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What are the Objectives of Project Report for a Business

A project report can be considered as a reflection of the company’s business. The company’s successful projects act as a catalyst for the growth of the business; therefore, it becomes essential for the businesses to prepare the project report in a manner that can attract the best investors for the project. However, it is essential for the businesses to understand the Objectives of the Project Report to avoid any confusion in the preparation of the same.

This article discusses the Objectives of the Project Report to help businesses prepare a well-defined project report which can cater to the growth of the business.

What is a Project Report?

A project report can be defined as a written document which contains information about the proposed business. A project report provides a blueprint of the steps that a company intends and plans to undertake for the fulfilment of the proposed project. 

What are the Features of a Project Report

A project report contains the following features –

• It provides a clear depiction of the goals and objectives of the project.
• It provides information about the resources required for the project.
• It denotes the standard timeline for the initiation and completion of the project.
• It explains the desired goals and standards that can be achieved after the completion of the project.
• It enumerates the various involved in the proposed project to ensure the identification of the same at the earliest and avoid any hindrance during the project.

Classification of the Objectives of Project Report for a Business

The Objectives of the Project Report can be classified as follows – 

Retentive Objective 

The retentive objectives focus on analysing the current resources available with the business and formulating a plan for the retention of the resources for the present with an aim to preserve and enhance the future.

Acquisitive Objective 

This Objective of Project Report focuses on acquiring the project’s resources from outside sources such as investors and financial institutions who can help the business in financing the project’s operations.

Economic Objective

The economic objective helps to analyse the profitability of the projects undertaken by the business to access the financial position of the business. More successful projects depict a successful position of the business and vice-versa.  

Social Objective 

This objective focuses on the project’s impact on society, which can help the business determine and fulfil its Corporate Social Responsibility.

What are the Objectives of a Project Report for a Business?

The objectives of the project report are – 

Attract the Best Investment Plan 

A project Report provides a detailed overview of the project, such as the objectives and vision of the project, and the resources and risks involved, which can help the investor assess the investment’s profitability and help the business attract the best investment plan for the project.

Obtain the Approval of the Project 

A project report is often prepared with the objective of obtaining approval of the proposed project from the concerned government departments, authorities or district industries centres, to name a few. Here it becomes important for the businesses to mention the contribution of the project towards the development of society and reflect that the business can successfully comply with the essential compliance requirement. 

Track the Status of the Project 

A project report helps to track the current status of the project. It enables the business owner to access the deviations in the project as well as its similarity with the originally proposed project. Identifying such deviations helps businesses bridge the gap between the current status and the final objective and output of the project.

Provide Insights on the Project 

A project report helps to provide the project’s insights, which helps to avoid any miscommunications or confusion between the business owner and the investor. 

Identification of Risks 

A project report enables the investor as well as the business owner to identify the potential risks in the business that can affect the productivity of the project. The identification of risk helps in devising the solutions at the earliest. 

Management of Costs 

The project reports provide information about the estimated cost of the project and the cost incurred on the daily operations of the project, which includes the machinery, raw material or any other resources depending upon the type of the project. This helps to keep a check on the costs and manage the costs effectively.

Obtain Financial Assistance 

One of the major Objectives of the Project Report is to obtain financial assistance in the form of funds from the funding institutions like banks or NBFC^[1]. The project report helps the financial institutions access the project’s profitability and the business’s credibility to make an informed decision about finding the particular project.

Prove the profitability and credibility of the Project 

Another objective of Project Report is to prove the profitability and credibility of project to the stakeholders and the market. A well-drafted and well-defined project report portray a good image of the business in the market which can help to prove the profitability and credibility of the project as well as the business and enhance the goodwill of the business.

Conclusion 

The above discussion helps to conclude that a project report plays a vital role in projects of the business, which affects the reputation and growth of the business. Due to this, the businesses must focus on the preparation of an effective and impressive project report for which the businesses must be well aware of the Objectives of a Project Report. It is advisable to consult a professional with experience in preparing a project report. 

Read our Article: Importance of Project Report for your Business Idea