A project report is a written document that provides details on the overall picture of the proposed business. It gives an account of the project proposal to ascertain the prospects of the proposed plan/activity and contains detailed information relating to the investments involved in the business. A project report is made with the main intent of helping entrepreneurs to obtain loans from banks or financial institutions as it contains data regarding the business operations and plans over time.
A project report shows the feasibility of the proposed project and the probability of achieving profit. Whether a project is feasible in different business aspects like financial, economic, commercial, social, etc. can be ascertained while preparing the report.
Here are some of the steps to write an effective project report:
1. Identify the purpose of starting the business: You need to identify and include the intent of starting the business. Profit is for sure the driving factor for any business person but apart from that, what are the mission, vision, and goals of your company. Any business intent to contribute to society one way or another. A project report must state the objective of the business.
2. Precise project description: A project report must provide a brief description of the project including information such as the structure of the business/organization, ownership details, infrastructural requirements, raw materials, machinery, and equipment, etc. This information should be correct and to the point and not exaggerated.
3. Understand your potential customers and market size: A product or service offered in the market must add value to your customer’s life. For this, one needs to study its target customers and target market pretty well, their preferences, age group, acceptance and adaptability rate, and many other factors should be kept in consideration.
4. Plan your management structure: Companies follow a hierarchy to manage the operations of the business. A well-defined management structure will ensure there are enough human resources with the right skills to accomplish the company’s goals, and its responsibilities should be clearly defined. This helps the company to limit cost by allocating the right number of human resources to an appropriate number of functions and systems.
5. Financial Aspects: The main purpose of any project report is to clarify the capital requirements for starting the business as well as define the financial projections over the years that the company plans to achieve and work accordingly. Make sure that these numbers are practical, approachable, and draws clear sense to the prospect.
6. Project Implementation Timeline: Every proposed business must draw a timeline for the project. It should indicate the time within which the activities involved in establishing the enterprise can be completed. This can also be referred to as an action plan that lays out the tasks you need to complete in the given provisional timeline to accomplish your specified goals.