What Is a Business Memorandum?

A business memorandum, or business memo for short, is one of the formal documents used to communicate information to different audiences in an organization. And these documents are often used when sudden things to announce must happen instead of a long detailed report. Whether the memo is presented in a hard or soft copy, what matters the most is that the important bits of information to share are present in the document.

According to Kean University, there are four main types of memos—information memo, problem-solving memo, persuasion memo, and internal memo propopsal.

Why Is a Business Memorandum Important?

You might be wondering why there is a need to create a business memorandum when business letters exist too. And you should know that there are many reasons that prove just how essential a business memo can be, and these are a few major highlights:

Fast Alternative to Distribute Information

A business memo can talk about any professional business matter. And the crucial points will be broken down in a form of an executive summary using the memorandum. You can quickly spread information using the memorandum since it is summarized yet direct to the point. Hence, it is much safer to use business memoranda when sudden or urgent details must be communicated to your employees and audiences.

Pays Attention to Problems

Another feature of a business memorandum is how it aims to pay attention to problems. There could be topics about a price increase, data breach, or policy change. For issues that need immediate help, identifying the problem in a problem statement always comes first. That way, everyone who is part of an organization is wholly aware of the problem quickly. And by sharing about those issues, you can gather recommendations from the organization members on how to mitigate them.

Persuades Readers for Solutions

Identifying the problem is not enough because a business memorandum can also persuade anyone concerned in business to determine potential solutions and follow those solutions. A business memo can outline your company’s action plan on how to solve the problem. And the best part is it will be enumerated shortly rather than explaining a solution in really long paragraphs. But to compel company members means you should know how to connect with them until they observe the appropriate procedures according to plan.

Covers a Range of Topics

You can talk about anything essential in a business memo. Examples include an upcoming event plan, business meeting, marketing proposal, student assignment request, new technology announcement, internal accounting budget, real estate proposal outline, or even an official closing statement. No matter what the important subject is, a business memo can be used for various purposes. And that alone proves just how crucial the data inside such memos are.

The Basic Parts of a Business Memorandum

A business memorandum can cover an array of subjects so you would not know what to expect as to what the announcement or information is about. However, you can expect that there is a standard format in terms of how the memo is made. In this section, learn about the significant parts that make a business memorandum.

To: The business memorandum should clearly state all the names of those who are expected to receive the document. And the “To” section answers that question by writing the complete name of each receiver, job title, and even a contact list. And the names are often arranged in alphabetical order, by department, or according to rank.From: Same as how you wrote the recipients in the “To” section, don’t forget to list the writer/s of the memorandum from the name, title, and other identification details. Nonetheless, this segment of the business memorandum confirms who the sender/s is/are.Date: A business memo is still formal so you have to write the exact date of when it was written. Be sure to write the complete date from the month, day, to the year you wrote it. Don’t simply use numbers for the months or abbreviations for the dates. And the schedule written here confirms whether a memo is new or old.Subject: The subject marks the title or the main gist of your business memorandum. So what is the memo wholly about? Write the subject clearly by keeping it concise yet descriptive. In other words, readers should already have an idea of what the main message is about just upon reading the title.CC: Often used in emails, the CC or carbon copy marks the list of recipients who should also have their own copies of the business memorandum, even though the instructions or details inside the memo need not be followed by them. An example is when you want to announce new instructions to employees that would concern customers. Hence, you CC the customer list even though the instructions are for the employees. That is because the customers may be concerned about what’s new in an organization.Body: The heart of your business memo would be the body. The body consists of various parts, depending on what will be tackled in your business memorandum. Some examples may even have one up to three paragraphs in the body. But, be sure you know what set of details must be shared. And a tip is to organize your content using bullet points or numbered lists. For long memos, be sure to divide the data into clauses or sections.Introduction: For more in-depth instructions on what your memo’s body contains, you can start with the introductory statement. The introduction mentions the general thought or problem to give attention to. A short greeting may suffice but it works best to stick to the purpose which is to convey messages quickly and effectively.Abstract: You can expound on your introduction further with the abstract. This part mentions the business memorandum’s point and be sure to set the proper tone right from the start. Simply state why you are writing in the first place, followed by research, statements from fact sheets, and other insightful information relating to the subject.Argument: An extra section can be used to insert arguments. This part gives a thorough explanation of why those facts or details in the abstract were mentioned. Prove why they are relevant or important so that the set of instructions you give out next will be respected by readers. That way, people won’t have to question why they need to follow the set of tasks or commands written in the business memo.Conclusion: Lastly, summarize the whole thought and end the business memorandum with a closing statement. Remember that memos need not have a complimentary close and signature line. Call-to-action statements are the appropriate way to end business memos. End with a request for action so readers know what to do next.

What Are the Types of Memos?

Kean University taught us that there are four main types of memos. These are the information memoranda, problem-solving memoranda, persuasion memoranda, and internal memorandum proposals. So what exactly are they? Here is an in-depth look at what each memo type means:

Information Memo

Like information sheets, the information memorandum is meant to share data. You may use it to request certain assistance or deliver business information shortly. And the common format for information memos is to write the main thought in the first paragraph, explain the details in the second, and insert the call to action in the third paragraph.

Problem-Solving Memo

The problem-solving memoranda are used to share specific action plans on how to fix a problem or improve a bad situation. This form of a memo focuses a lot on implementing solutions rather than simply delivering facts. The format is to write the problem statement in the first paragraph, analyze the issue in the second, write a recommendation in the third, and don’t forget to balance your details, such as mentioning both the advantages and disadvantages of each recommendation.

Persuasion Memo

A persuasion memorandum aims to inspire or encourage whoever reads the document to follow the commands stipulated inside. If problem-solving memos are the answer sheets towards what solutions are worth doing, then persuasion memos focus more on how to make those solutions or actions happen. Start the memo with the main point, follow the next paragraph with an introduction of the idea, then mention the benefits of the thought, and finally highlight the steps to handle along with the call to action.

Internal Memo Proposal

An internal memo proposal is when suggestions or recommendations are written to the head department or top management. Begin writing the reason for the suggestion. The second paragraph talks about the setting and the author’s proposal. Then, state the advantages in the third paragraph. The disadvantages would be in the fourth paragraph. And lastly, add a call-to-action statement in the last paragraph.

How to Create a Business Memorandum Shortly

A business memorandum is not that difficult to make, especially when you already learned so much about it from the previous sections discussed. Now for the real deal, apply what you learned and create the business memo itself by following these four easy steps:

Step 1: Optimize a Sample Business Memorandum

The easiest way to learn how to write a business memo is to use sample business memorandum templates for reference. You will have loads of samples to choose from such as business memos for students, employees, accounting, technology, and more. Also, you can just edit a template rather than create a memo from scratch because each template is editable and printable. Download and edit a template now!

Step 2: Figure Out the Type of Business Memo to Use

From the four main types of business memos discussed earlier, which one would you like to focus on? Remember that in writing a business memorandum, don’t write in the same layout or content every single time, especially when the data inside would differ depending on the subject or type of memo to use. The key is to set goals and stick to your statement of purpose so you won’t lose track of what to jot down in your document.

Step 3: Insert the Basic Elements of a Memo

From the “To” section, “From” section, down to the conclusion, be sure you have all the significant elements of a business memorandum covered in your document. Those are what’s responsible to complete your document as a memo in the first place. But, you may include more provisions and clauses too, but only relevant details of your topic.

Step 4: Keep the Details Clear, Short, and Complete

Conduct an evaluation of your whole memo and check if the details are clearly explained. Also, check if you did not only write the complete details but also wrote them comprehensively. If you think some words can be simplified or shortened, then do it. Short but straight-to-the-point messages would be highly appreciated compared to lengthy sentences with too many flowery words. Only submit the business memorandum to the recipients when you are done fact-checking your work.


What is another name for a memorandum?

A memorandum can be referred to as a reminder or simply a memo.

Do memos have signatures?

Unlike how most formal letters are written, memos do not have a complimentary close and a signature. For some memos, only the author’s initials and branding are used but never the signature.

What are the most notable advantages of a memo?

Memos are notably known to be beneficial because of being quick to make, a convenient tool for communication, a cheap option, and a written document used for recordkeeping.

Memos are more than just making business documents look official. A business memo keeps everyone on the loop when business concerns must be shared in a company. And since you already learned the memo’s meaning, importance, elements, types, and steps on how to make one, you are more than ready to produce as many business memoranda as you want. So make every announcement count using sample business memorandum templates here on Sample.net!