What is the Project Report?
Before starting any business venture, some preparation is needed. When an idea comes to mind, the first step is to prepare its project report.
The Project Report is an important document that is prepared primarily for starting and running a project. This project report contains information on all aspects of economic, technical, financial, managerial and production. The project report enables the entrepreneur to know the inputs related to the business and also helps him to get loans from banks or financial institutions.
In a project report almost everything related to business like detailed information of land and building, manufacturing capacity of the plant every year, manufacturing process, list of machines and equipment with their prices, raw material requirement, staff ie manpower requirement, marketing cost, Electricity, water, etc. all types of expenses are included.
How to prepare it?
A project report can be prepared by yourself or with the help of an expert. The project report is essential for a variety of government approvals and bank loans for starting a business.
Another major benefit of the project report is that it helps to have a clear understanding of the project’s success, profitability, and capital expenditure.
For those who are planning to start a project, there are various ways to prepare a project report.
The completeness of a proper project report needs to be explained thoroughly and comprehensively with the following components:
Introduction to the Desired project:
The following should be explained in the Introduction.
- The product/service you choose
- Use of that product in your area or country
- Future demand and interest for that product in your chosen area
- A brief description showing the storage and demand of the product
- Reason for product selection
- Information on whether the product is an imported alternative or exportable
- Potential for commercial success.
Information about Entrepreneurs
- Personal information, name, address, age, family background, etc. of the entrepreneur.
- Educational Qualification of the entrepreneur
- Other relevant information, such as previous work experience, specific training or skills,
Importance of Market Survey
The market survey is an important part of the project report. It is imperative to study the detailed market potential of the product the entrepreneur intends to produce. Thereby validating the need and reason for the commencement of the production of the product.
This must be included
- Potential competitors for the same product
- Include essential machinery, raw material suppliers, vendors, customers, future needs, etc.
- It can be represented as a chart or table to reveal the identity of the project
- Having letters or contract documents from prospective customers, suppliers of equipment and raw materials, etc. will help to increase the credibility of the report.
Draft of the structure of the venture
1) Purpose structure of the company: Proprietorship, Partnerships, Private Limited Company, etc.
2) Reasons for choosing a particular area
3) Factory Building / Shed Details… Information on Rent, Ready to Use and Own Property
4) Details of the total area development plan
5) Details of the electrification of the factory
6) Plan of plant
7) Estimated cost of space and building