps. Here, we have mentioned six things to keep in mind for maintaining a business letter format:

1. Document Settings

Before initiating a business letter, set the font style to Arial or Times New Roman and the font size to 12. Ensure your writing is single-spaced, the text on the left side is aligned, and the paragraphs are small, like each paragraph should have 2-4 lines max. Moreover, leave a two-inch gap at the top and bottom and a one-inch margin on both sides of the document.

2. Contact Details and Date

Usually, the letterhead is placed centered or left-aligned at the top of the document with the individual or company’s name and contact details or company logo (if relevant) on the top lines. Below the letterhead, add your and the recipient's contact information. Follow this list in the same order:

• Your Name
• Your Job Title
• Your Company Name
• Your Business Address
• Your Business Phone Number
• Your Business Email Address

Skip a line at the end of the contact information and insert the date of the business letter writing. Then, place one more line and add your recipient’s information.

• Your Recipient’s Name
• Your Recipient’s Title
• Your Recipient’s Company
• Your Recipient’s Company’s Address

Next, again, skip a line and enter the subject of your business letter in bold.

3. Salutation

A business letter is a formal document; the salutation should match the professional nature of the letter. Use a salutation based on how familiar you are with the recipient, such as Dear [last name] for formal writing or Dear [first name] if you know the recipient informally.

4. Body

Start writing by using single-line spacing with an extra space between paragraphs for better readability. A business letter body is usually divided into three parts: Introduction, main text, and conclusion. The primary purpose is here to keep the business letter to a single page. Here’s a detailed overview:

• Introduction (Highlight the main point of the letter, including why you are writing it and the targets to achieve, and quickly cover the essential information)
• Main Text (Provide a detailed explanation regarding the key pointers you’ve mentioned in the introduction in 1 to 5 lines)
• Conclusion (Sum up everything you’ve mentioned above, including a call to action or next steps, if relevant)

5. Closing Salutation

Similar to an opening salutation, a closing salutation also depends on how familiar your relationship is with the recipient. These are some widely used closing salutations in business letters:

• Sincerely
• Respectfully
• Cordially
• Best
• Kind regards
• Thank you
• Regards
• All the best

If you are not sure what the best remark should be, then you can use “Yours Sincerely.” Once you are done with the closing salutation, add your signature to the document later, which includes your full name, job title, business email address, and phone number.

Things to Consider (Optional)

• If you want to add any additional documents (e.g., a resume, list of items, etc.), make a list and add it to the enclosure after your signature and name.
• If you’re sending a business letter for sales purposes, consider including a call to action at the bottom of the letter.
• Before sending your business letter, always proofread it. Check whether it’s properly formatted, and it should be grammar, punctuation, and spelling error-free.

Basic Template: Business Letter Format

Here’s a basic template for the business letter covering all key pointers that we have mentioned above. 

Examples of How to Write as per Business Letter Format

Before writing a business letter, it’s always a good idea to look at some examples of the letter. To help you understand business letter format, here we have covered the top 5 business letter examples:

1. Business Letter Format for Job Application

2. Business Letter Format to Complaint

3. Business Letter Format for Follow-Up

4. Business Letter Format for Recommendation

5. Business Letter Format to Thank You

When to Use a Business Letter Format?

So, when should you use a business letter format? There are several situations where organizations employ formal business letter formatting. Here are key examples of when this format is most appropriate:

1. Letters of Reference

When providing a recommendation letter, utilize the business letter format to ensure it captures the employer's attention. A formal business letter conveys more professionalism and makes a stronger impression than a basic email.

2. Employment Verification

For confirming employment status, HR departments typically provide a template for managers to complete. While the letter's main purpose is employment verification, it may include additional relevant information as approved by human resources.

3. Job Offers

Upon extending an employment offer, hiring managers often send written documentation detailing the position along with onboarding instructions and next steps.

4. Academic Acceptance Letters

Universities and colleges traditionally mail formal acceptance letters to incoming students upon admission. These letters typically accompany comprehensive enrollment information packages.

Tips for Writing a Professional Business Letter

While your opening words will vary based on your purpose and relationship with the recipient, these guidelines can help you craft professional business letters:

• Choose Standard Formatting: Always type your letter using a readable font like Times New Roman or Arial in 12-point size to ensure clarity and professionalism.
• Maintain a Professional Tone: While you may use first names and familiar language with close contacts, always keep your tone respectful and professional. Even when addressing concerns, a measured tone increases the likelihood of a positive outcome.
• Match Formality to Your Relationship: Your letter’s formality should reflect how well you know the recipient. Use more formal language with business acquaintances and a slightly more relaxed tone with close contacts to ensure your messages feel genuine.
• Incorporate Personal Pronouns: using “I” and “you” adds warmth to your correspondence. When writing on behalf of an organization, use “we” to demonstrate company backing.
• Write in Active Voice: Beginning your letters with active voice helps create clear, concise communication.
• Verify Recipient Details: Research your recipient’s name through company websites, colleagues, or direct contact. If possible, confirm the gender of unisex names. While generic greetings like “To whom it may concern:” are acceptable, using a personal name creates a stronger connection.
• Double-check Spelling: Accuracy in spelling, especially of names, demonstrates attention to detail and professionalism. Since names often have multiple spelling variations, verify the correct spelling before sending.

Wrapping Up

In the end, mastering the art of writing diverse business letters has become a necessity for precise and professional communication. From an impactful cover letter for a job to a thank you note, each of these formal documents serves different purposes. They are usually used by companies, organizations, or even individuals to communicate with other companies/businesses, customers, clients, or government agencies. 

That makes it essential to write a letter that creates initial impressions and reflects professionalism, as well as effective communication skills. Remember, the tone, style, and format of your business letter influence the decision of the recipient, be it a letter for a job, recommendation, or business collaboration. To help you in this comprehensive guide, we shared a basic template and 5 examples of how to write an effective business letter. Go through them and choose the business letter format that meets your needs and contributes to fostering positive relationships with your clients or businesses.

Frequently Asked Questions (FAQs)

1. How do I start writing a business letter?

The salutation is the first step in starting a business letter. Use a formal greeting like “Dear Mr./Ms. [last name]’ or ‘Dear Sir/Madam’ if you don’t know the recipient’s name. For a more personal touch, use the recipient’s first name if you have a relationship with them.

2. What is the best font for writing a business letter?

For business letters, use font styles like Times New Roman or Arial, along with a font size of 12. These fonts are easy to read and have a professional appearance. 

3. Can I use a template for drafting an effective business letter?

Yes, you can use a template to create a business letter with some basic customization to fit your specific needs. Several software programs, like Microsoft Word, offer customizable templates that you can use initially.