Qualities of a Good Business Letter and Factors in Business Ownership

Qualities of a Good Business Letter:

1. Clarity: Clear thinking and simple expression are the two important virtues of effective writing. A good letter should show its idea directly and clearly. Each sentence should be as simple as possible. The reader should have no difficulty in understanding what the writer means to say.
2. Conciseness: Transmission of maximum information by using minimum words should be the aim of letter-writing. Unnecessary details and roundabout expressions should be avoided. People are busy and they receive a number of letters daily.
3. Completeness: The letter should contain all the essential points a reader is expected to know. For example, a sales letter should include the description of the goods, price, quality, how and where to buy, the date of delivery, discounts etc. If it gives only partial information, it is not a complete letter.
4. Correctness: The correctness demands no error at all in grammar, idiom, spelling, and punctuation. Besides, the information given in the letter must be accurate; otherwise it will shake the confidence of the reader.
5. Courtesy: Courtesy means politeness. It always pays to be courteous in business. It softens the sting of an unpleasant piece of information, creates goodwill and produces a favourable response.
6. Cheerfulness: There should be no negative approach in a letter. It must begin with a positive and optimistic note. The approach should be friendly and convincing.
7. Promptness: Promptness in replying a letter is absolutely necessary. The general practice is to reply a letter the same day it is received. When it is known that a reply to a letter requires time it is necessary to acknowledge the letter received and intimate the probable time required sending full reply.
8. Appropriateness: Appropriateness refers to writing or replying letters keeping in mind the relation and psychology of the reader as well as the need of the occasion. The tone, style and language should be changed according to the occasion.

Factors considered in the selection of type of business ownership:

1. A review of possibilities
2. Capital provision or financing
3. Business organisation
4. Location of the business
5. Management
6. Government policies and facilities

Procedure of exporting goods:

The procedures of exporting goods to foreign countries can be explained step-by-step as following:

1. A letter of enquiry is posted from a foreign firm to receive the info about nature, quality, size, grade, price etc. It may be manual or electronic.
2. All info required by foreign firm is sent to them by the exporter after filling them in a proforma invoice.
3. After making an agreement related to foreign business, an indent order is obtained by the exporter of the delivery of goods which contains all the info about type, grade, size, quality, price, packing, etc.
4. A letter of credit is received from the bank of importers which gives reliable info about the final position of the importer. It is an undertaking or guarantee by the importer bank that the bill of exchange drawn by the exporter will be accepted.
5. It is necessary to receive an export license to export some commodities, especially agricultural products and raw material.

Documents used in foreign trade: indent order, letter of credit, bill of exchange, bill of lading, pro forma invoice, shipping order.