Format of Circular for Effective Business Communication

Written by: Kaushik Jethva

Last Updated: May 25, 2023

circular for business meetings
Circular for business meetings

A circular letter, also known as a circular, plays a vital role in business communication. It is a written document used to inform a large group of people about important information, updates, or changes within an organization. Circular letters can be internal, targeting employees, or external, targeting customers, clients, or other stakeholders.

This blog will discuss the position circular letter format, write circular letter samples, and the significance of the format of circular letters in business communication. It will also highlight the differences between internal and external circular letters and provide examples and tips for writing effective circulars.

1 Importance of Circular Letter in Business Communication

In the realm of business communication, circular letters play an important role in spreading information, promoting new policies or new rules out, announcing changes, and soliciting feedback. Circulars are a time-saving and efficient way to communicate with a large number of readers simultaneously, as opposed to sending individual messages or organizing meetings. For instance, a new company may use a circular letter to inform people about its products and services or to invite them to an opening event. Similarly, an organization may send out a circular to announce a new policy or rule that all the employees need to follow.

2 Types of Circular Letters

Circular letters can be broadly categorized into two types: internal circular letters and external circular letters.

Internal Circular Letters

These are used for internal communication within an organization. They are typically addressed to all employees and may be posted on a notice board or sent through email. Examples of internal circular letters include announcing a company-wide meeting, introducing a new rule, or for example, sharing details about new, more efficient equipment.

External Circular Letters

These are directed toward customers, clients, or other stakeholders outside the organization. Examples of external circular letters include announcing a change in the company plan business address or introducing a new product or service. External circulars often begin with a salutation like “Dear Valued Customers” or “Dear Customer.”

3 Circular Letter Format

A well-structured circular letter format is essential for effective communication. The following format guidelines will ensure that your circular letter message conveys the relevant information to your targeted audience in a clear and concise manner:

Heading: The heading should include the person or organization’s name, logo (if applicable), and date.

Inside Address: For internal circular letters, this signature section can be omitted. For external circulars, include the name and address of the recipient (e.g., “Dear Valued Customers” or “Dear Customer“).

Subject Line: Clearly state the purpose of the circular in a few words (e.g., “New Office Address” or “Introduction of New Company Policies“).

Body: The body of the circular should provide all the details related to the subject. Use short paragraphs, bullet points, or numbered lists for easy readability. Make sure to cover all the relevant information, including the purpose, context, and any necessary data.

Closing: End the circular with a polite closing, such as “We hope you will actively participate in our company’s plan” or “We look forward to serving and meeting you at our new premises.

Signature: Include the name, position, and contact information of the person responsible for the circular. In some cases, a company stamp or seal may also be used to sign it.

Distribution List: For internal circular letters, this section may include a list of employees or departments who should receive the circular letter.

4 Circular Letter Sample

To help illustrate the format of a full circular letter sample, here is an external circular letter sample announcing the relocation of a business:

[Company Logo] [Date]

Dear Valued Customers,

Subject: Relocation of Our Office

We are excited to announce that our sales office is relocating to a more spacious and convenient location to serve you better. The new address is [New Address], and we will begin operations at this location on [Date].

Our new premises are equipped with more efficient equipment and offer improved facilities, ensuring an enhanced customer experience. The new location also provides better accessibility and ample parking space for your convenience.

Please note the following important details regarding our move:

Our phone numbers and email addresses remain unchanged. You can continue to reach us at [Phone Number] and [Email Address] for any inquiries or assistance.

All ongoing projects and services will continue without any disruption during the relocation process.

Our old premises at [Old Address] will cease operations on [Date].

We apologize for any inconvenience this relocation may cause and appreciate your understanding as we transition to our new office. We are confident that our new location will enable us to serve you more effectively and provide you with an even higher level of service.

Thank you for your continued support, and we look forward to welcoming you to our new office.


[Your Name] [Your Position] [Your Contact Information]

5 Tips for Writing Circular Letters

circular letter for business
Circular Letter for business

To ensure effective written communication through circular letters, keep the following tips in mind:

  • Know Your Target Audience: Understand the needs and expectations of your targeted audience to ensure that your message is relevant and engaging.
  • Be Clear and Concise: Use simple language and present your information in a well-organized manner. Avoid using jargon or overly technical terms.
  • Use an Appropriate Tone: Maintain a professional tone in your circular letter. For internal circulars, you can adopt a slightly more informal tone to foster a sense of camaraderie among employees.
  • Proofread: Before sending your circular letter, make sure to proofread it for any spelling or grammatical errors. This will help ensure that your message is clear and easy to understand.

6 Wrapping Up

Circular letters play a vital role in business communication by providing a means to inform large groups of people about important updates, changes, or announcements. Understanding the differences between internal and external when sending circulars and letters, as well as following the proper format and guidelines for writing circulars, is essential for ensuring effective communication within and outside an organization. By adhering to these best practices, businesses can foster a culture of transparency, engagement, and trust among their employees, customers, and stakeholders.

Also, if you are looking for ways to communicate specific message or promote a service in precise manner for your business, then check out blog on the science of leaflet writing. We wish you all the best!

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Kaushik Jethva
Written by: Kaushik Jethva author

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Updated: May 25, 2023
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