Once the entrepreneur decides to start an industrial unit, he has to prepare a feasibility report about the project. He has to prepare a self contained project or the scheme of the project. Small Industries Service Institute (S.I.S.I.) can very well help him in this respect. Financial assistance, selection of raw material and machinery required for the profit. One can take help of such organisations.
The following important points should be included in the project reports:

·        The name of the manufacturing organisation.
·        Introductory information.
·        Detailed description about the product.

MARKETING

·        Who are the main customers of the proposed product?
·        What arrangements are likely to be made for selling the product?
·        Competitive elements in the market.


Requirements of Manufacturing Process

  • Production capacity of the unit.

  • Capital expenditure required (for example – expenditure on land, or rent, machinery, furniture etc.)

  • Expenditure in respect of working capital (To keep the unit working amount of expenditure required monthly, half yearly and yearly)

  • Probable profit per year.

  • Requirement of raw material.

  • Expenditure on electricity, water, fuel etc.

  • Manpower requirements.

  • Other expenses like depreciation, postage, stationery, taxes, transport etc.

  • Total yearly expenses, sales and net profit.

  • Percentage of profit: 1) Percentage of profit to total capital invested. 2) Percentage of profit to total sales.



Other important points which are to be kept in mind while preparing a project report.

  • Expected demand for the product.

  • Other units fulfilling the market demand.

  • Production capacity of the other units.

  • The extent of competition, the proposed product is likely to face in the market.

  • Position of raw material supplies.

  • Position of labour requirement.

  • Possibility of the labour supply at the site.

  • Working capital required.

  • Arrangements for distribution of the produced goods.

  • Registration of unit.

  • Form of organisation.

  • Marketing of the product.