Writing an effective business letter is an important skill for every manager and business owner. In this brief overview we will examine the five main steps in creating an effective business letter. With this knowledge you can quickly amend and personalize  business letters.

Main Steps:

· Identify your aims

· Establish the facts

· Know the recipient of the letter

· Create sample Copy

· Decide on Physical layout of letter.

Identify your Aims:
Clearly establish what you want to achieve from the letter- whether it is to win back a dissatisfied customer or to reprimand an employee. Whatever the aim, create your letter from these goals.

Establish the facts:
Make sure you have the relevant accurate facts available. For a late payer, this might include relevant invoices, complaint forms, talks with your sales department and any previous correspondence from the customer.

Know the recipient of the letter:
Write in the language of your recipient. Try to put yourself in the position of the recipient. Read it from his point of view. Is the letter clear or open to misinterpretation.

If you know the recipient, use this knowledge to phrase the letter to generate your desired response.

Create a sample Copy:
Having established your aims, amassed the relevant facts with a conscious view of the recipient- write down the main points of your letter.

Decide on Physical layout of letter.
The physical appearance of a letter consists of the paper and the envelope.

The first thing a recipient sees is the envelope. It is essential that it is of suitable quality with the name and address spelt correctly. Quality envelopes and paper suggest a professional company.

It is wise to make sure the envelope matches the size of the paper. While you will use 81/2 x 11 inches(A4 size) sized paper for the majority of letters - a 4 x 6 inches(A5) can be used for specific shorter letters. But insist that correctly sized envelopes are used for this A5 size paper, allowing you maintain and convey an coordinated image.

Technical layout of letter:
The following elements will constitute the formal outlay.

· Letterhead
· Name and address
· Date

· Reference

· Salutation

· Subject matter

· Communication

· Signature

· Enclosures

Letterhead:
This will include your company's name, address, telephone number, fax number and email address. Include your web address if available. Other information may be required depending on the legal status of your business formation. Contact your legal adviser for exact details.

Name and address:
Always include the recipient's name, address and postal code. Add job title if appropriate. Double check that you have the correct spelling of the recipient 's name .

Date:
Always date your letters. Never abbreviate January to Jan. 31.

Reference:
These are optional. They are a good idea if you have a large volume of correspondence. These days modern word processors made this an easy task to complete and maintain.

Salutations:
The type of salutation depends on your relationship with the recipient. Always try to personalize the  letter thus avoiding the dear sir/madam situation.

Subject matter:
Again this is optional, but its inclusion can help the recipient in dealing successfully with the aims of your letter. Normally the subject sentence is preceded with the word Re: It should be placed one line below the greeting.

Communication:
This will contain a number of paragraphs, each paragraph dealing with one point and one point only.

Signature:
The signature should be clear and legible-showing you are interested in the letter and consequently the recipient. Your signature should also be followed underneath by a typed version of your name and your job title.

Enclosures:
If you include other material in the letter, put 'Enclosure', 'Enc', or ' Encs ', as appropriate, two lines below the last entry.