Business writing | How to write a great business letter

By Anton Kelly

If you are interested in this topic, take a look at our University of Cape Town Business Writing and Legal Documents course.

Despite all the electronic media readily available to use in delivering communication, business letters are still a popular and dependable way of disseminating formal information. Writing a business letter, rather than speaking on a cell phone, shows that the message being delivered is important and provides a record of the communication for future reference should the need arise. For this and other reasons, the business letter is still considered to be the primary means of communication in the business world. With acknowledgment to Terri Grant and Rea Borcherd's Communicating at Work we outline a process that will enable you to write a great business letter.

Step 1: Visual appearance
It is said that the visual appearance of a business letter accounts for 25 per cent of the impact it will have on its recipient. This is the reason why businesses spend a top dollar on the design of their logos, letterheads and choices of paper. If you have any say in these choices keep your recipients in mind. If you don't, do your best to make the letter look as professional as possible through its formatting.

Step 2: Compliance with Regulations    
Business stationery has to comply with the legal requirements set out in the Companies Act. According to the Companies Act a business's letterhead must provide the following information:

• the name of the company;
• the address of its registered office; and
• the names of the members of the board of directors.

The reason for this is so that the sender of the message can be identified and the board of directors held responsible if necessary.

Step 3: Structure and Format
Generally a business letter follows the following format:

1. Company Letterhead: Must comply with Companies Act as stated above.
2. Date: This is essential for reference purposes.
3. Inside address: The name and postal address of the recipient.
4. Salutation: "Dear …" - rather use the person's name than "Sir" or "Madam".
5. Subject line: A concise and informative subject line gives the recipient a clear indication of the content of the letter.
6. Opening paragraph: Identify the purpose of your letter and give the recipient an overview of your message.
7. Body of the letter: Readability aids such as numbering and headings should be used to focus your main points. Short paragraphs and simple language should be used where possible.
8. Concluding paragraph: Specify what action you require from the recipient and generate goodwill.
9. Close: Sign neatly above your name and state your position in your company.
   

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