Why do you really need a Project Report?

The world has changed a lot since the idea of a project report was formalized decades ago. Things move much faster now and it’s easier than ever to get a business started. So, it’s rational to think that startups don’t need project reports anymore. After all, you could just dive in and start building a business without spending much time thinking about your goals or how your business is going to work.

However tempting, starting a business without a plan is not a great idea. Why?

It’s not just about funding. Planning is still a critical part of starting a business, but not for the reasons you might think. Most people think that the plan is all about showing it to other people to raise money or get a loan. But, that’s not the real reason planning is so important.
The process is what’s valuable. Writing a project report is important because of the process you’ll go through when you put the plan together. When you plan, you discover what you need to do to start your business and what it’s going to take to be successful. Writing a plan is all about you, and clarifying your business idea for yourself and your business partners.
Get clear and specific about your idea. After all, before you’ll be able to explain your business idea to friends, family, and potential investors, you’ll need to be able to explain your idea to yourself. The value of writing a project report comes from going through the process, not from printing a document.
Reduce your risk. And, spending a little time on planning before starting your business reduces the risk that you’ll lose money and make silly mistakes. Your plan will help you discover if your business can make money and what you need to make it successful. Sure, you could jump right in and start your business without a plan, but it’s much more likely that you’ll waste time, money, and resources—unless you have a plan.

Planning guarantees that you’ll be more successful. Over the years, there have been multiple academic studies of companies that do plan and those that don’t. And, time and time again, the results show that companies that plan are more successful, more likely to get funding, and more likely to achieve their goals.

About Finline!

Finline is an online platform for creating financial reports for getting bank loans and investments. It’s like ‘Canva’ but for financials. If you are an entrepreneur looking for a bank loan, you need to have a well-crafted project report. We, at Finline help you with that. Our team will help you create a powerful business plan in ten minutes. That too in your language. Also, our reports are accepted by all public and private sector banks working in India. Click to create your report.

Project Report for Bank Loan

If you need a bank loan to start your dream business, a project report is a necessary document. Struggling to make one? Don’t worry, you are at the right place!

In this blog, we will discuss about:
1) What is a project report?
2) Why do you need it?
3) How can you prepare a convincing project report?

1) What is a project report?

A project report is a mandatory document that outlines different aspects of the business or startup project. It should contain the project’s details, feasibility, and financial requirements. Here comes the next question, why does someone need this?

2) Why do you need it?

There are several reasons which show project reports as a must. Some of them are listed below:

Project reports will help the bank assess your project’s success rate and can thereby make sure that you can repay the loan.
It will help the bank understand the project’s risks and rewards.
Submitting a decent project report shows the lender that you have done enough homework and is serious about the project. The project report also provides information about your qualifications and experience.

3) How can you prepare a convincing project report?

A strong and convincing project report should contain the following:

Executive summary: An executive summary is a short summary containing the business’s overall status. It should be concise and should provide an overview of the entire project.
Project description: It should explain the project’s nature, purpose, scope etc.
Details of promoters: The details of the promoter’s skills, qualifications and experience should be mentioned.
Details of Employees: Like the promoters, the details of the employee’s skills, qualifications and experience should also be mentioned.
Production plan: This includes the details such as plant and machinery, raw material used and steps in the manufacturing process.
Market analysis: It conducts research about the market to understand the demand for your product and services.
Marketing plan: This provides the details about the marketing and sales strategies of your product/service.
Project cost estimation: It’s the estimated expense that arises at the time of building the project.
Balance sheet: All accounts will be visible on the balance sheet so that the lender can see where the money was spent.
Profit and loss account: It shows whether the company is making a profit or a loss.
Cash flow statement: It allows the lender to understand whether you have the ability to repay the loan.
Loan repayment plan: This section should provide a well-defined plan for repayment of the loan.
Break-Even point evaluations: It shows the point at which the project revenue equals its expenses.
Conclusion: Lastly, Conclude the report by summarizing the key strengths of the project. Make it short and compelling.

About Finline!

Still, having trouble creating one? Let us help you. Our expert team at Finline helps you craft a compelling project report in less than 10 minutes. That too in your language. Our reports are accepted by all public and private sector banks working in India. Click to create your report.

Now there is nothing stopping you from starting your dream business. Begin your journey with Finline right away!