“Let our advance worrying become advance thinking and planning.” ~ Winston Churchill
Project report or business plan is a written statement of what an entrepreneur proposes to take up. It is one kind of course of action about what the entrepreneur hopes to achieve in his business and how is he going to achieve it. An objective without a plan is a dream. This is why the preparation of the project report is very important for an entrepreneur.
The Purposes of Business Reporting
The aim of a business report is to provide critical analysis of how the business is tracking in all areas of the organisation. Business reports are important tools to guide decision-making and to allow business owners and senior managers the opportunity to investigate and solve any identified issues.
Business Reporting is done through the process of compiling and reviewing the information within a specific functional area such as finance, sales, operations, inventory control or any area of the business where performance is monitored and measured. Once information is gathered and reviewed, conclusions can then be drawn and recommendations made. The outcome of the report may explain why an issue has occurred or may identify performance problems and generally will recommend a course of action.
The Importance of Business Reporting
Business reporting provide useful insights for management such as information on spending, profits and growth. Reports will provide important detail that can be used to help develop future forecasts, marketing plans, guide budget planning and improve decision-making. Managers also use business reports to track progress and growth, identify trends or any irregularities that may need further investigation. In addition to helping guide important decisions, business reports help to build an audit trail of business activities including reports that document annual budgets, sales, meetings and planning initiatives.
Business reporting promotes transparency and for many public companies, an annual report is a legal requirement to provide shareholders, the government and others with financial data and ownership information about the business. Additionally, regular reporting throughout the business year enables businesses within the same sector to measure and compare their performances against others.
Anyway, a project report or business plan can shape your business for the following reasons:
- A roadman: The project report is like a road map. It describes the direction the enterprise is going in, what its goals are, where it wants to be, and how it is going to get there.
- Shows the right direction: A project report enables an entrepreneur to know that he is proceeding in the right direction.
- Attract lenders and investors: Through the help of project report, any person can easily know the details, information about any enterprise. Thus, it helps lenders and investors to invest in the right enterprise.
- Financial assistance: A project report or business plan must be submitted to the financial institutions and commercial banks to take a loan from them. On the basis of that report, the financial institutions judge the entrepreneur and his enterprise.
- Tools of control: On the basis of a project report, an entrepreneur can measure and evaluate the performance of his enterprise. It also helps an entrepreneur in taking necessary corrective actions.
- Help in preparing budget: Project report or business plan gives an entrepreneur necessary guidance for preparing a budget for his enterprise.
- Source of information: Project report or business plan acts as a source of information not only for the entrepreneurs but also for the external parties.
- Others: Project report or business plan also helps in taking the right decision, proper coordination, proper utilization of resources, reducing costs and wastages, taking strategies.
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