The document discusses the key elements and structure of an effective business letter. It outlines the typical sections of a business letter which include the letter heading, sender's reference number, date, inside address, salutation, subject heading, body, subscription/complimentary close, and signature. The body of the letter usually contains an opening paragraph, multiple paragraphs of information, and a closing paragraph. Following correct format and structure is important for business letters to be clear, concise, and easily readable.

2. A business letter is a letter from one company to another, or between such organizations and their
customers, clients, or other external parties.
For example to request direct information or action from another party, to order supplies from a
supplier, to point out a mistake by the letter's recipient, to reply directly to a request, to apologize for
a wrong, or to convey goodwill. A business letter is sometimes useful because it produces a
permanent written record, and may be taken more seriously by the recipient than other forms of
communication.

3. Business letters are formal medium for exchange of information. It is a good tool for procurement of
information from parties involved in business regarding project developments that are mutually
beneficial in the long run. Companies also use them for dispensing information to their customers.
They send them to their regular and prospective customers to inform about the launches of new
service or a product. Public companies send them to shareholders at the end of financial year to inform
about the dividends or change in investment strategies.

4. Companies operating inthe B2B segment can tap intonew sources for expandingtheir business.Businessletter can be an effective toolin writing
businessproposals.In case of B2C companies, these formaldocuments can be used to expandconsumer base. It can be a goodmarketing technique
for companies operatingin the e-commerce segment that have a solid databaseof not only their customers, butalsopeople who browse through
different products ontheir websites.

5. Informationexchanged throughletters can be preserved
permanently and used as reference when need arise.Therefore,
making business decisionsbecomes easier.
Business letter is an acceptabledocument inthe eye of law.It
can be stored and produced asdocumentary proof.

6. Business letter acts as formal agreementbetweenbuyer
and seller.For example, anorder letter contains name of
items, price,andquantity, time of delivery andmode of
payment. All these are regardedas the conditions of an
agreementbetweenbuyer and seller.
Business letters, likeinquiry letter,circular letter,order
acknowledgmentletter, adjustment grant letter, etc help
to increasegoodwill ofa business with the customers.

7. Communicatingwith people holding a high position in an
organizationis not alwayspossible using other mediums.
Using a business letter overcomesthis impediment.Letter
addressedto the concernedperson can be a convenient
option
Sometimesinformationthat needs to be relayed to clients
and employeeshas to be confidential.Also, there are
delicateand unpleasant matters that cannot be delivered
directlybut requires immediateattention can be delivered
via business letters.

8. 1) Letter Heading or Sender's Name and Address: The first and foremost part of the letter is the
HEADING that contains the name and address of the sender firm. The name of the firm is usually
written or printed in bold capital letters followed by the nature of business.
(2) Sender's Reference Number – After the letter heading there is a mention of reference number to
the sender of the letter. It represents the number of file or folder where the copy of letter sent out has
been kept in records. The reference number can be written/typed/printed in the following ways:
Ref. No. _________
(On left-hand side of upper portion of paper)

9. Layout of a business letter
3) Date – It represents the date when the letter is addressedby the sender. The date is writtenbelow the reference number or is writtenon the upper
right hand corner of the paper.
The idealway of writingthe date ina businessletter is nth MonthYear. (E.g. 9th February 2020)
4) Inside Address – Inside Address represents the name and address of the personto whom the letter is writtenor addressed.It is written after the
reference number and the date in a business letter and shouldcontainthe fullname andaddress of the addressee – person or firm, number of
buildingor plot,name of street, road, name of town and city withits pin code number.

10. 5) Salutation – The next part after inside address is salutation. It can be describe as token of respect
shown in business letter to the reader. The customary form of writing salutation in a business letter is
‘DEAR SIRS' when we address company or firm and ‘DEAR SIR' when we address a letter by the
person's name or designation
When it is addressed to lady we prefer to write ‘Madam' and when it is addressed to group of ladies we
prefer the salutation by ‘Mesdames'. If we address the letter to honorable dignitary or V.I.P or Highest
Authority, then we may write ‘Sir' as salutation to the letter. The salutation should be written on the left
hand margin below the inside address and after leaving two-lines space.

11. (7) Body of a Letter – The body of a letter refers to collection of lines or paragraphs of information
included in a business letter. The body of letter comprises of the following facts:
(a) Opening sentences – The
opening sentences consists of
few words in the beginning of a
letter and they are of great
importance to both sender and
receiver of the letter. The opening
sentences are different for
different kinds of letters
depending upon the subject-
matter of the business letter.
(b) Paragraphs – The rest of the
information is divided into
suitable and convenient
paragraphs and each paragraph
should have close link with each
other. The paragraphs should be
brief, concise and should be in
continuation to the subject
matter.
(c) Closing sentences – The
business letter is closed with a
suitable and fitting closing
sentence and consists of a
closing suggestion from sender's
side about future course of
action. It should be impressive,
congenial and friendly

12. 6) Subject Heading – It is referred to giving short title given to the subject-matter of a business letter.
For example – we can have subject heading as “Supply of goods" or “Placing an order" as subject
heading if we prefers to supply goods or place an order to business firm or company. The subject
heading is generally written after the salutation in a business letter.

13. (8) Subscription or Complimentary Close – The ideal business letter should be closed with suitable
complimentary words like “Yours Faithfully". The other customary words used are “Yours Truly" or
“Yours Sincerely" etc. the words “truly" or “affectionately" are used for personal and friendly letters
while “Yours Sincerely" is used for demi-official (personal cum official) letters. The subscription or
complimentary close is written at the end of the letter. It can be written either on right hand corner or on
lower left hand corner of the page depending upon the style used in writing a business letter. The
subscription is accompanied with the name of a company or firm and can be written or addressed as:
Yours faithfully
(For XYZ Co.)

15. It should directly state the purpose of the sender in as
few words as possible. With all the paper work in the
office, people tend to put aside those letters which will
take them more than a few minutes to read.
1 CONCISE
Conviction is essential in order to make the recipient
of the letter believe that the sender is willing and
sincere in his desire to do business with the former, or
that he is firm in his resolve to carry out the contents
of the letter.
3 CONVINCING
a warm and friendly business letter produces better
results than a stilted, pompous or antagonistic one.
2 CORDIALITY
When you are writing for a specific purpose. State it in
simple and familiar words. Do not use highly technical
or pompous words. Start your letter by stating your
objective for writing.
4 CLARITY

16. due to the fact that big companies receive
numerous letters, not to mention application
letters, the big bosses sometimes just scan the
contents of the letter. They don't always read
letters thoroughly. Hence, it is absolutely
necessary for business writers to observe
correct format, correct grammar, correct
spelling and correct punctuation for easy
reading.
5 COMPLETENESS
A correct business letter is one which is
typewritten or computer-encoded on a plain,
white bond paper measuring 8 1/2 x 11 inches
with 1 inch margin on all sides. Observe
symmetry when writing the contents: the whole
body should neither be too high or too low as to
exceed the 1 inch margin.
6 CORRECTNESS

17. Aside from checking your grammar, your
letter must also stay focused and
coherent on one subject.
7 COHERENT
These seven C's must alwaysgo together when writinga business letter and none shouldbe neglected or overlookedif we wishto convey to the
reader thatwe mean business.

18. Thank you