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Importance of Project Reports

Importance of Project Reports

If you need a bank loan to start your dream business, a project report is a necessary document.

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?

Project reports are important tools for both project teams and stakeholders. Through these reports, we track the current progress of the project and compare it against the original plan. They can identify risks early on, and take corrective action. Reports estimate all costs of operations and possible profitability of the proposed project.

Here are the points that validate the Importance of the Project Report:
  • Project reports are an important source for managers and stakeholders, to monitor the current progress and measure against the original schedule.
  • It helps to predict the threats and develop proper steps to recover.
  • The report makes it easier to control the cost and budget apart from the budgeted cost.
  • It will be a source of information to respond to success, stagnation, team results, or quality of work.
  • The project report requires completeness and accuracy, ensures coverage of all dimensions of the project, and makes the data more viable.
  • It helps the project manager to deal with potential or upcoming risks during projects.
  • The report increases the amount of visibility into your projects and will give you full insight into how your project is performing 
  • It also helps to avail certain loans and funding from various banks, NBFC, Private Equity, Venture Capital funds, government schemes such as Mundra Loan, and Financial institutions.
  • It helps the entrepreneur to get an exact idea about the initial inputs required for the business.
  • Project Report is an important document for bank loans including a business plan, projected financials, viability study, technical analysis, etc., for availing of the loan.
Who can make it?

Getting a business loan is no longer a nightmare. 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!

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Documents Required for Business Loan

An entity may construct or expand a business unit using a loan. You can use the obtained cash for general company expenses such as purchasing machinery for plants, hiring personnel, renting office space, paying off the mortgage, and more. Thankfully, obtaining a business loan is simple. You can get the money in a few days if you match the eligibility requirements and have the necessary business loan paperwork. You must provide a certain set of supporting papers when requesting for a business loan. Important documents required for business loan: 

  • Application form.
  • Passport size photograph
  • Identity documentation of the applicant
  • Proof of Address for verification
  • Verification of age
  • Financial Records
Document list that can be used for identity verification
  • Passport
  • MPIN (Market Participant Identification Number) card
  • Voter’s ID card
  • Driver’s license
  • PAN card
Document list that can be used for address verification
  • Voter ID
  • Ration card
  • Telephone bill
  • Lease agreement 
  • Power bill
Document list that can be used for age verification
  • PAN card
  • Voter’s ID
  • Passport
Financial records needed for obtaining business loans
  • Bank account statements from the previous six months
  • Income tax returns from the previous two years
  • A chartered accountant’s audited P&L
  • balance sheet from the previous two years

The self-employed sector requires different papers for the professional and non-professional categories.

Documents needed for self employed professionals
  • Identity proof of the applicant (any documents mentioned above can be used)
  • returns of income taxes for at least three years
  • A driver’s license, ration card, passport, or voter ID that serves as proof of residency for the single proprietor
Documents needed for self employed non-professionals
  • Identification documentation for the proprietorship
  • Documents for the last three years’ tax returns, including sales tax.
  • A copy of the most recent three months’ worth of monthly stock and creditors statements
  • Last six months’ value of the primary banker’s bank statements
Recommended Articles

You might also like to read the article on the documents required for obtaining a MUDRA Loan.

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. Our reports are accepted by all public and private sector banks working in India. Click to create your report.

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Business Plan to Start Your Own Company

Anyone can have a great business idea, but turning an idea into a viable business is a game changer. A business plan is a must to start your own company. Writing a formal business plan increases your chances of viability. Plan your business ideas for the future, not just for tomorrow. Excitement, when you’re ready to start your business. First, before setting up the office space, and seeking legal advice, you need to put your thoughts on paper. This will help you to identify the missing points and stay organized and focused.

In fact, there are few types of research you need to perform before you start writing a business plan to start your own company:
  1. Why do you need a business plan?
  2. Who will be the target audience for the business plan?
  • Investors
  • Bankers
  1. What are the opportunities in revenue generation?
  2. Do a market study
  3. Who is your competitor?
  4. What should your business plan comprise?
It’s not about the number of pages you write, your business plan should include:
  1. Executive Summary

What your company is and why it will be successful. Include your mission statement, your product or service, and basic information about your company’s leadership team, employees, and location.

  1. Company Description

This provides information about your company like the problems your business solves, and lists out the consumers, organizations, or businesses your company plans to serve.

  1. Market Research

Analyse what other businesses are doing and what their strengths are. Define your target market and your plans for this specific audience.

  1. Description of products or services

Classify in detail about the product or services, explain the lifecycle of the product, and how it benefits the customer.

  1. Sales and Marketing

Outline the pricing, sales information, how you’ll attract the customers, how exactly the sale will happen and also how to retain the customers

  1. Competitor Analysis

Strengths and weaknesses of your direct and indirect competitors are vital information that should be done simultaneously with identifying your target audience. Demonstrate how you will gain a competitive edge against your competition.

  1. Management Team

Explain how your company will be structured and who will run it. State whether the business is a sole proprietorship, partnership or LLC. Provide background information on all key players involved in the business as well as use an organizational chart to explain who will do what and who is responsible for what.

  1. Financial Plan

Complement your funding request with financial projections. Also, convince the reader that your business is stable and will be a financial success.  Include income statements, balance sheets, and cash flow statements. Specify the amount needed over the next two, three and even five years. On-going business expenses, including salaries, insurance costs, promotional expenses, etc. Also, anticipate the need for additional funding. Break-Even Analysis is one important thing to mention in the financial projection plan.

     9. Appendix

List your documents like licenses, permits, legal documents other contracts etc.

How to get a Business Plan?

With Finline you can create a powerful business plan in ten minutes. That too in your language. All public and private sector banks working in India accept our reports. Click to create your report.

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How to write a Business Plan?

If you are one of the many people thinking about starting a small business. Then having a business plan is one of the first things you should have on your list of things to do. It does not matter if the size of the business you are starting is small or big. Having a plan for your business is considered a blueprint for a successful small business. The hardest part of the business process is to write a business plan. A business plan sprouts from a business idea. Once you have developed an idea of the business, its market trends and growth opportunities, the method of developing a business plan should follow easily.

How to write a business plan to start your own new company?

In this article, let’s see some of the major points to ponder while creating a business plan.

Usually, a traditional business plan consists of the following elements:

  • Executive Summary
  • Company description
  • Market research and analysis
  • Description of products/services
  • Operational Strategy
  • Marketing and sales strategy
  • Financials
Executive Summary

This is the most important and critical part of your plan and will be a short outline of the content of the entire business plan. If you are planning to raise your business plan to venture capitalists, banks, or potential investors, make sure that your executive summary captures their attention and urges them to read on beyond the first page. The executive summary is usually given to potential financial backers, board members, and other interested parties for review. The executive summary should be developed in such a way that it makes the job of reading easier for the responsible person.

What points are to be covered in an executive summary?
  • The vision and mission statements of your company
  • Your product or service and the problems solved by your company
  • A short description of your target market
  • Your purpose in writing a business plan
  • The size, scale, margins, or sales forecasts of your company

If you are a beginner, you might have to rewrite the executive summary several times at the end of the business plan development.

Company description

The company description is simply an overview of your company. This section of your plan should include:

  • The official name of your company
  • Company location
  • Business structure
  • Ownership or management
  • Company background
  • Company description
  • The mission statement of your company
  • Product and market information
  • Goals and objectives of your company
Market research and analysis:

Utilize graphs and charts to highlight the precise market analysis. You need to discuss both present and future trends and mention how your organization will capitalize on those trends. Also, do a competitive analysis and try categorizing your competitors. Once this is done identify the products, strategies, advantages, and disadvantages of your competitors and bring out methods and plans to improve the performance of your company.

SWOT Analysis which includes Strengths, Weaknesses, Opportunities, and Threats can also be performed in this stage. 

Description of products/services

Businesses can take many forms and may deliver either products, services, or a combination of the two. Provide a detailed explanation of the products or services offered through your business.

Operational strategy:

This is the section of your business plan where you explain in detail the goals, objectives, procedures, and timeline of your company. Some of the factors to be included in this section include Cash Flow forecasting, variance report, weekly position report, management settings, executive review, team operating plan, organization structure, delegation of authorities, hiring procedure, employee compensation, profit-based incentive system, performance evaluation, etc.

Marketing and sales strategy

Sales planning is critical to sales success. Return on Time Invested(ROTI) should be the key criteria that every salesperson should consider while evaluating their account base.

Four things to consider while preparing your marketing and sales strategy are to know your:

  • Customers
  • Market
  • Sales performance
  • Target objectives
Financials

The finance section is a very short section that deals only with your break-even point, financial strategies, etc. It will be just a page long. A finance part that is vaguely developed honestly creates a poor impression on the reader. To avoid this it is necessary to create a well-crafted financial plan considering the below-mentioned points.

Balance sheet, cash flow statement, tax impacts, income statement, startup costs, operational costs, cash inflow, and periodic review of your budget versus actual expenses.

So, the final question is do you need a business plan?

Well, the answer is Yes and the following are reasons that showcase its importance:

 We, at Finline will help you with that. Our team will help you create a powerful business plan in ten minutes. That too in your language. All public and private sector banks working in India accept our project report. Click to create your report.

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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:

  1. 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.
  2. Project description: It should explain the project’s nature, purpose, scope etc.
  3. Details of promoters: The details of the promoter’s skills, qualifications and experience should be mentioned.
  4. Details of Employees: Like the promoters, the details of the employee’s skills, qualifications and experience should also be mentioned.
  5. Production plan: This includes the details such as plant and machinery, raw material used and steps in the manufacturing process.
  6. Market analysis: It conducts research about the market to understand the demand for your product and services.
  7. Marketing plan: This provides the details about the marketing and sales strategies of your product/service.
  8. Project cost estimation: It’s the estimated expense that arises at the time of building the project.
  9. Balance sheet: All accounts will be visible on the balance sheet so that the lender can see where the money was spent.
  10. Profit and loss account: It shows whether the company is making a profit or a loss.
  11. Cash flow statement: It allows the lender to understand whether you have the ability to repay the loan.
  12. Loan repayment plan: This section should provide a well-defined plan for repayment of the loan.
  13. Break-Even point evaluations: It shows the point at which the project revenue equals its expenses.
  14. 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!

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