How to Write a Business Report

Present the idea. This type of report is a justification/proposal report. Such reports may be used to propose something to management or a decision-maker within the company. Typically, it consists of two parts: a summary and the content. The summary highlights your proposal, while the content (main body) delves into the benefits, costs, risks, and other relevant factors.

• For example, if you want to suggest equipping your department with a 3D printer, to convince management to approve the purchase, you would need to write a justification/proposal report to formally request it.

Present the risks associated with a specific opportunity. An investigation report helps assess the level of risk related to a particular course of action. This type of report is extremely useful for assisting a company in forecasting potential outcomes. It consists of an introduction, investigation content, and a conclusion. The introduction emphasizes the issue at hand, while the investigation content discusses the factual elements and the findings of the investigation. The conclusion summarizes the issue at hand.

• For example, if pharmaceutical company X is considering a partnership with pharmaceutical company Y, but there are concerns about Y's financial history, X might conduct an investigation and produce an investigation report to discuss Y’s financial data and its director's background.

Present information on compliance with a governing authority. This is a compliance report, which helps a company demonstrate its accountability. It serves to prove compliance with laws, regulations, and proper spending to the governing body (such as city, provincial, or national authorities). The report includes an introduction, report content, and conclusion. The introduction provides an overview of the key elements of the report. The content outlines the data, events, and other information the regulatory body needs to know. The conclusion summarizes the report.

• For example, Nestle may need to show its board that it has complied with the local policies and laws over the years. To do so, they would prepare an annual compliance report to transparently outline their activities during the year.

Present the feasibility of a proposed idea or project. A feasibility report is used to determine whether an idea is practical and achievable. This report should follow a two-part structure: a summary and report content. The content outlines the benefits, potential issues, costs, and other factors of the proposed idea. A company might use a feasibility report to explore questions like:

• Can this project be completed within budget?
• Will this project be profitable?
• Can this project be completed within the allocated timeframe?

Present the findings of an investigative study. An investigative research report presents the research conducted on a particular issue or challenge. It is typically an in-depth examination of a specific matter, and thus includes sections such as: summary, introduction, research methods, findings, conclusion, and recommendations. Relevant research should also be referenced in the report.

• For example, a company might conduct a company-wide study to determine whether smoking should be banned in employee lounges. The person carrying out the study would create an investigative research report.

Assist the company in improving policies, products, or operational processes through continuous monitoring and evaluation. Created at regular intervals, such as weekly, monthly, or quarterly, a periodic report can thoroughly review the effectiveness, profitability, losses, or any other specific criteria within the given timeframe.

• For example, a pharmaceutical sales representative might prepare a monthly summary of their sales calls.

Report on a specific situation. In contrast to reports based on fixed timeframes, a specific situation requires a status report. The situation could be as simple as information gathered from a seminar or as complex as a report on how to respond to a natural disaster. This report includes an introduction, content, and a conclusion. The introduction identifies the event and outlines what will be covered in the report. The conclusion highlights the necessary commitments or actions for the given situation.

• For instance, after a major storm, a government body may need to prepare a status report.

Present solutions to a problem or situation. A comparative report evaluates several possible solutions to a given situation. Based on the findings, the writer will recommend a specific course of action. It typically consists of three sections: introduction, content, and conclusion. The introduction states the purpose of the report. The middle section discusses the situation or problem alongside feasible solutions/options. The conclusion reveals the best solution or alternative.

• For example, if ABC car manufacturing company is considering building a factory in Asia, the report might narrow down the options to three countries. It will then conclude which of these three locations is the best for establishing the factory.

Define your report's goals and format. Ask yourself what you want to achieve with the report. Based on the desired outcome, choose the appropriate report type from the list above.

• Regardless of the answer, ensure that your objective is clear and concise. If the goal is unclear, the report will only confuse the reader and may affect its credibility.
• For example, if your goal is to secure a larger advertising budget for your department, the report should focus on the current budget and demonstrate how a larger budget could be used effectively.

Identify your target audience. Your audience may include both external parties (those not working within your company) or internal stakeholders. Consider their familiarity with the subject matter and think about how they will use the information presented in the report.

• Remember, regardless of your audience, no conclusion is more persuasive than the potential financial benefits for the company or client.
• For example, if you want to implement a job-sharing program in your department and identify your audience as the HR director, CEO, and managing director, consider their existing level of interest in the program. Their current attitude will shape the tone of the report. If the company has never considered such a program before, the report will need to be strategic and informative. On the other hand, if the company has already considered such programs, the report should focus more on persuasive arguments rather than purely informational content.

Identify the learning objectives. The most challenging aspect is not the writing itself, but rather drawing conclusions and gathering the necessary data to support those conclusions. This requires a range of skills, including data collection and market analysis. What do you and, later, the management team need to know in order to make an informed decision on the subject at hand?

Gather relevant data for the report. It’s important that the data you collect is well-researched. If not, the report may lack credibility. The type of report you write will also influence how you collect data. Ensure that the data you select is concise and supports the report's arguments.

• Internal data can often be gathered quickly. For example, sales figures can be easily obtained from the sales department with a single call. In other words, you can quickly get the data and incorporate it into your report.
• External data may also be stored internally. If another department has collected customer analysis data, ask to access it. You don’t need to conduct the research yourself. While this may vary across different businesses, typically, a business report writer doesn’t need to carry out primary research.
• If you’re writing an explanatory/proposal report, you must research all the benefits of your proposed idea and compile those findings into the report.

Organize and write the report. The structure and writing style of the report depend on its purpose. For example, a compliance report will have a different layout than a feasibility report. Once you have a clear idea of how to arrange the report, you can begin developing its content.

• Break the relevant data into separate sections. A business report cannot be a jumble of numerous pieces of data and information. Organizing the data into distinct sections is key to a successful business report. For instance, you might separate sales data from customer analysis data and give them their own headings.
• Arrange the report with appropriate headings, making sure they are easily skimmable like an independent study while still supporting the report’s primary objective.
• Because some sections might depend on analysis or data from other sections, you can often work on individual parts while awaiting analysis results.

Draw conclusions and make specific recommendations. The conclusions should be clear and based on a careful review of the data presented in the report. If applicable, provide a clear course of action based on those conclusions.

• Every objective should include concrete, measurable actions. Write out any changes in job descriptions, schedules, or costs required to implement the new plan. Each statement should outline the new methods that will help achieve the goal/solution outlined in the report.

Write the project summary. The project summary should appear at the beginning of the report, but it should be the last part you write. This summary presents the research findings and conclusions, providing a brief overview of what will be presented in the full report should the reader choose to continue. It serves as the trailer of a movie or the abstract of an academic paper.

• The project summary (also known as the Executive Summary) is called so because it is often the only part a busy board member will read. Keep it concise—no more than 200-300 words. The rest of the report can be reviewed more thoroughly if they wish to know more.

Utilize visual graphics for the data when necessary. In certain instances, presenting quantitative data through tables or graphs can be very beneficial. Use colors in your presentation, as they grab more attention and help differentiate information. Whenever possible, use bullet points, numbers, or frame data to make it easier to read. This way, you will separate the data from the rest of the report and highlight its importance.

• Generally, visual effects are a great way to make business reports more engaging when the text and figures themselves can be relatively dry. But don’t overdo it; only use them when appropriate and necessary.
• A page filled entirely with text and lacking tables or figures may cause reader fatigue. Be sure to frame the content there. Information boxes can also summarize key points effectively.

Reference your sources when necessary. Depending on the type of research being conducted, you may need to explain your information sources. The purpose of the bibliography or references section in a business report is to provide a source for others to explore further or locate the data if needed.

• Use the appropriate citation format in your report, depending on your business sector.

Review it twice. Spelling or grammatical mistakes can make the reader think that you didn't put enough effort into the report and can undermine the credibility of your research results. Additionally, ensure that the information is presented clearly and concisely.

• For example, avoid overusing fancy words or writing overly long sentences.
• Avoid using slang.
• If both the report and the reader are closely related to a specific industry, you may use jargon or technical terms. But be cautious not to overuse them.
• Generally, business reports are written in the passive voice, and this is one of the few instances where passive voice is preferable.
• You may often overlook mistakes when rereading your work due to familiarity from the writing process. Consider having someone else in the office, who also wants the report to succeed, read through it. Be open to the feedback received. It’s better to have a colleague point out the errors than your superior. Review each comment and rewrite the report.

Create a table of contents. Format the business report as formally as possible, and create a table of contents for easy tracking and quick reading. Include all important sections, especially the management summary and conclusion.

Design a cover for your business report. The best way to finalize a thorough and well-researched report is by designing an appropriate cover. You can use file folders, binders, or good-quality paper. The key point here is that the business report needs to be eye-catching, visually appealing, and enough to spark the reader's interest.

• This also applies to any tables, charts, or graphs included in the report.