Business Letters & Memos: Writing Effective Professional Business Communication

Business Letters

Business letters are letters written in the context of business transactions between individual business personnel or between business organizations. It is essential to familiarize yourself with business letter formats and styles in different business situations and to gain some practice in writing a letter in a given business context. The other formats covering letters of inquiry, request, replies, orders and business reports. Different forms of layout like the indented form, hanging indention, block form, modified block and semi-block are also explained.

Business Letters

A business letter is more formal than a personal letter. It should have a margin of at least one inch on all four edges. It is always written on 8½"x11" (or metric equivalent) unlined stationery. There are six parts to a business letter.

The Heading. This contains the return address (usually two or three lines) with the date on the last line.

Sometimes it may be necessary to include a line after the address and before the date for a phone number, fax number, E-mail address, or something similar.
Often a line is skipped between the address and date. That should always be done if the heading is next to the left margin.
It is not necessary to type the return address if you are using stationery with the return address already imprinted. Always include the date.

The Inside Address. This is the address you are sending your letter to. Make it as complete as possible. Include titles and names if you know them.

This is always on the left margin. If an 8½" x 11" paper is folded in thirds to fit in a standard 9" business envelope, the inside address can appear through the window in the envelope.
An inside address also helps the recipient route the letter properly and can help should the envelope be damaged and the address become unreadable.
Skip a line after the heading before the inside address. Skip another line after the inside address before the greeting.

The Greeting. Also called the salutation. The greeting in a business letter is always formal. It normally begins with the word "Dear" and always includes the person's last name.

It normally has a title. Use a first name only if the title is unclear--for example, you are writing to someone named "Leslie," but do not know whether the person is male or female. For more on the form of titles, see Titles with Names.
The greeting in a business letter always ends in a colon. (You know you are in trouble if you get a letter from a boyfriend or girlfriend and the greeting ends in a colon--it is not going to be friendly.)

The Body. The body is written as text. A business letter is never hand written. Depending on the letter style you choose, paragraphs may be indented. Regardless of format, skip a line between paragraphs.

Skip a line between the greeting and the body. Skip a line between the body and the close.

The Complimentary Close. This short, polite closing ends with a comma. It is either at the left margin or its left edge is in the center, depending on the Business Letter Style that you use. It begins at the same column the heading does.

The block style is becoming more widely used because there is no indenting to bother with in the whole letter.

The Signature Line. Skip two lines (unless you have unusually wide or narrow lines) and type out the name to be signed. This customarily includes a middle initial, but does not have to. Women may indicate how they wish to be addressed by placing Miss, Mrs., Ms. or similar title in parentheses before their name.

The signature line may include a second line for a title, if appropriate. The term "By direction" in the second line means that a superior is authorizing the signer.
The signature should start directly above the first letter of the signature line in the space between the close and the signature line. Use blue or black ink.
Business letters should not contain postscripts.
Some organizations and companies may have formats that vary slightly.

Writing an Effective Business Letter

E-mail may be the quick and convenient way to relay daily business messages, but the printed business letter is still the preferred way to convey important information. A carefully crafted letter presented on attractive letterhead can be a powerful communication tool. To make sure you are writing the most professional and effective letter possible, use the business letter format and template below and follow these basic business letter-writing.

Select a professional letterhead design for your small business - Your business letter is a representation of your company, so you want it to look distinctive and immediately communicate "high quality." For a convenient and economical alternative to using traditional preprinted letterhead, try using our contemporary letterhead and envelope design templates. Simply create a letter within a predesigned color letterhead template and then print your entire piece quickly and beautifully on your Phaser® color printer.

Use a standard business letter format and template - The most widely used format for business letters is "block style," where the text of the entire letter is justified left. The text is single spaced, except for double spaces between paragraphs. Typically, margins are about 1 inch (25.4 mm) on all sides of the document, which the default is setting for most word-processing programs. If you are using Microsoft Word, you can turn to its built-in Letter Wizard for additional formatting assistance (look on the Tools menu).

This business letter format illustrates the specific parts of a business letter:

Business Letter Template Fields:

Date: Use month, day, year format, e.g., March 3, 2025 or 3 March 2025

Sender's Address: It is a good idea to include sender's email and url, if available. Don't include this information if it's already incorporated into the letterhead design. This will allow customers to find your small business more quickly.

Inside Address: Use full name. Mr./Ms. is optional

Salutation: Be sure to use a colon at the end of the name, not a comma as in personal letters

Body Text: State why you are writing. Establish any connection/mutual relationship up front. Outline the solution, providing proof in the way of examples and expert opinions. Group related information into paragraphs

Closing "Call to Action": State what the reader needs to do and what you will do to follow up

Signature Block: Sign your letter in blue or black ink

Enclosures: Use if you have an enclosure

Carbon Copy: Use if you are sending a copy to additional person(s)

Use a professional tone

Save casual, chatty language for email - your printed business letter should be friendly but more professional. As Scott Ober suggests in his book Contemporary Business Communication, "The business writer should strive for an overall tone that is confident, courteous, and sincere; that uses emphasis and subordination appropriately; that contains non-discriminatory language; that stresses the "you" attitude; and that is written at an appropriate level of difficulty." That said, be sure to sound like yourself - you don't want your letter to read as if a machine wrote it.

Write clearly.

State your point early in your letter. To avoid any miscommunications, use straightforward, concise language. Skip the industry jargon and instead choose lively, active words to hold your reader's attention. Organize your information logically: Group related information into separate paragraphs. In a long, information-packed letter, consider organizing information into sections with subheads. You may want to highlight key words to make them "pop" - this technique is possible with most word-processing programs and your color multifunction printer.

Use Color to Emphasize Words in Text

It's easy to put a few words in color to draw attention to them. Just select the type and click the arrow to the right of the Font Color button, choose the color you want, and then click the button. Or, try highlighting a few words in the text. Select the type you want to emphasize, and then click the Highlight button.

Note That: When highlighting parts of a document you intend to print, use a light color such as yellow, light green, or light blue. If you wish to remove the highlighting, select the text and click the Highlight button again.

AutoText automates applying color (or any type style), which would ordinarily take numerous clicks or commands. Say you're creating a report that compares your organization's performance against that of your competitor. Word can automatically color your company's name every time it appears, making those entries easy to locate.

Be persuasive.

Establish a positive relationship with your reader right away. If you have a connection to the reader - you've met before or have a mutual colleague, for example - mention it in your introductory paragraph. Whether you think your reader will agree with the point of your letter or not, it is important to find common ground and build your case from there. Understand your reader well enough to anticipate how he or she will react when reading your letter.

Address his or her needs or wishes, or a specific problem, and then outline your solution. Provide proof in the way of examples and/or expert opinions to back up your point. Make sure to maintain a friendly tone. Conclude your letter with a "call to action." State clearly what your reader needs to do or believe to achieve the desired solution and then state what you, the writer, intend to do next to follow up.

Proofread your letter! All your careful crafting and printing can't cover up spelling or punctuation errors, which leave a lasting negative impression. Now that you've learned the secrets of writing an effective business letter, you're ready to start composing. Good luck!

How to Write a Memo

The basic function of a memo is to solve a specific problem by making the reader aware of specific information. A memo can be written to persuade others to take action or give specific feedback on a particular matter. When written properly, memos can be very effective in connecting the concern or issue of the writer with the best interests of the reader.

Method 1 of 1: Writing Your Own Memo

1. Analyze your audience.

Decide to whom you are writing this memo (the audience) and what the audience’s priorities and concerns are. Establish why this memo would be important to the reader.

2. Write the heading segment.

The heading segment should include to whom the memo is written, who has written the memo, the complete and exact date the memo was written, and the subject matter (what the memo is about).

A sample heading would look like:

To: Name and job title of the recipient
From: Your name and job title
Date: Complete date when the memo was written
Subject: (or RE :) What the memo is about (highlighted in some way)
To: All Staff and Interns
From: Anil Lakhia, Executive Assistant to the President
Date: July 15, 2025
Subject: Dishes in the Sink

Write the heading segment

Always address readers by their correct name; do not use nicknames.
When constructing the heading, be sure to double space between sections and align the text.

3. Write the opening segment.

State the purpose of the memo and identify the purpose in three parts: the context of the problem, the particular assignment, and the purpose of the memo. Identify the exact reason for writing the memo and make it clear to the reader.

If you are having trouble describing what you are doing to solve the problem (the task statement), consider whether you have clarified the situation.
Include only as much information as is needed, while still being convincing that a real problem exists.

To: All Staff and Interns
From: Anil Lakhia, Executive Assistant to the President
Date: July 15, 2025

Subject: Dishes in the Sink

Write the opening segment

4. Include a summary segment.

This segment should provide a brief statement of important suggestions. This will help the reader quickly understand the key points of the memo. The summary can also include links or references to sources that you have used in your research on the issue.

To: All Staff and Interns
From: Anil Lakhia, Executive Assistant to the President
Date: July 15, 2025

Subject: Dishes in the Sink

Include a summary segment

5. Expand in the discussion segment.

In this segment, include all of the details that support your ideas and recommendations for solving the problem. You may also choose to propose future problems that may arise and discuss how your recommendations ensure these problems will not occur (see tips).

To: All Staff and Interns
From: Anil Lakhia, Executive Assistant to the President
Date: July 15, 2025

Subject: Dishes in the Sink

Conversely, studies have shown that when a sink is empty, people are more likely to wash their dishes immediately.

Expand in the discussion segment

Begin the discussion with the information that is most important.
Start with the most general information and move to specific or supporting facts.

6. Finish with a closing segment.

Close the memo with a friendly ending that states what actions you want the reader to take. Consider the ways that the reader can benefit from the information in the memo and how these changes will be advantageous.

To: All Staff and Interns
From: Anil Lakhia, Executive Assistant to the President
Date: July 15, 2025

Subject: Dishes in the Sink

It has come to our attention that there has been a pile of unwashed dishes that accumulates in the sink by the end of each week. It has gotten so bad that washing one’s hands in the kitchen sink becomes an uncomfortable undertaking. Therefore, we are introducing a new policy that mandates that employees wash their dishes as soon as they are done with them, keeping the sink clear for other uses. If you do not have the time to wash your lunch container or coffee mug, leave it by your desk until you are ready to wash it. Even two or three dirty plates will encourage every person thereafter to leave their unwashed, food-stained dishes and silverware in the sink. Conversely, studies have shown that when a sink is empty, people are more likely to wash their dishes immediately.

Thank you for your cooperation!

Best,

Anil Lakhia

Finish with a closing segment

Be sure to consider how the reader will benefit from the desired actions and how you can make those actions easier. You might say, "I will be glad to discuss these recommendations with you later on and follow through on any decisions you make."

7. Close with a call to action.

If there is something you want the reader to do by a particular time, say so.

To: All Staff and Interns

From: Anil Lakhia, Executive Assistant to the President

Date: July 15, 2025

Subject: Dishes in the Sink

If you do not have the time to wash your lunch container or coffee mug, leave it by your desk until you are ready to wash it. Even two or three dirty plates will encourage every person thereafter to leave their unwashed, food-stained dishes and silverware in the sink. Conversely, studies have shown that when a sink is empty, people are more likely to wash their dishes immediately.

Thank you for your cooperation!

Best,

Anil Lakhia

Please clear out all unwashed dishes by 5pm today.

Close with a call to action

8. Review for spelling, grammar, and content errors.

Pay particular attention to names, dates, or numbers. Be consistent in the type of language you use.

Get personal. Use words like "I," "you," and "we." To initiate action, write in active voice.
Be conversational. Write the way you talk and do not be afraid to use contractions.
Don't show off. Avoid scholarly words and technical jargon.
Avoid "smothered" words: Simple root words with fancy endings tacked on. Favorites are "tion," "ance," "ent," "ment," "ize," and "ility." Example: Don't say, "The continuation of our issuance of incentives is dependent upon the prioritization by employees of company objectives." Instead, say, "If you want to keep getting incentives, meet company goals."

Sandeep Ghatuary

Finance & Accounting blogger simplifying complex topics.

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Business Letters & Memos: Writing Effective Professional Business Communication

Business Letters

Business Letters

Writing an Effective Business Letter