The Importance of Business Reports for Entrepreneurs Business reports provide useful insights for management such as information on spending, profits and growth. Reports will provide important detail that can be used to help develop future forecasts, marketing plans, guide budget planning and improve decision-making.
On this page, we explain the importance of business reports for entrepreneurs in business. All the successful businesses survive through utilising various forms of reports.
- Â Business reports can range from informal half-page reports to formal 100 plus page financial forecasts.
- Written reports may be presented orally to an individual or to a group, or electronically on a computer screen.
- Reports can be delivered and presented electronically as portable digital format (pdf) documents or as electronic presentations, using software programmers like PowerPoint.
- Written information is impersonal because people cannot see or hear each other and cannot provide immediate feedback.
- Most forms of business communication include email, announcements, memos, faxes, letters, newsletters, reports, proposals, manuals, presentations, and reviews.
Two Types of Reports
- Informational reports: Reports that present data without analysis or recommendations and their primary function is to provide information.
- Analytical reports: Analytical reports are reports that provide data and conclusions, and are analytical because the presenter also supplies recommendations.
The Importance of Business Reports for Entrepreneurs
The importance of business reports for an entrepreneur cannot be over-emphasised. The importance of business reports can be explained by focusing on various forms of reports in a business, that can make an entrepreneur more successful:
- Market analysis reports: important for knowing what, how, when and why marketing and advertisement is crucial.
- Trend analysis reports: important to reprioritise certain business services based on what is going to trend (or currently trending). Trend analysis report is important for an entrepreneur to identify growth opportunities to enable businesses to build market share ahead of competitors.
- Financial analysis reports: highlights the financial strengths and weaknesses of the business. Also essential for in communicating the financial health of the company to investors.
- Operational reports: Operational reporting is the act of detailing a company’s day-to-day operations. Usually, the report has visuals that show operations workflow.
- Performance reports: important to know how the overall business is performing as compared to previous years.
- Inventory stock report: important to know the movement of stock from the warehouse to the clients (which ones are moving faster and which ones are moving slower)