How to Write an Effective Letter of Intent: Step-by-Step Guide & Real Templates

Look, I remember the first time I had to draft a letter of intent. I was sweating bullets. Was it a contract? Should I sound fancy? Would they laugh at me? Turns out, most people overcomplicate it. After helping over 200 clients with these letters, I've seen what makes them succeed or land in the trash. Let's cut through the confusion.

What Even Is a Letter of Intent, and Why Should You Care?

Think of it as a handshake in writing. You're saying "Hey, I'm serious about this deal/job/project, here's what I'm thinking." It's not legally binding like a contract (usually), but it sets the stage. Last year, a client of mine lost a $50k deal because their LOI was vague – the other party thought they weren't committed. Ouch.

You'll need one for:

• Business acquisitions (that's where I use them most)
• Job promotions or internal transfers
• University applications (especially grad programs)
• Real estate leases or purchases
• Partnership proposals

How This Differs From Cover Letters or Proposals

The Nuts and Bolts: What to Include

A solid LOI has five key sections. Miss one, and it feels incomplete:

Step-by-Step: How to Write a Letter of Intent That Doesn't Get Ignored

Here's my battle-tested process:

Step 1: Reverse-Engineer Their Needs

Before typing a word, ask: What keeps them up at night? For a business seller, it's quick closure. For a hiring manager, it's solving a specific problem. Your LOI should position you as the solution.

Step 2: Draft the Hard Parts First

Write the key terms section immediately. Numbers force clarity. If you can't articulate price/timeline upfront, you're not ready. I draft this in bullet points before anything else.

Step 3: KILL Weak Language

Scan for these red flags:

• "I believe..." → State facts
• "Hopefully..." → Remove entirely
• "Perhaps we could..." → "We will..."

A client's LOI went from 0 to 3 meetings just by replacing "might" with "will."

Step 4: The 24-Hour Test

Write it. Sleep on it. Edit cold. You'll spot:

• Emotional phrasing ("extremely excited")
• Redundant sentences
• Missing specifics

Step 5: The Print-and-Read Trick

Print it. Read it aloud. Stumble on a sentence? Rewrite it. If your eyes glaze over, theirs will too.

Real Templates That Don't Suck

Forget generic "To Whom It May Concern" junk. Here are field-tested frameworks:

Business Acquisition Template

Career Change Template

7 Deadly Sins of Intent Letter Writing (I've Committed 3)

Learning how to write a letter of intent means avoiding pitfalls:

1. Vague timelines: "Q3" isn't enough. Use "September 1-15, 2024"
2. Overpromising: That LOI promising 50% growth in 6 months? Yeah, I wrote that. It backfired.
3. Ignoring contingencies: Forgot "subject to financing"? Prepare for lawsuits.
4. Legalese overdose: "Hereinbefore notwithstanding..." Stop. Write like a human.
5. No call to action: Ended with "Sincerely"? You just missed the point.
6. Typos in names: Called a client "Mr. Johnson" instead of "Dr. Johnson"? Relationship over.
7. PDF-only submission: Always attach an editable .docx. They'll need to redline it.

What Happens After You Hit Send?

Your LOI isn't fire-and-forget. Here's the playbook:

The 48-Hour Rule

If no acknowledgement within two business days, email: "Checking if you received my LOI dated... Need any clarifications?" Don't call first – gives them space to review.

Redlining Etiquette

They'll send back edits. Never argue over Track Changes. Instead:

• Accept non-critical edits (grammar, formatting)
• Comment on substantive changes: "Can we discuss the payment schedule? Here's my concern..."

When Silence Means "No"

If they ghost after two follow-ups, move on. I chased a client for 6 weeks once. Their response? "Oh, we went with someone else." Brutal.

Your Burning Questions About How to Write a Letter of Intent

Should I hire a lawyer to draft this?

For simple job moves or small deals? Probably not. For acquisitions over $250k or complex partnerships? Worth the $500 fee. But lawyers make everything sound like a subpoena. Have them review YOUR draft instead.

How long should it be?

One page for jobs/school applications. Two pages max for business deals. Remember the CEO who tossed my 3-pager? "I don't read novels," he said. Harsh but fair.

Can it backfire?

Absolutely. I once sent an LOI prematurely and tipped off competitors. Another time, a client's LOI accidentally committed them to terms they hated. Pro tip: Add "This LOI is non-binding except for Sections 4 and 5" if needed.

Email or snail mail?

Email with PDF + Word doc attachment. Follow with printed copy via FedEx for big deals. The tactile experience makes it feel official.

Do fonts really matter?

Calibri or Arial. Size 11 or 12. No Comic Sans (yes, I've seen it). One client used Papyrus to "stand out." They stood out... as unprofessional.

How to make mine stand out?

Hand-sign in blue ink. Scan it. Shows extra effort. For physical copies? Use heavyweight paper (24lb+). Feels substantial.

Should I include financials?

Only if required. For acquisitions, attach them separately as "Appendix A." Never paste spreadsheets into the LOI body. Looks chaotic.

The Psychological Game

Here's what no one tells you about how to write a letter of intent: It's 30% facts, 70% psychology.

• Use their language: Mirror terms from their website/proposal
• Anchor numbers: Start with your ideal terms before negotiating
• Show scarcity: "Can hold this offer until Friday" creates urgency

Last month, a client landed their dream merger by adding one line: "We've reserved integration team bandwidth through Q3." The seller signed within hours. Why? It eliminated their biggest fear – operational chaos.

Parting Wisdom

Writing a letter of intent isn't about perfection. It's about clarity. If you remember nothing else:

The best LOI I ever wrote took 45 minutes. Why? I stopped overthinking and just stated the deal. Sometimes we complicate what should be simple. Now go write yours.