How to Write a Proposal Letter for Any Use Case [+ Templates]

Whether you’re writing a business proposal, project quote, or sales pitch, you’re going to need a top-notch proposal letter.

This letter provides context to the recipient, sets the tone and style for the proposal, and encourages the recipient to review your complete proposal.

But…writing is hard work!

To make things easier, we’ve got a simple 5-step process to help you craft your letter.

Below, you’ll also find 3 unique templates with an example proposal letter for each.

What is a proposal letter?

A proposal letter is designed to entice the recipient to read your proposal in its entirety. It can be formal or informal, and usually covers the problem statement, goals, proposed solution, and next steps. It might also include details about the project budget or timeline.

Cover letters are sent alongside all types of proposals, including:

• Sales proposals

• Business plans

• Business partnership agreements

• RFP responses

• Project or service renewal proposals

• Internal collaboration and project proposals

• Grant proposals

• Research proposals

• Sponsorship proposals

Why you need a proposal letter

Here are important reasons why you shouldn’t skip the letter:

• Set the tone - Your proposal letter will set the stage for the proposal. It can hint at the results the prospective client will receive or it could cover the RFP requirements that were met.

• Provide context - A proposal letter provides context for why the proposal is being sent. This is useful whether the proposal was solicited or unsolicited because you give the reader a reason for being in their inbox.

• Highlight key areas of the proposal - You can use the letter to surface any detail you want, be it a testimonial, average client result, low-price promotion, market opportunity, or whatever will excite your reader the most.

• Encourage the recipient to read the proposal in full - At the end of the day, a great proposal letter should serve as a gateway. It gives enough information to convince the reader to give you their undivided attention and review the entire proposal.

5 steps for writing a proposal letter

Use these 5 simple steps to craft the perfect proposal cover letter.

For best results, you should write your proposal before you write the letter. This way, you’ll have already done your research on the potential project, client, or business idea.

1. Know your goals

Before you start writing, take a step back and really consider what you’re trying to achieve. Are you trying to get the attention of a prospective customer who you know will be a hard sell? Do you need to show the reader that you’ve adhered to strict guidelines that were outlined in a governmental RFP? Or, are you simply giving the person a heads-up that the proposal is ready for review?

Knowing your goals will ensure you make the right decisions in Steps 2, 3, and 4 below.

2. Determine the format and formality level

Next, it’s important to choose the right format and style for your letter.

In this digital world, written or printed proposal letters are very old-fashioned. You’re better off using proposal software, which allows you to store email templates, proposal templates, customize things as needed, automatically notify and remind recipients to sign your proposal, track views, and more.

As for style, make sure to write in your brand voice. The formality of your writing style should also match your industry and the recipient’s expectations.

In most business scenarios, the longer and more complex and more formal your proposal, the longer and more complex and more formal your proposal letter will be too.

3. Start with a template or example

The next step is to find a template or letter example that will help guide your writing process. This is especially helpful if you’re sending a proposal letter for the first time and aren’t sure of exactly what to include.

Below these steps, you’ll find 3 proposal letter templates for different use cases and an example letter for each.

Of course, you can also head over to Google images and search for the exact type of proposal letter you’re writing in order to find tons of examples.

4. Craft the letter

Now it’s time to write!

Most proposal letters should hit on all of these points (in order):

• Greeting for the recipient

• Statement of gratitude or excitement for sharing the proposal

• The client or project problem and goals

• Your proposed solution and key details

• Why your company is a fit to help

• Next steps

• Your signature

As you’re writing, do your best to match the style and tone you’ve chosen, but you can always tweak it to perfection as you edit.

5. Proofread before you send

The proposal letter is your first impression. Get it right, and there’s a good chance the recipient will read your proposal. Get it wrong, and they might never even open your proposal. This is why you shouldn’t rush. Proofread your proposal letter 2 - 3 times, and on different days if your deadline allows.

Now it’s onto the templates and proposal letter examples!

Proposal letter template #1 (Sales pitch)

While there are many different types of proposals, sales pitches are probably the most common type. Account managers or executives send proposals to prospective clients and customers in order to pitch services, software, and other solutions. Use this template to help you craft the perfect letter to go along with your proposal.

Template #1

[Your first and last name]

[Company or organization name]

[Date]

[Recipient's name]

[Recipient's company]

[Hi or Dear (recipient’s first name),]

[Use the first sentence to share your gratitude and or excitement for the opportunity to submit a proposal.]

[Define the potential client’s core problem and goals in one to three sentences.]

[Describe your proposed solution and why you’ve chosen this approach in one to three sentences.]

[Use one sentence to clarify the price of the proposed solution, or if you prefer to keep the price out of the letter, list specific deliverables or timelines instead.]

[In one to two sentences, describe why your company is the best fit for implementing the solution or how you’ve completed similar projects.]

[Tell the prospective client the next steps to take, such as reading and signing the proposal.]

[Your sign-off and signature]

Example #1

Jane Doe

Ace Software

Hi Alex,

Thank you for the opportunity to share this proposal with you.

Your small but mighty marketing team is struggling to release content quickly, given their limited capacity. Things are getting stuck in the review column for too long, and classic project management software means that your team is constantly searching for assets, copying and pasting content, and failing to meet campaign deadlines.

Ace Software can help you achieve your goal of hitting your campaign targets and drastically improving your team’s productivity.

I recommend our Premium subscription and our Platinum implementation add-on.

With a one-time setup fee of $5,000 and an annual fee of $4,000, your team will be able to produce and release content more quickly—as if you had hired two marketing assistants.

Ace Software has supercharged 320 content teams, delivering an average ROI of 600%.

Please read through the proposal and sign off when you’re ready. Or, let me know if you have any questions on what’s included.

We look forward to working with you!

Jane Doe

Account Executive

Ace Software

Proposal letter template #2 (Project quote)

When submitting a proposal or quote for a large project, you’ll likely need to take a more formal approach with your proposal letter. This template and example are perfect if you’re responding to an RFP for a government agency or other organization.

Template #2

[Your first and last name]

[Company or organization name]

[Date]

[Recipient's name]

[Recipient's company]

[Hi or Dear (recipient’s first and last name,)]

[In the first paragraph, clarify why you are submitting a proposal and to whom. Typically you will mention the entity that sent out an RFP and the title, topic, or number of the RFP.]

[Describe the core contents and requirements of the RFP in three to five sentences.]

[Describe the scope of services outlined in your proposal in three to five sentences.]

[Offer the proposed project price and timeline in one to two sentences.]

[Clarify who the recipient should contact for questions or requests for proposal revisions.]

[Your sign-off and signature]

Example #2

Jane Doe

Ace Construction

July 13, 2023

Alex Ross, Senior Civil Engineer

Anywhere, California

Dear Mr. Alex Ross,

Thank you for the opportunity to submit this proposal. Ace Construction is responding to the RFP for playground and park construction for Sunny Park requested by the City of Anywhere, California.

The Sunny Park RFP requests submissions from contractors experienced in park construction, playground design and construction, hardscaping, and landscaping. The RFP requires an active CSLB license and compliance with the allotted budget.

Our proposal is fully compliant with all aspects of the Sunny Park RFP. We are proposing the construction of three shaded picnic areas, two playgrounds for children of different ages (12 months to 4 years and 5 to 12 years), a playing field for a variety of informal family sports, hardscaping with locally-sourced materials, and landscaping featuring drought-tolerant plants.

The estimated project price for all of the design and construction outlined in our proposal is $900,000, and we expect to deliver the completed project in three phases so that new park features are available for public use as soon as possible.

Should you have any questions about the contents of this proposal, please contact me directly.

Thank you for your consideration,

Jane Doe

Business Operations Manager, Ace Construction

(555) 555-1234

Proposal letter template #3 (Business partnership)

When you’re writing a letter to present a proposal for a business partnership, the level of formality will depend a lot on the person or entity you’re pitching to, and how well you know them. Whether formal or informal, the following template will help you cover your bases.

Keep in mind that this template can be easily modified to fit internal project proposals and business plans.

Template #3

[Your first and last full name]

[Company or organization name]

[Date]

[Recipient's name]

[Recipient's company]

[Hi or Dear (recipient’s first and last name,)]

[Kickstart your proposal letter with a one-sentence description of why you’re excited about the potential of working with the other person or why you think they’ll be interested in the opportunity.]

[Describe the market opportunity, target audience, and competitive gap analysis in two to four sentences.]

[Describe how your company will compete to win in two to four sentences.]

[Describe the type of partnership you’re proposing in one sentence (general partnership, limited partnership, etc.)]

[Clarify the next steps you’d like the recipient to take, such as reading and signing the proposal or scheduling a call with you to go over any questions.]

[Your sign-off and signature]

Example #3

Jane Doe

Ace Startup

Hi Alex,

I’m so excited to send you this business partnership proposal, because I know this industry is right up your alley. With your experience and my audience, I believe we’ll be able to do great things together.

The direct-to-consumer vegan frozen foods market is full of expensive products that cost $8 to $11 per serving and are consistently described as “not filling” in reviews. It’s no wonder: 400 calories isn’t enough for dinner.

Based on my research, I believe that we can satisfy the needs (and stomachs) of busy vegans by providing quick-cook products with recipe options that can be easily combined with fresh ingredients on hand. This will reduce our packaging sizes, costs, and shipping costs, while making it easy for consumers to adjust the recipes to their own tastes and typical portion sizes.

I propose a general partnership, where we invest equal amounts of time and money, and share the potential gains or losses equally as well.

Please review this proposal in full, and let’s schedule a time next week to go over all of the details.

Best,

Jane Doe

Write with your unique brand voice and the appropriate formality. Encourage the recipient to read the proposal and clarify the next steps you want them to take. Get these things right, and you’ll close that proposal in no time.