How To Write A Business Reference Letter (With Examples)

Business reference letters are exactly what they sound like: a letter recommending a business. Being asked to write a business reference letter is pretty uncommon, meaning that if you haven’t heard of it, you’re not alone. Letters of this type are generally used by people just starting a business as a way to get off the ground.

The stand rules of business writing still apply, meaning that you should treat it like any other professional writing. If you’ve been asked to write a business reference letter, or are considering asking someone to do so, this article will explain what a business reference letter is and what goes into writing one.

Key Takeaways:

• A business reference letter is also referred to as a letter of recommendation written on behalf of a professional or a business to let other people know that you believe in the quality of their work.

• When writing a reference letter, you can only write a good business reference for an individual or company with whom you had a positive professional relationship.

• It’s important to remain as professional as possible when writing these letters, and not to lie just because they are your friend.

• Include any specific instances of the person’s skills when writing the letter.

What is a business reference letter?

A business reference letter, or business recommendation letter, is just like a reference letter for an employee: it recommends the subject to someone else. In the case of a business reference letter, you’re explaining how the business is professional, has employees with a strong work ethic, and completed the contract to specifications.

These letters can have a couple of different purposes, including:

• Encouraging job candidates to apply for or accept a job. If there is a lot of positive buzz about a business, then they’re more likely to attract top-tier candidates. Having good reference letters on their website or a job board can make people more inclined to work there.

• Highlight the quality of the goods or services provided. This is a way to appeal to customers, potential employees, and investors. If the business is exceptionally good at what it does, it implies you’ll get a good return on investment.

• Attract new customers. Knowing that a business offers high-quality goods and services makes it much more attractive to potential customers. If there are trustworthy references that they can refer to, then they’ll be more inclined to give the business a try.

• Advance the career of the owner. If the owner of the business gets enough recommendations it can help advance their career. Not only can they expand their business, but they might be able to move into a different part of it — or a higher level of business.

How to write a business reference letter

As with all business writing, there’s an expected format for a business reference letter. If you’ve written either a personal or professional reference for someone, then it’s quite similar. A business reference focuses more on the services or goods a business offers than on personal traits — though positive personal traits aren’t off the table.

A business reference letters should include the following sections:

• Your contact information As with all business letters, you want to make sure that you include your name and contact info. Including an address can sometimes be seen as bit old fashioned, but you absolutely want to have your phone number and/or email address, or a social media handle if that’s how you prefer to be contacted.

  In emails, contact information is sometimes put at the bottom of the letter, after your name.

• Date. Putting the date down is a must. It’s important to record when letters like this were written or submitted.

• Recipient’s contact information. If this is an actual letter — even a printed one — then you need to include their contact info. In most cases, letters like this are sent via email, in which case you can omit it. Especially if you know they’re planning to post it on their website or social media page — then they’d just end up removing the address anyway.

• Salutation. You always need to include a salutation. Usually Dear is a safe bet, but if this is someone you know well, you can use a less formal greeting, such as hello.

• Body of the letter. This is where the majority of the information goes. In a business reference, there are certain things you want to include. Such as:

  • How you know the person. This should be a professional relationship, as this is a business letter. If you know them outside of their business, don’t focus on that aspect.

  • What work they did for you. This is important in terms of your recommendation. You want people to know what they did and why they did it well.

  • Your feelings about the work they did. Don’t write a letter of recommendation for someone if you aren’t happy with the work they did for you. It should be a glowing review — and an honest one.

  • Would you hire them again. If you’re writing a business reference, the answer had better be yes. It’s important to be as honest as possible in these letters, so you want to actually be willing to recommend their services to others.

• Offer to speak with them if they have questions In this case, that’ll be whoever your’e recommending the business to. So be sure to be ready to answer questions or discuss the service you received in more detail. It’s not a bad idea to include your preferred contact info here as well.

• Closing If this is a physical letter, be sure to sign it. If it isn’t, then add a closing and type your name. For the closing salutation, it’s best to be fairly formal, using something like Sincerely, or best regards.

Tips for writing an excellent reference letter

While the basics of writing a business reference letter have been covered, there are still some things to keep in mind to make sure your reference letter catches people’s attention. It’s important to be sure that you’re on board with the idea of writing the reference — if you don’t put time and effort into it, it’ll show.

• Do people really conduct reference checks? It’s true, they don’t do it as much as they should. Reference checks are important for any business, but they’re often skipped steps. That said, you still need to be prepared to respond to people if they do call or email.

• Keep it positive. Only point out the good things. If Dave showed up late all the time, it’s better not to mention that and to focus on something he did well. You should also always tell the truth. If you feel you can’t give a good review of someone’s work, their professionalism, and the end results — then you should let them know that you don’t want to write the letter.

• Ask the person first. It’s a good idea to have a brief conversation with the person asking for the reference before you write it, just to get on the same page.

  If it’s going to a specific person, you want to know who, what the scope of the job is, and what they feel would be a good thing to mention to make them stand apart from the competition. If it’s a more generic letter, ask them what they want to highlight. You’re not asking them to write it for you, but a little guidance never hurt.

• Be as professional as possible. This might not be something you do regularly, but a little effort will go a long way to help the person who requested the letter. They think enough of you to ask, so it’s your job to do it right.

• Keep it short. As with most business letters, it shouldn’t be longer than a page. Make sure you say everything you need to concisely so that the recipient will actually read the entire letter.

• Make yourself available. It’s possible that you’ll be contacted by the recipient of the letter to ask for further details. Make sure that you are ready and willing to talk about your recommendation in more detail. Remember that sending this letter — with your contact information — means that you agreed to be contacted.

• Proofread. This is necessary for all times of writing, but in business writing it’s an important aspect of professionalism. Make sure that your letter is free of errors, typos, or grammatical issues.

Business reference letter example

Business Reference Letter Template

[Your Name]
[Your Address]
[Your Phone Number]
[Your Email address]
[Date]

To Whom It May Concern:

It is with great confidence that I am writing to recommend [job title] of [Person you are recommending].

I have been acquainted with [Person you are recommending] for [years worked with] and was happy to hear that he had started his own business doing [job title]. [Include traits and why he will be good at the business.].

[Include specific instances to add credibility to your recommendations. Also include why you are credible to give him a recommendation. This could be a sentence or two depending on qualifications.].

If you have any questions, please feel free to contact me.

Sincerely,

[Your name]

Who to ask for a business reference letter

This article is primarily dedicated to individuals writing business reference letters, but it’s useful to briefly touch on who you can write a business reference letter for. You can only write a good business reference for an individual or company that you’ve had a positive professional relationship with.

This includes:

• Former or current direct supervisors

• Mentors who have experience with your work

• Former professors (for recent graduates)

• Clients you’ve done substantial work for (the main topic of this article)

• Vendors and other businesses your business has interacted with professionally

The more recent your professional contact, the better. Whether you’re trying to convince a hiring manager, recruiter, or potential clients to believe in your business, people like to know what you’ve done lately, as opposed to what you did five years ago.

Plus, it’s pretty hard to write a compelling reference for someone if you barely remember the nature of your relationship. If someone approaches you for a business reference letter, make sure you know precisely what they want out of it so that you can draft a document that speaks directly to their target audience.

How to ask for a business reference

Even if you’re being asked to write a business reference, it’s helpful to know what to expect from your referee. To ask for a business reference, follow these steps:

1. Contact your top choice for referral. It’s common to reach out with a brief phone call or email just to feel out your potential referral’s interest in helping you. A referee should approach their referral as soon as possible, to give that person time to write a stellar reference letter.

2. Explain your needs. As a referee, it’s incumbent on you to basically outline the reference letter. If the reference is for a specific opportunity, the referee should provide all the relevant details (e.g., the job description, their resume, the details of a business proposal, etc.).

   If your referee doesn’t provide these things upfront, request them. You should also learn the less exciting details, like the due date and required page or word count.

3. Put the reference letter in a broader context. The referee should also tell you their larger goals for the letter. For instance, what are your business’s long-term goals, and what skills need to be highlighted to reach those goals?

   They can also fill you in on what aspects of their business they want to be made most plain in the contents of the letter.

4. Thank your reference. Finally, you should always thank your reference for taking the time and energy to help take your business to the next level.

Business reference letter FAQ

1. How long should a business reference letter be?

   A business reference letter should be approximately a page in length. That’s a fairly standard length in most business writing. At least, in terms of referrals, references, and other correspondence of that nature. You want to make sure that the recipient can read it quickly, but that it has enough information to answer their questions.

2. How do you write a good business reference letter?

   A business reference letter should be concise, professional, and positive. It’s also important to follow the standard format, as that’s part of what makes it a business letter. Good business reference letters make ti clear why you’re recommending the business, how to contact you, and what the business offers.

3. What is a business reference letter used for?

   Business reference letters are typically used as a way to get a business off the ground, but they have several different possible applications, including:

   • An established business looking to stand out via positive testimonials.

   • Someone leaving their job but looking for similar work — such as starting their own business.

   • As a way to draw in customers.

   • Bring in new job candidates to a business.

Author

Kristin Kizer

Kristin Kizer is an award-winning writer, television and documentary producer, and content specialist who has worked on a wide variety of written, broadcast, and electronic publications. A former writer/producer for The Discovery Channel, she is now a freelance writer and delighted to be sharing her talents and time with the wonderful Zippia audience.