Proposal Letter Template

In the business world, being able to communicate your ideas effectively is a crucial skill, especially when selling an idea. It is the difference between getting funding for your project and getting your proposal rejected. A well-written proposal letter can attract potential clients and investors, convincing them to work with you. Here is everything you need to know to create an effective proposal letter template.

What Is a Proposal Letter?

A proposal letter is a formal document that presents a business idea to potential clients, investors, lenders, or suppliers. The goal is to convince them to invest in your project and provide you with funding or raw materials to achieve your goal.

What Is a Proposal Letter Template?

A proposal letter template is a guiding document you can use to model a business proposal. It contains the prerequisite format and language of an effective proposal, allowing you to input the details of your project rather than write your proposal from scratch.

When to Use the Proposal Letters

Proposal letters have a wide reach, often being used by businesses, startups, students, government agencies, and more. You can use this document to apply for a loan, request funding for a project, bid for a client job, suggest a new project to your manager, apply for a government grant, and more.

How to Write a Proposal Letter

The content of your proposal letter will depend on why you are writing it. For instance, a proposal letter for a bank loan will contain a different language than a marketing proposal. That said, the steps for writing this letter are pretty much the same across the board. To create a proposal, you should:

1. Step 1: Provide Preliminary Details

Start by indicating your name, company name, and contact information. Use the subject line to establish what the proposal is about so the reader knows what they are reading from the get-go. In the first paragraph, mention any previous meetings you have had about the project. This will help provide context and establish a connection with the recipient.

2. Step 2: Indicate the Purpose of the Proposal

In the second paragraph, give the reader insight into your proposal. What is it about? What are your goals? The best approach here is to establish an existing problem and explain how you plan to fix it. Include specific figures and research to show the long-term results of your project.

3. Step 3: Sell Yourself

What makes you the best person to undertake this project? In the next paragraph, establish your unique knowledge of the problem and your ability to solve it. You can showcase any skills you have that are relevant to the project or mention previous similar projects you have completed successfully.

4. Step 4: Discuss Funding

Funding is the central theme of a proposal letter. If you are writing to a bank, you need to convince them to give you a loan. Similarly, you need to convince investors to fund your business, managers to back your project, clients to pay for your product, and so on. Therefore, the next section of your letter should set an estimated budget for the proposal. Break down how you plan to use the money and how your approach will produce profits for both parties.

5. Step 5: Request a Follow-Up

In the last paragraph, express your anticipation and urge the recipient to contact you if they wish to move forward with the proposal. You can also set a time and date for when you will contact them for a follow-up.

6. Step 6: Close the Letter

Finally, thank the recipient for their time and close with your name and signature.

Proposal Letter Template

[Your Name]

[Company Name, Where Applicable]

[Your Address]

[Contact Information]


[Recipient’s Name]

[Company Name]

[Recipient’s Address]

Re: Proposal for [Purpose of Proposal]

Dear [Mr./Mrs./Ms. Recipient’s Last Name],

I am writing on behalf of [company name] regarding [mention purpose of the proposal]. Following a meeting on [date], we have come up with a proposal for your review.

According to your inquiry, [establish the recipient’s pain point]. Our proposal will [provide a solution]. Our approach will include the following steps:

  • [Plan of Action #1]
  • [Plan of Action #2]
  • [Plan of Action #3]

With our strategy, we project a [profit/sales increase/growth rate/etc.] of [provide numbers] within [period]. The estimated budget for this project is between [amount] and [amount]. We can adjust this figure as we proceed, should the need arise.

Please get in touch with us at [email address] if you wish to move forward with this proposal. You can also contact us at [contact information] if you have any questions regarding this matter.

Thank you for your continued trust and support.


[Your Name]

[Your Signature]

Proposal Letter Example

Grace Butler

ABC Marketing

100 Gold Street

Phoenix, AZ 39029

January 8, 2030

Jane Rudolph

ITX Company

232 Yale Road

Phoenix, AZ 09300

Re: Proposal for Marketing Program for New Product

Dear Ms. Rudolph,

I am writing on behalf of ABC Marketing regarding our previous discussion on developing a marketing approach for your new product. We are grateful for the opportunity to work with you on yet another project. Following a meeting on January 7, 2030, we have come up with a proposal for your review.

You mentioned that your new product, the Solar Lantern, is a solar-powered lamp. Your current marketing approach has been unable to deliver the product to a younger demographic, which makes up a key market. By packaging it as a fun accessory for the savvy camper, we plan to make the Solar Lantern more attractive to young buyers. Our approach includes the following steps:

  • Relaunch the Solar Lantern as the Green Lantern to draw in the sci-fi crowd.
  • Brand and advertise the product as a camping necessity.
  • Create an ad campaign with a modern, nature-enthusiast theme.
  • Hire a prominent adventure YouTuber as the brand ambassador.
  • Model the Green Lantern mascot and create a social media following for them.
  • Send targeted emails to users who search for “camping gear” online.
  • Create an online store for the product

With this marketing strategy, we project an increase in sales of about 60% within the first year. The estimated budget for this project is between $30,000 and $45,000. This figure can be adjusted following further discussions about your budget and needs.

Please contact us at [email protected] if you wish to move forward with this proposal. You can also email or call us if you have any concerns or questions regarding this matter.

Thank you for your continued partnership and support. We look forward to helping you grow your brand awareness and reach new and greater markets.

Best wishes.


Sarah Johnson


Why are proposal letters important?

Proposal letters come in handy in business, government, and personal ventures when you need a third party’s financial help to achieve your goals. A well-written proposal letter can increase your chances of getting the right backing to accomplish your objectives or complete a project.

What makes a good proposal letter?

A good proposal letter identifies your goals, the type of assistance you need from the reader, and a plan of action for your project. It should tell the reader what you want and how you plan to use it.

Final Thoughts

Understanding how to write a good proposal letter will open many professional doors for your career. As you prepare your proposal letter template, try to avoid extreme tones like desperate or aloof. Don’t make it sound like the reader is obligated to accept your proposal but don’t downplay the importance of your project either. Aim to be direct, professional, and convincing.

Authored by:
DocFormats Staff Author
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