Development of business plans to attract investors. Personal investment plan
About drawing up a personal investment plan and the risks awaiting us all in the most unexpected places and at the most inopportune times.
Invest not in order to preserve the available funds in order to "cheat" inflation, but in order to increase your capital, and to increase it significantly.
The thought of making risky investments, i.e. to invest significant amounts in completely different investment instruments came to me a long time ago, and I have already implemented some of my ideas. What do I call risky investments? Anything beyond my personal space! The current situation in Cyprus (March 2013) once again proves our general vulnerability to the banking service agreement. Taxing the accounts of individuals is certainly strong, and most importantly, why the hu ...? Promises to pay damages also look unlikely, another government will come for this and that ... will reconsider the decision of the previous one !? In this light, all the books about the states of millions by means of the "magic" compound interest are not worth a second of time spent on them and seem to be information that has just messed up the brain. So, you either risk it or not!
After my previous investment experience, I figured out something and made some conclusions for myself:
- Yes, with the advent of the Internet, investments are available for everyone and everyone, you can enter the investment path with a relatively small amount, but profitability is not guaranteed anywhere and to anyone. Risk-to-profit ratio is generally a very relative concept, since an investor can risk and gain / lose, an investor's funds manager can risk his money without formally promising anything!
- It makes no sense to blindly chase profitability - you need to constantly monitor your investments and draw appropriate conclusions.
- Anyone can tell how beautiful and simple everything is, or diametrically opposite, but, nevertheless, without trying it yourself, you will not know - noodlin is not obliged to believe everything! And this I refer not only to investments, tk. "Someone else's experience never teaches anyone anything (Oh" Henry) ".
Therefore, this time I decided not to do business on my knees, but to write my own investment plan. I wrote a plan for this year, however, it also contains points aimed at the future, but the final goals of this plan I will analyze at the end of March 2014. The plan itself with numbers, dates and other calculations, of course, I do not intend to spread, if only later, after its complete implementation. In general, the plan is personal because it is not for general use!
So, the main thing in any plan is to follow the plan clearly and relentlessly! In my investment plan, I have defined and indicated:
1. The total amount of my investments... Based on this amount, I determined between which managers of my funds to distribute it and how much and where to deduct in the following months, I also indicated the minimum expected% of profit. I chose 10 places for attachments:
- Two bank deposits (up to the amount insured by the state) with a monthly withdrawal of accrued interest to other accounts. I will not designate banks, the interest on deposits placed for a year is 10% and 11.5%, respectively. In this case, the amount of expected profit is "sort of" known in advance.
- Seven selected "management companies", each of which I will describe separately, but a little later. In short, these are: vladimirfx.ru, forex-mmcis.com, perfectinvest.co.uk, gamma-ic.com, fx-trend.com, sangroup.biz, landora-investing.com. Regarding fx-trend.com, the principle "always up to $ 1000" (clause 2) I have not applied here - I invest in each specific trader (so far also up to $ 1000). Along with the already well-known traders 7031 (for those who still do not know them, I will write a little later in the Forex section), I decided to invest in newbies. The estimated minimum amount of profit determined by me from these seven management companies is 100% of the amount invested in them.
- Precious metals - for the long term, maybe even descendants !?) Here, no comments yet, if the topic turns out to be worthwhile, I will describe it in this section later.
2. Amounts invested in each individual manager... In each of the seven managers, I invest a certain amount (always up to $ 1000) and this does not necessarily happen at one time, i.e. In some cases, I divided the total amount of investments into several months. Then, at the expense of the dividends received, I first return the invested amount, i.e. I get 100% profit - then I consider the possibility of increasing the amount of my investment in this company (clause 4).
3. Monthly withdrawal amounts... Everything is simple here - I withdraw profit as soon as possible. I see no reason to keep the profit received in the manager's system without movement, as well as add it to the amount of investments I have set - at least until it is possible to implement item 4. And in the case of clause 4, the risk may not be justified because replenishment amounts sometimes have an entry threshold, for example, $ 100, and the amount of profit is $ 64.7.
4. The amount of possible replenishment of investments in excess of the amount indicated by me in clause 1.
5. Possible conditions for adding certain places of attachments.
6. The last item, which is filled in as settlement operations are carried out - summing up investment activity.
While so, my partners and referrals, of course, will tell you more - please contact by any of the communication means available to you and me.
- 1 How to draw up an investment business plan
- 2 Business plan of the investment project
- 2.1 What is a business plan for an investment project?
- 2.2 How to draw up an investment business plan?
- 2.3 How do investors evaluate a business plan?
- 3 How to draw up a business plan for an investment project
- 3.1 General requirements for a business plan
- 3.2 Investment project structure
- 4 Business plan investment plan
- 4.1 Investment plan structure
- 4.2 Investment plan on the example of a grocery store
- 4.3 Other examples of the investment section of a business plan
What the article is about:
How to draw up an investment business plan
This part of the document provides information about the company and its type of activity.
The investor analyzes the information and decides whether the upcoming investment will be successful. The section provides initial data on production and financing.
On its basis, conclusions can be drawn about the advantages and disadvantages of the project.
Indicated:
- business goals;
- reasons for starting a business;
- form of organization;
- founders, managers, investors.
Information about the goods produced by the company or services (general information). This can be manufacturing, service, retail, distribution and other areas.
- A product or service of a company.
This is one of the main sections of an investment project business plan. The section includes a full description of the service or product, an analysis of competitive advantages and disadvantages.
Product description:
- manufacturer's name;
- range of services and products (full list);
- cost of sales, projected profit;
- buyers of a service or product;
- use of patents or proprietary rights;
- strategic capabilities of the company;
- product modernization (if necessary), the use of new technologies;
- planning changes in the assortment of goods, cost of sales and other decisions.
Information is needed to assess the investment attractiveness of a particular region. The advantages (disadvantages) of location are also considered by factors such as proximity to raw materials, energy resources, human resources, sales markets, etc.
A thorough assessment of the industry in which the business operates is conducted. It is necessary to talk about the circumvention of competitors, a rapidly growing market and other factors.
The project must be favorable for investment. Competitors, their strengths and weaknesses are determined.
Information about the main suppliers of products is considered.
Basic information of this section:
- the size and nature of competition in the industry;
- a description of the strengths and weaknesses of the main competitors;
- financial position of competitors;
- difficulties in entering and developing entrepreneurship;
- use of innovations;
- legislative regulation;
- economic trends;
- the volume of sales in this industry in recent years;
- information on the number of new firms and their solutions;
- introduction of new products.
- The production cycle of the company.
This section describes the material and technical means for the production of products or the provision of services. For the release of new products, planning and description of the production process is required.
Key elements of the production section:
- manufacturing process: mechanical processes, costs, etc. (copies of contracts are attached);
- methods of quality control of manufactured products;
- purchasing policy of the company;
- raw material costs;
- material suppliers (names, addresses, conditions);
- premises (purchase or rent);
- production capacity (cost, location, area);
- required equipment and costs of purchasing, renting or leasing equipment;
- personnel: quantity, qualification level, skills, salary, organization of personnel training and cost.
- Security of product (service) release
It is necessary to determine whether it is realistic to achieve the planned volume of production and the effectiveness of the location of the enterprise in a particular region. The investor evaluates whether the release of the product will be provided with the used types of raw materials, materials and resources. The vulnerability of the investment project is determined.
The main components of the section: marketing strategy:
- market analysis, forecasting its development for the coming years;
- the purpose of opening an enterprise;
- planned sales volumes;
- marketing campaign strategies;
- the market price of a product or service;
- ways of marketing products;
- ways to increase sales;
- advertising campaign for product promotion;
- marketing planning;
- ways and timing of the marketing campaign.
Management of the company
Investment project business plan
The modern pace of technology development and globalization necessitate a quick and high-quality organization of your own business.
Most often, it is impossible to develop a certain project without appropriate capital investments, and in such cases investments come to the rescue.
In the modern world, investment projects are a kind of guarantor of a significant increase in the competitiveness of an enterprise and its final market value.
An investment project is a set of all documentation that characterizes a specific project from the very beginning (idea) to the final implementation (achievement of business performance indicators defined in the documents). As a rule, such a project covers several stages of implementation - pre-investment, direct investment, operation and liquidation stage.
Most often, investment projects are those that involve the need for capital investments with subsequent income from the business.
Projects vary depending on the target, the speed of the task and the size of the investment.
This can include the creation of new legal entities and their divisions, and the involvement of the necessary technical means, and the release of new goods and services, and the reconstruction of the business.
At the level of a certain production, innovative projects are most often carried out, which are a set of innovations necessary for the continuous improvement of the economic system. With the help of investment projects, you can implement the strategic objectives of production. Note that most of these projects are lengthy and high-risk.
A detailed technical and economic justification for the need for investment is set out in the corresponding plan.
The business plan of an investment project has such a characteristic as the formation and presentation of an idea to investors, which is carefully developed and substantiated in the plan, and in practice is implemented through the necessary capital investments.
What is a business plan for an investment project?
The business plan for the investor is the economic and technical justification for the need for capital investment.
It is mandatory to analyze the effectiveness of the set of measures under consideration, assess the reality and need for investment and resolve problems that arise with the direct implementation and use of the idea.
In other words, a business plan for an investment project is a logical and structured justification for the need and feasibility of pouring investor funds into a particular business.
A business plan is created to motivate the following positions:
- The degree of stability and economic liquidity of the project.
- The possibility of receiving funds, in case of liquidation of the project - their return.
- Proposals for the organization of joint ventures.
- The need for a set of measures provided in the framework of support from government agencies.
- Orientation in the further development of the ongoing project.
A business plan is the most important package of documents both for potential creditors and for the businessman himself. The possibility of implementing the idea and its further economic viability directly depends on drawing up a plan.
How to draw up an investment business plan?
The development of a business plan for an investment project provides for an accurate, complete, competent and structured presentation of all the material that comprehensively characterizes the business model offered to investors. The text must be as light as possible and contain clear and reliable information for investors.
When drawing up a plan, you must be guided by the following principles:
- Reliability and accuracy of information.
- Avoiding incorrect wording, as well as expressions that carry a double, contradictory understanding of the situation.
- Using enough numbers, facts and information to rationale all actions at each step of the project.
- Use of concise and extremely necessary data.
- Avoiding informational data that overemphasizes the advantages and overlooks the existing disadvantages of the project.
Note that only a laconic and well-grounded position, fixed in the created project, can attract potential investors.
If the business plan contains unnecessary details, an array of technical terminology or knowingly false information, the entrepreneur will not be able to receive funds from investors.
The structure of a business plan for an investment project includes two parts: an introduction (a brief summary of the entire business plan, which investors will first of all get acquainted with) and the main part. In turn, the main part provides for the following structure:
- General characteristics of the enterprise and the proposed strategy for its development.
- Description of goods or services. Also, this point of the plan is called "Characteristics of the industry". In this case, the general position of the entire industry on the market and the position of the enterprise (goods and services sold) in particular are considered. At this stage, an already offered product or service is considered, which is compared with a product or service offered after investment.
- Marketing strategy, consideration of potential sales markets. The key points aimed at achieving high sales volumes and optimal ways of bringing goods and services to the consumer are considered in detail;
- Production and organizational plan (may be in separate sections). The existing technical base, which allows the production of products, as well as the existing organizational orderliness at the enterprise are considered.
- Plan of technical and economic implementation of the project. The investors are informed of the plan with the ability to sell the declared amount of products on the basis of the available material base.
- Investment plan.
- Forecasts for further financial and economic activities.
- Reasonable indicators of potential effectiveness. In this case, the entrepreneur justifies the effectiveness of his own idea, which requires investors' funds. In other words, the entrepreneur must convince potential investors that his ideas are indeed capable of making a profit.
- Risk assessments. The main problems that an enterprise may face at any stage of production and sale of products or services are considered.
- Legal plan.
- Data about the person who developed the project.
The stages of the investment project implementation within the framework of the specified structure are also considered. In other words, a business plan contains not only a description of a business idea in sections, but also the possibility of a step-by-step implementation, from development to the actual implementation of the idea in practice.
The business plan of an investment project is official documentation and is carried out in accordance with the requirements set by investors.
How do investors evaluate a business plan?
Evaluation of the effectiveness of the plan is characterized by a set of indicators that represent the ratio of investment to the results obtained. Taking into account the existing types of investors, three types of indicators are considered:
- Financial performance indicators, including actual financial implications for investors.
- Performance indicators for the existing budget, in the case of capital investments from budgets within a city, region or state.
- Indicators of efficiency by economic factors, including all kinds of costs (such that are not the direct interests of investors).
In addition to the above indicators, environmental and social performance indicators can also be considered. Companies that are just planning to enter the market and further consolidate on it, the main indicator is financial efficiency.
Note that the business plan of an investment project is assessed according to the following indicators:
- Payback rate.
- Business profitability index.
- Net income from doing business.
- Internal indicators of the rate of return.
The feasibility of a certain amount of capital investment is determined by the ratio of the resulting net profit and the amount of capital that is invested in the organization of the enterprise.
On the basis of the calculations carried out, investors decide whether it is advisable to invest in the business the amount of money that the entrepreneur requires.
We considered an example of a business plan for an investment project on the main points that are necessary for the successful implementation of an idea in practice.
Note that the entrepreneur must strictly adhere to the entire business plan, from considering the industry and the current position of the enterprise in the market (if any) to assessing the maximum profit that investors will receive after capital investment. It must be remembered that contributors are people who are interested in your business only from the point of view of profitability. That is why all the actions considered in the business plan should be aimed at solving this paramount task. The correct implementation of the plan will ensure the actual success for the business.
Key indicators of efficiency and attractiveness of investment projects.
What is this body and how does it work in large companies. Differences between the Investment Policy Council and the Committee.
Calculation of the net worth, payback period and performance indicator of the investment project.
Criteria for the effectiveness of investment projects in monetary terms.
How to draw up a business plan for an investment project
The business plan of the investment project contains the main advantages of the proposed project and the justification of its economic feasibility.
General requirements for a business plan
Starting a business or expanding an existing business usually requires drawing up an investment project in the format of a business plan.
Investment projects can be implemented for various purposes, but their main task is to make a profit from investing in different business areas.
They can be implemented in different formats: the opening of a new enterprise, the beginning of the release of innovative products, the introduction of new equipment into the production process, or the reconstruction and re-equipment of production.
Projects can be classified according to various reasons:
- by execution time: for long-term, medium- and short-term;
- according to the degree of risk to reliable and high-risk;
- by localization: into global and local;
- in the direction of activity: social, environmental and commercial, etc.
The business plan should contain the basic advantages of the project, especially its profitability and economic prospects, compliance with market needs and legal framework in the state, its qualitative advantages over analogues and differences from competitors. After all, usually a business plan is developed for credit institutions and investors. In many respects relying on the presented document, they will make a decision on the allocation of funds and their amount.
The business plan must provide a rationale for the amount requested from the lenders. The financial plan should also include calculations taking into account payments on the principal debt and the amount of accrued interest.
Despite the fact that the business plan of the investment project will be studied by potential creditors, you should not deliberately embellish the dignity of the enterprise and give deliberately overstated figures.
Conversely, this can cause a loss of confidence in the company. In addition to the reliability of the information provided, there are other important requirements for an investment project.
So, it should be presented in an accessible form (taking into account the fact that it can be read by people who are not professionals in the technical part), have a logical relationship and differ in the integrity of information, contain only important information.
Investment project structure
The business plan of an investment project does not have a regulated structure. But the business environment has already developed its own unspoken rules in relation to the potential content of the document.
At the beginning of the document, information about the company that initiates the project is usually placed. He demonstrates the experience and success of the team.
This section allows you to get acquainted with the company and its type of activity, learn about the place occupied by the company in the domestic and foreign markets, make sure of the professionalism of the team, the established sales and logistics network, understand the strategic direction of development, etc.
Therefore, the important requirements for this section are credibility and accessibility. Usually a project summary is drawn up at the very end, after all calculations have been made.
The next section contains a general description of the industry in which the investment project is being implemented.
It is compiled on the basis of market research conducted by the company or external analysts.
It usually includes such indicators as market volume and dynamics (retrospectively and predictively), the ratio of market capacity to actual demand (market saturation level), the competitive environment and the chosen strategy of detachment from competitors, analysis of consumer preferences, identification of unmet demand, development trends industry, what factors affect demand indicators (PEST analysis), etc.
The section "Essence of the project" should contain the main goals and objectives of the project.
Particularly important is the description of the product or service intended to be released, what will be their key advantages over competitors, the uniqueness and usefulness of the product.
A detailed analysis of the advantages and disadvantages of the product and possible solutions to the indicated problem points should be carried out here.
Based on the information provided, the target audience of the product is described, conclusions are drawn regarding the potential place of the product on the market.
The investment project must also contain a description of the marketing, sales and pricing policy, i.e. by what methods the desired sales volumes will be achieved (for example, due to a more competitive price or a comprehensive service).
In the production plan, an objective assessment of the possible risks and methods of insurance must be carried out.
It contains the characteristics of the equipment that you plan to use, its capabilities and advantages.
This will serve as confirmation that the company is capable of producing the declared volumes of products.
The organizational plan contains a description of the team that will participate in the work on the project.
One of the most important sections of the project is the financial plan, which contains key financial indicators and the distribution of cash flows over time.
The financial plan should be presented in accordance with three scenarios: optimistic, baseline and pessimistic. Here you need to give calculations of the payback period of investments, the profitability index, net present value and the internal rate of return.
The project needs to include coverage of the legal aspects of projects: what permits and licenses are required, is there a patent for development, etc.
Business plan investment plan
»Articles» Drawing up a Business Plan » Investment plan
Among all sections of the business plan:
investment section in a business plan - the part that describes the investment phase of the project.
Investment plan structure
It should be emphasized that the following points must be described in the investment section of any business plan:
- All stages of the so-called investment phase (establishment of the legal framework for the project, purchase of land, premises, repair or construction of premises, installation and commissioning of equipment);
- The timing of the necessary work according to the indicated stages - it is described when the first payment is made for the purchase of equipment or premises, the terms of delivery and installation of equipment, the timing of repairs are prescribed. This is usually done in the form of a Gantt chart, which can be built using Microsoft Project;
- A list of the required equipment and its capacity, tools, materials, the planned time of their purchase and delivery to the facility;
- Events, programs, courses dedicated to the organization of staff work and staff training;
- Expenses for each stage of the investment phase, schedule and amounts of investment expenses (payments to suppliers, builders, for real estate, contractors, advances for raw materials and finished products);
- The plan for bringing the project to the planned capacity - a schedule for the output is built as a percentage of the maximum capacity of the enterprise;
- List of potential investors, lenders and other sources of capital required for the project.
In general, any investment program implies the calculation of all necessary investments in the project, the mention of key items of expenditure in stages, as well as a description of existing funds and sources of capital and the total amount of required investments.
Investment plan on the example of a grocery store
Within the framework of the business plan, it is planned to open a grocery store of the "Near Home" format in the city with a population of over 1 million people.
The store is planned to open in a residential area under construction in the city, where at the moment there is still no similar retail outlet.
To open a store, a premise is purchased in a building under construction on the ground floor with an area of 300 sq.m. The cost of the premises is 30 million rubles.
Before purchasing a retail space, a new legal entity will be created, and a license to trade in alcohol will be obtained. The cost of work on obtaining documentation will be:
- registration of a legal entity - 20 thousand rubles;
- obtaining a license for alcohol - 50 thousand rubles;
- obtaining permission from the state supervision - 10 thousand rubles.
The commissioning of the premises is planned in a rough finish, therefore, to start the work of the store, it will be necessary to carry out a complete repair of the premises, which will include the following works:
- repair work - 3,000 thousand rubles;
- electrical installation work - 500 thousand rubles;
- installation of fire and burglar alarms - 300 thousand rubles;
- cooling - 500 thousand rubles.
In addition, it is planned to purchase equipment for the store. The cost, quantity and type of equipment are presented below:
- Trade software:
- racks - 200 thousand rubles;
- low-temperature showcases - 1,000 thousand rubles;
- medium-temperature showcases - 1,000 thousand rubles;
- banquets - 500 thousand rubles;
- cash register equipment - 200 thousand rubles;
- baskets and carts - 50 thousand rubles.
- Office equipment
- computers and office equipment - 200 thousand rubles;
- furniture - 50 thousand rubles.
- Working capital investments
- purchase of goods - 2,000 thousand rubles.
The cost of other work on obtaining documentation is presented below:
- obtaining permission from the SES;
- getting permission
It is planned that the entire volume of investments, in addition to the acquisition of working capital, will be paid at the expense of the investor, who, for participation in the project, receives an 80% share in the LLC organized within the framework of this enterprise. The planned profit from the project will be divided in proportion to the shares in the LLC.
The timing of the investment phase by type of work is shown in the following figure:
It is planned that the store will reach full capacity as follows:
month | percentage of standard sales |
january 2020 | 0% |
february 2020 | 0% |
march 2020 | 0% |
april 2020 | 0% |
May 2020 | 0% |
june 2020 | 30% |
july 2020 | 35% |
august 2020 | 40% |
september 2020 | 45% |
october 2020 | 50% |
november 2020 | 55% |
december 2020 | 60% |
january 2020 | 60% |
february 2020 | 60% |
march 2020 | 60% |
april 2020 | 65% |
May 2020 | 65% |
june 2020 | 70% |
july 2020 | 70% |
august 2020 | 75% |
september 2020 | 75% |
october 2020 | 80% |
november 2020 | 80% |
december 2020 | 80% |
january 2020 | 80% |
february 2020 | 80% |
march 2020 | 80% |
april 2020 | 85% |
May 2020 | 85% |
june 2020 | 90% |
july 2020 | 90% |
august 2020 | 95% |
september 2020 | 95% |
october 2020 | 100% |
november 2020 | 100% |
december 2020 | 100% |
As we can see from the table, the store opening will take place in June 2020, and in the first month of sales we will be able to make a revenue of 30% of the maximum possible (according to plan) in this store. The grocery store will be able to reach full capacity only in the third year of operation in October 2020. Full power output is graphically shown below.
Planning is a control. Planning is the development of an algorithm for achieving a set goal, indicating the performers, resources, place and time for completing the tasks, the results that need to be achieved, formed in one document with the name "plan".
Planning involves not only micro-level tasks (enterprise, project, event), but also macroeconomic objects, such as a branch of the economy or the entire economy of the state as a whole.
In this case, they talk about centralized planning of the economy, as it was in the Soviet Union, and the economy was called planned. The market economy at the macro level also includes planning elements in its management process.
Public funds are spent on sectors of the economy in accordance with the plans for the development of the economy. These plans are reflected in government programs, and the method is called "program-target planning".
Investment planning is part of the strategic planning for the development of the investment object. What can, with a significant degree of approximation, be called the program-target method. Based on the mission of the invested object, strategic planning goals and a set of necessary resources are formed. Achieving the main goal is always associated with the investment required to achieve it. This is how investment planning appears. It is implemented at the microlevel and macrolevel, at the latter it is characterized by greater complexity and many variations in achieving goals.
The investment process involves:
- investor;
- invested object;
- intermediary and service structures of the investment process.
For them, the goals are combined in an investment project. But the ways of achieving the goal of the participants in this process are different, therefore the planning tasks are also different. For an investor, if he is not the owner of the invested object, the implementation of the investment project should lead him to an increase in the invested capital with minimal risks. For an enterprise, as an invested object, the same task is to ensure a long-term increase in its capital on a modern technical base that ensures high productivity of products, and its guaranteed sale. For the structures serving this process, the task is more modest: resource provision of the investment process and then the production of products.
An investor risks his money, so it is important for him to know where and how his funds will be spent, and how they will be returned to him. To do this, he will carefully study the investment project, the state of the investment object, its production and economic activities, the market position and even its competitors. The investor will require an investment plan from the enterprise, called. If there are several projects, then the investor will demand to rank projects and provide priority to his project.
The most difficult task is facing the enterprise. Investment planning, as a rule, is not limited to one investment project. That is, it is necessary to rank projects, to determine the order of their implementation. A business plan is formed for each project. Based on business plans, a comparison is made between the profitability of projects with bank deposits, the profitability of projects with assumed inflation. If the level of profitability of a project is below the average rate of a bank deposit in the country, it is excluded from the investment plan or sent for revision. Also with inflation.
But that's not all. The level of profitability of projects (internal rate of return) is compared with the indicators of the current profitability of the enterprise. If the internal rate of return of one of the projects is lower than the current profitability of the enterprise, then this project can also be excluded from investment plans.
The ranking of the remaining projects in the investment plans is made according to the payback periods of the projects and the net present value of the project. Projects with a minimum payback period and a maximum net present value will be quoted above the rest.
At the same time, the company assesses investors according to their financial capabilities, the reliability of the capital provided, if possible, its participation in the social development of the enterprise, the absence of a criminal component, and much more.
With the help of an investment project, an investor can acquire ownership of a part of the enterprise's capital, therefore such a study of investors is quite justified.
Formation of plans for service structures is completely subordinate to the plans of investors and enterprises.
Business investment planning
Business investment planning is tied to specific projects. A business plan, as a document, is formed at all stages of the implementation of an investment project: pre-investment, investment, production and at the end of the investment project. The methodology for the formation of business plans is the same, the difference lies in the reliability of information for obtaining calculations. Therefore, the business planning process can be viewed as an iterative process. True, there are differences in business plans prepared for an investor, a bank, their own management and for public presentation of the same project.
Many banks that provide loans for investment projects, require business plans from the project owners, prepared according to their internal business planning methodology... But there are also such banks that are satisfied with the presented business plans, since they receive the necessary information from them for their own calculations. Banks in their business plans calculate a number of indicators specific only to the banking sector.
Investors are less demanding on the methods of calculating and forming business plans. The fact is that almost all business planning methods include calculations of the main technical and economic indicators that allow the investor to draw a conclusion about the economic efficiency of the investment project.
It would be correct to provide the investor with the same business plans as the management of the enterprise, but the leaders of the enterprise demand pessimistic and optimistic options for business investment plans, and the investor is sent an optimistic option.
Investment business plan structure
An investment project business plan is a voluminous and complex document. It contains a descriptive part and a calculation part.
The descriptive part includes: characteristics of the enterprise, characteristics of the investment project, description of the product market and its sales, production program of products, description of the management structure of the enterprise.
The estimated part includes the budget for the movement of funds for the implementation of the project with an indication of the financing schedule, calculations of financial indicators and indicators of the economic efficiency of the project.
The computational part is preceded by a table of initial data for the computational part, which contains data on the conditions of the investment project: inflation forecast data, the dynamics of changes in prices for basic resources and products, the dynamics of changes in the value of the national currency to the main currencies of the world or to the one represented by the investor. Also included are the interest rate of the Central Bank, the lending rate of the bank financing the project, the discount rate for calculating financial indicators and other external parameters that affect the efficiency of investments.
The business plan ends with a table of indicators of the economic efficiency of the project, by which the project can be evaluated.
If only the calculations of the minimum allowable price made by the entrepreneur show a clear profitability of the implementation of such a project, then he takes further steps to prepare for the implementation of such a project. Profitability is determined by the excess of the expected market price over the estimated production costs, as well as the amount of capital invested.
The capital of any enterprise is divided into fixed and circulating.
The ratio between fixed and working capital is different in different industries, for example, for a trading company specializing in the sale of refrigerators, televisions, video and audio equipment, it is 10 times higher than that of a flower shop with the same turnover.
Some activities (for example, street entrepreneurship) do not require the need for fixed capital. A boy who sells newspapers at an automobile intersection does not need fixed capital, all his capital is circulating. However, the owner of a stationary newspaper kiosk needs both circulating and fixed capital.
An example of calculating the structure of the initial capital (in monetary units) is given below.
Main capital |
|
Building |
600 000 |
Main capital |
|
Raw materials (stock) |
200 000 |
Total(total capital requirement) |
The prices shown in the capital structure are conditional. When planning the implementation process of the project, the entrepreneur should make a preliminary estimate of the required funds.
Based on a preliminary assessment of the need for initial capital, the entrepreneur draws up a specific investment plan, that is, a reasonable (taking into account the prices in force at the time of drawing up the plan) and thoughtful (based on a comparative analysis of forms and ways of investment) plan for investing money in the project.
An example of an investment plan (in monetary units) for setting up a toy business is shown below.
In drawing up this plan, we proceeded from the following preconditions:
An entrepreneur is always faced with the task of analyzing the ratio of costs and benefits. Of course, during the period of formation, this task is of particular importance for an entrepreneur, since then it is important to minimize costs and maximize income. This is what the entrepreneur pays paramount attention to at the stage of both preliminary calculations and the implementation of an entrepreneurial project.
At the stage of preliminary calculations, the entrepreneur is usually preoccupied with finding the most economical way to obtain everything necessary for organizing the production process. How is this achieved?
First, a comparative analysis of all possible options for obtaining everything necessary to start the practical implementation of the project is carried out. Suppose you are planning to open your own enterprise and you need a facility to locate production.
Let's imagine the most ideal situation when there are several sentences:
1. You can buy a suitable building for 800 thousand monetary units (with a total area of 1200 sq. M) and for 950 thousand monetary units (with a total area of 1450 sq. M);
2. You can rent a building with a rent condition of 60 thousand currency units per year;
3. It is possible to place a production facility in the provided building with the transfer of 30% of the goods produced to the owner of the building.
Which option should you choose? It may seem strange at first glance, but you can stop at option 1 - buy a building that costs 950 thousand monetary units. The total area of the acquired building is 1450 sq. m, our needs are about 1000 sq. m. Consequently, in this case, the surplus area is equal to 450 square meters. m, which can be leased to a foreign company with a rent of $ 300 per 1 sq. m per year, that is, the income will be 135 thousand dollars. This means that after a year (or even much earlier, subject to prepayment from the tenant), you can fully return the loan. True, this will cause additional capital expenditures for the renovation of premises for their transfer under a lease agreement to a foreign partner.
If it is not possible to take a significant loan in order to purchase a building, then you should agree to option 2. But the landlord may require an advance payment, and if we cannot make it, then we are left with option 3. Of course, this option is enslaving, but nevertheless it makes it possible to start project implementation without any significant initial capital investment.
So we analyze all the positions of the investment plan and try to choose not only the most economical, but also the most possible method for us to form the necessary production structure.
Secondly, in the conditions of Russia, the formation of initial entrepreneurial capital has its own characteristics associated with the unwillingness of society to provide assistance in the implementation of socially significant entrepreneurial projects. In such a situation, the formation of initial entrepreneurial capital can be carried out on the basis of hidden partnership concepts, the content of which boils down to the following points:
1) an entrepreneurial project for the production of a specific product is being developed; ...
2) the project is divided into main parts;
3) orders are placed with partners for the production of individual parts and components of the goods;
4) partners, as parts and components are manufactured, deliver them to the entrepreneur;
5) the entrepreneur assembles from parts and components received from partners;
6) the entrepreneur packs and labels the goods;
7) the entrepreneur delivers the goods ready for consumption to the consumer (trade agent) and receives funds from him for the goods sold;
8) having received money for the goods sold, the entrepreneur pays with his partners - suppliers of individual parts and components of the goods.
Let's consider one of the possible examples. Suppose you have developed a new type of sugar bowl, which is a truncated cone with a screw cap on top. A hollow (for pouring sugar) metal tube is mounted into the lid, which does not reach the bottom by 1 cm. The consumer pours sugar into the sugar bowl and screw the lid on. When the lid is folded back, a dosed amount of sugar is poured into a cup of tea or coffee (if necessary, the procedure can be repeated, and then you will receive a double dose of sugar). We will not talk about the advantages of a sugar bowl - this is a separate topic.
The entrepreneur first conducts a market research, finds out whether there will be a demand for such a product in the market and what price can be offered for it. Suppose that with the price of such a sugar bowl 35 monetary units, the demand could be about 10 thousand pieces. Further, the components of this product are highlighted, the production of which could be outsourced. In our case, you can think about placing (with different manufacturers) orders for the production of a sugar bowl body (in the form of a truncated cone), a lid with a hollow tube mounted in it for pouring sugar, a packing box. After that, possible partners are selected who can undertake the manufacture of each of the selected components, the necessary technical documentation is prepared for its transfer to future partners, and contracts are concluded with them for their production and supply. Under contracts with your partners, you receive the ordered components from them and independently assemble, pack the goods and deliver them to the market.
The production of goods on such conditions can be carried out with almost zero capital, since the costs of acquiring (or renting) production facilities and everything necessary for production are not required. Capital will be needed (very insignificant) to equip only the premises for the assembly and storage of products. However, this is only possible if the partners - manufacturers of components do not require an advance payment, but produce the goods on a post-facto payment basis, that is, they supply you with their goods on credit (the credit term can be very short, up to 1 month). ...
If the manufacturers require prepayment, it remains possible to obtain a loan from your sales agent who will sell your product. This credit can be used by you for settlements with partners - manufacturers of components. If your sales agent does not give you a loan, then there remains the possibility of obtaining a bank loan (especially since you will not apply for a too large amount). In any case, it can be concluded that the use of the concept of the mechanism of hidden partnerships in certain conditions may be a good way out of the difficult situation in which the entrepreneur finds himself.
The concept of the mechanism of hidden partnerships includes another option, which consists in the possibility of forming initial capital through taking on certain partnership obligations. Basically, in the conditions of Russia, such obligations are reduced to the performance of intermediary functions.
For example, your Ukrainian partner asks you to purchase 100,000 videotapes for him in Moscow. You set a condition for him to pay in advance and negotiate a price - say, 16 rubles. for one cassette (the amount of payment to your address will be 1.6 million rubles). However, before setting these conditions to him, you agree with the supplier of videotapes on the terms of their delivery and make preliminary calculations.
Suppose your Moscow partner (supplier, owner of cassettes) agrees to supply you with cassettes at a price of 15 rubles. for 1 pc. In this case, your profit will be 0.1 million rubles. - the amount that can be the basis for the formation of the initial capital.
Attention!
The VVS company provides exclusively analytical services and does not advise on theoretical issues of marketing fundamentals(calculation of capacity, pricing methods, etc.)
This article is for informational purposes only!
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Typical mistakes when drawing up an investment business plan
Considering that many organizations often make the same mistakes when developing an investment business plan, it is worth paying attention to the most common of them. We will not touch on any complex cases, but we will list a number of the most typical mistakes that can be made by beginners who first started drawing up an investment business plan. We hope that you will take into account this information and yourself will not make such mistakes in your investment business plans.
1. Carefully monitor that the initial data used in the calculations correspond to the data indicated in the textual part of the investment business plan and tables. Unfortunately, in practice, such situations in investment business plans are not uncommon. Some of the employees have not yet prepared the necessary information and provided outdated information, or some of the indicators were obtained from different sources. Even if later it is possible to establish which information is correct, the investor is unlikely to rely on the corrected investment business plan with confidence, since he will expect other errors.
2. Be careful with the choice of parameters such as horizon duration and planning interval. It is very common for an organization to specify too long intervals in an investment business plan. It's easy to see why this is happening. The fact is that having in the interval not a quarter, but six months, it is easier to achieve the results that are predicted in the investment business plan. This is a reliable way to avoid missed deadlines, not to irritate investors, always and in everything to comply with the set pace. And it seems that such an agreement with an investment business plan is a guarantee of investors' disposition, but in practice everything turns out to be different.
A competent investor understands perfectly why such long intervals arise: the organization is simply not sure that it will be able to achieve the assigned task in a quarterly period, and therefore stretches it for six months and further. This means that in certain months the business will sink. For example, hoping to compensate for everything with May revenue, the organization may be idle during the winter months. But the lack of finance will lead to adverse consequences. It is possible that the company will simply go bankrupt during the calm months, since it will not have the funds to support its activities.
In addition, by setting long terms in the investment business plan, companies often try to take time with a margin, but for the investor this only means that the organization will not work at full capacity. Funding for such a project is, of course, undesirable - the risks are too great.
3. It is necessary to be able to explain to the investor why this or that method of calculation was chosen in the investment business plan, especially when it comes to the discount rate, sales volumes and production parameters. It is important to understand that the investor will give preference to a business plan in which all the elements are not chosen randomly, but according to some principle. Projects where everything is done offhand are not particularly credible.
Surely, you have already noticed that the need to create a business plan or investment project is a very difficult task. There are many nuances, features of calculations, methods and approaches, which not every leader can take into account and consider. However, there is always a way out. If you cannot draw up an investment business plan on your own, then you should entrust this task to professionals - the information and analytical company "VVS". Experienced specialists will easily carry out the development of an investment business plan of the highest complexity for organizations of any direction. The company has 19 years of experience in providing product market statistics as information for strategic decisions, identifying market demand. The main client categories are: exporters, importers, manufacturers, participants in commodity markets and B2B business services.
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Quality in our business is, first of all, the accuracy and completeness of information. When you make a decision based on data that is wrong, to put it mildly, how much will your loss be worth? When making important strategic decisions, it is necessary to rely only on reliable statistical information. But how can you be sure that this information is accurate? You can check it! And we will give you that opportunity.
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