Why write a business report?

A business report is seen by a number of executives and managers in the business. Business reports aim to convey or communicate information to very busy people in the most efficient, interesting, and straightforward manner. 

What to include:

• Business terminology, concepts, and definitions

• Inclusive language (business owner, not businessman or woman)

• Full sentences that relate back to the scenario

• Headings, sub-headings, and diagrams (where appropriate)

• Use third person (this report will outline… it can be concluded that… it is recommended that…)

• Always aim to be objective (make statements based on facts)

What to avoid:

• Using first person (I, we, you)

• Slang terms and casual language

• Giving your own opinion (I think… I believe…) unless the question specifically asks for it

• Avoid a list of brief points with no explanation

• An executive summary that is too detailed or just rewrites the question

• An overabundance of highlighting

• Not providing recommendations where appropriate

• Not addressing the question

• Using incorrect terms and definitions

• Being subjective (statements based on feelings)

Bill Parcells is the owner of a small butchery, Bill’s Butchery, that employs five people. The business is currently in the growth stage of the business life cycle. Bill wants to expand his business across more suburbs in Sydney, and wants to find out the best way to finance this and whether he will need to adopt a more appropriate legal structure for his business. He has asked you to prepare a business report for his consideration.

In your report, you will need to: describe TWO (2) challenges present in the growth stage of the business life cycle, recommend the sources of finance that could be used to fund the planned expansion, and propose the best legal structure the business could adopt if Bill decides to expand.

Section: Executive Summary

What is it?

This is an introduction to the report. It covers briefly what the report is about, the names of the businesses that might be referred to and usually follows the format and language of the question being answered. Some people prefer to leave space at the beginning of the report, and write the executive summary at the end, once they know what is in the report.

Example

This report has been prepared for Bill Parcells, the owner of a small butchery, who is wishing to expand his business across Sydney while in the growth stage of its life cycle. This report will:

• describe two challenges present in the growth stage of the business life cycle, including (i) cash flow problems due to rapid expansion, and (ii) the need for finance to facilitate the expansion, 

• recommend the sources of finance that could be used to fund the expansion, including those from debt or equity,

• propose the best legal structure that could be adopted with expansion, such as a partnership or private company.

Recommendations:

It is recommended that:

• the business use a combination of debt and equity to fund the proposed expansion, and

• adopt the legal structure of a partnership.

Body

The body of a business report goes through each section of the question and answers it in detail. It is set out using headings and sub-headings. (Use an introductory sentence under the main heading to list the items that will become your further sub-headings).

Include course terminology key words and underline or highlight these.

Always remember to refer back to the scenario throughout your business report to illustrate your understanding of your business knowledge.

Challenges present in the growth stage of the business life cycle

There are many challenges present in the growth stage of the business life cycle. These include cash flow problems due to rapid expansion, and the need for finance to facilitate the expansion.

• Cash flow problems due to rapid expansion

• Finance to facilitate the expansion

Sources of finance

Finance is an important factor in a business’s day-to-day operations, and in order to expand, it is important to determine the best sources to draw this financing from: either debt or equity.

• Debt

• Equity

(Once these have been outlined and reasons in favour for each have been provided, you will need to recommend the most appropriate).

Legal structure proposed for adoption with expansion

It is suggested that Bill’s Butchery consider the legal structure of partnership as it offers…

• Partnership

Conclusion/ Summary, and Recommendations

The conclusion is very similar to the executive summary. While the executive summary tells the reader what will be included in the report (future tense), the conclusion tells the reader what has been included in the report (past tense). The conclusion is usually an overview of main components and any recommendations.

In conclusion, it is evident and important to note that within the growth stage of the business life cycle, cash flow problems due to rapid expansion, and the need for finance to facilitate the expansion both pose challenges. Debt and equity financing both have merit in providing funds for the expansion, and in addressing the cash flow problems, and it is recommended that Bill’s Butchery use a combination of both. A partnership is the best legal structure to adopt, and this is due to…

Source: M. Cimino - HSIE/R.E. Teacher