Preparing a comprehensive and standardized project report is crucial for obtaining financial assistance from banks and financial institutions. A well-structured report not only provides a clear picture of the business proposal but also builds confidence in the project’s viability. Below are the basic, yet essential, guidelines aligned with general banking norms for preparing project reports:
1. Executive Summary
- A concise overview of the project summarizing all key aspects.
- Includes names and backgrounds of the promoters, the business idea, objectives of the project, nature of products or services, and location.
- A summary of financial indicators like total project cost, proposed funding, expected profitability, and repayment plan.
- Acts as a snapshot for the bank to understand the project's value proposition.
2. Background of the Promoter(s)
- Comprehensive personal and professional details of each promoter.
- Educational qualifications, relevant experience, and previous entrepreneurial ventures.
- Information on existing businesses or partnerships.
- Financial standing, asset ownership, and credit history.
- Promoters’ motivation and vision behind initiating the project.
3. Project Details
- Description of the business model and core activity.
- Detailed product or service description and unique selling points.
- Explanation of the production or delivery process and technology adopted.
- Location details and operational infrastructure.
4. Market Analysis
- Industry overview and trends.
- Demand-supply dynamics and target customer profile.
- SWOT analysis and competition landscape.
- Marketing strategy, distribution channels, and sales forecast.
5. Technical Feasibility
- Machinery and equipment requirements with sourcing details.
- Raw material availability and inventory planning.
- Utility needs like electricity and water.
- Skilled labor availability and training plans.
6. Organizational Structure
- Management hierarchy and ownership pattern.
- Staffing plan and key personnel details.
- HR policies, training, and retention strategies.
7. Implementation Schedule
- Timeline with key phases from planning to commissioning.
- Milestone chart and Gantt tracker if possible.
- Strategies to manage potential delays.
8. Cost of the Project
- Breakup of land, building, machinery, and preliminary costs.
- Contingency provisions and taxes included.
- Working capital estimation and setup expenses.
9. Means of Finance
- Funding mix: promoter equity, bank term loans, and other sources.
- Subsidies, government schemes, or grants planned.
- Details of security or collateral offered for loans.
10. Financial Projections
- 5-year projections of P&L, balance sheet, and cash flow.
- Break-even analysis and repayment schedule.
- Sensitivity analysis for different scenarios.
11. Risk Analysis and Mitigation
- Identification of business, financial, and operational risks.
- Legal and compliance risks with proposed mitigations.
- Strategies like insurance, partnerships, and contingency planning.
12. Annexures
- Land ownership documents, equipment quotes, and legal clearances.
- Resumes of promoters and agreements (MOUs, leases, etc.).
- Photos, maps, feasibility reports, and other relevant materials.
Note: Banks expect the report to be logically organized, professionally presented, and factually accurate. It should follow proper formatting standards, use relevant headings, and be free from inconsistencies. The inclusion of charts, graphs, and visual aids is encouraged to enhance understanding and credibility. Data should be sourced from authentic publications and updated references.
A well-prepared project report not only helps in securing finance but also serves as a blueprint for executing the project successfully.