Page 103 - DMGT310_ENTREPRENEURSHIP_AND_SMALL_BUSINESS_MANAGEMENT

Entrepreneurship and Small Business Management

Notes A project report helps to understand the opportunities, problems and weakness of the business.
It guides the entrepreneur in actually starting up and running the business venture. It helps him
to monitor whether the business is growing as was projected in the business plan or not. It helps
in documenting the cost estimates of the business. It can be used as a handy tool to persuade
investors and financial institution to fund the project. It can help in proper utilization of all the
resources. It can keep the morale of employees, owners and investors up. It can finally lead to a
sustainable development of the organization.

Essentials of a Project Report

Following are the essentials of a project report:
1. The project report should be sequentially arranged.
2. The project report should be exhaustive (covering all the details about the proposed
project).
3. The project report should not be very lengthy and subjective.
4. The project report should logically and objectively explain the projections.
5. The projections should be appropriately be made from two to ten years.

6. The project report should be professionally made to demonstrate that the Promoters
possess entrepreneurial acumen and sound experience.
7. The project report should justify the financial needs and financial projections.

8. The project report should also justify market prospects and demands.
9. The project report should be attractive to the financial agencies and investors.
10. The project report should also have a high aesthetic value.

Steps in Preparing a Project Report

Steps involved in preparing a project report are given below:
I Cover Sheet: Cover sheet is like the cover page of the book. It mentions the name of the
project, address of the headquarters (if any) and name and address of the promoters.
II Table of Contents: Again, the table of contents is like the table of contents of a book; it
guides the person reviewing the project report to the desired section quickly. A good
methodology would be to divide the project report into sections and number or label the
sections like 1, 2, 3 or I, II, III or A, B, C and then divide each section into subsections by
using numerals after the decimal like 1.1, 1.2, 1.3 or I-1, II-2, III-3 or A-a, B-b, C-c. No matter
which method is used for classification, once a method is picked up the entire report
should uniformly adopt the same procedure.
III Executive Summary: Executive summary is the first impression about the business proposal.
As the saying goes, the first impression is the last impression. A careful presentation of
information should be done to attract the attention of the evaluators. It should be in brief
(not more than two or three pages) yet it should have all the factual details about the
project that can improve its marketability. It should briefly describe the company; mention
some financial figures and some salient features of the project. Generating interest in the
minds of the readers is the prime motive of the executive summary.

IV The Business: This will give details about the business concept. It will discuss the objective
of the business, a brief history about the past performance of the company (if it is an old

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