Business plan investment project concept appointment structure
A business plan (BP) is a document in which an investment proposal is comprehensively, systematically and in detail justified and the main characteristics of an investment project are determined.
A BP must convincingly prove the effectiveness of making an investment decision for its potential participants, stakeholders, state and local authorities. BP is an integral part of business planning.
The need to draw up an investment BP is due to the following:
1. In modern conditions, BP is the main investment document for real investment objects.
2. External investors will currently participate in the investment project only if they become familiar with its BP in detail.
3. When counting on attracting foreign investment, you need to be able to substantiate your applications in accordance with generally accepted international standards.
To study the capacity and development prospects of the future sales market.
Estimate the costs of the project, compare them with the income and thereby determine the potential effectiveness of the event.
A correctly written BP should ultimately answer the question of whether it is worth investing in this project and whether it will bring profit.
Attraction of external sources of financing for the implementation of the investment project.
BP is a promising document, and it should be drawn up for 3-5 years in advance. For large investment projects, a complete BP version is being developed (40-50 pages). For small investment projects, it is allowed to develop a short version of the BP (10-15 pages), and at the request of the investor, it can be supplemented.
Foreign and large Russian investors often require an independent examination of the BP. Project proponents may include a confidentiality memorandum. The BP should be presented in a form that allows the interested person to get a clear idea of the essence of the case and the degree of his interest in it. Development and presentation of BP are subject to a certain logical structure, which in most countries with developed market economies is unified. Standard methods were developed by UNIDO, IBRD, EBRD. A number of domestic techniques have also been developed on their basis. The differences between these techniques are in the level of detail. Currently, there are 10 sections.
1. Brief description (summary of the investment project). 2. Characteristics of products or services.
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An ordered scheme of actions to achieve a certain goal is called a "plan", therefore, planning is a continuous process of finding new ways and methods of optimizing targeted actions at the expense of new opportunities.
So, the management of any enterprise constantly feels the need to make a choice. It must choose the best selling price, the size of the series of products produced, make decisions in the field of credit and investment policy, and much more. To ensure the possibility of making economically sound decisions, enterprises make and analyze calculations of alternative proposals and describe the expected results of economic activity.
Despite all the difficulties and problems, millions of people are already employed in the field of private entrepreneurship in Russia. However, business is a very special way of life, which implies a willingness to make independent decisions and take risks. Having decided to start a business, an entrepreneur must carefully plan its organization. In market conditions, business plans are necessary for everyone: bankers and consumer-investors, employees of firms who want to assess their prospects and tasks, and, above all, the entrepreneur himself, who must carefully analyze his ideas, check their feasibility.
That is why the topic of my term paper is relevant in the modern world. The purpose of this course work: to get acquainted with the essence of the business plan of the investment project. In accordance with this goal, it is necessary to solve the following tasks: consider the concept, tasks, types of business plans in general, study the structure and essence of the investment business plan, and calculate the tasks for the course of financial management.
1. Investment business plan
1. Concept, types of business plan
Planning is the norm in any business. With the development of the market in Russia, the need for business plans became so obvious that already in 1994-1995. their application becomes mandatory. In January 1995, the Moscow government, for example, issued a decree recommending the use of a business plan “in order to improve methods for calculating the economic efficiency of design solutions and the commercial feasibility of investing in the design and construction of facilities and urban development complexes”.
Planning is an activity that consists in the development and practical implementation of plans that determine the future state of the economic system, ways and means of achieving it.
Business plan (BP) is a document in which an investment proposal is comprehensively, systematically and in detail justified and the main characteristics of an investment project are determined.
A BP must convincingly prove the effectiveness of making an investment decision for its potential participants, stakeholders, state and local authorities. BP is an integral part of business planning.
The need to draw up an investment BP is due to the following:
1. In modern conditions, BP is the main investment document for real investment objects.
2. External investors will currently participate in the investment project only if they become familiar with its BP in detail.
3. When counting on attracting foreign investment, you need to be able to substantiate your applications in accordance with generally accepted international standards.
To study the capacity and development prospects of the future sales market.
Estimate the costs of the project, compare them with the income and thereby determine the potential effectiveness of the event.
A correctly written BP should ultimately answer the question of whether it is worth investing in this project and whether it will bring profit.
Attraction of external sources of financing for the implementation of the investment project.
The business plan of an investment project is a roadmap for capital investments in an enterprise, regardless of the field of activity. It is developed on the basis of a feasibility study (FS), allowing you to assess the prospects, risks and ways to achieve the goals. "Business. y ”talks about the intricacies of creating this document.
Why do you need an investment project plan
A business plan is the foundation of any business. It allows you to look at an idea that seems brilliant to its author through the eyes of an outside observer. This is the only way to simulate the future of the upcoming business, financial and investment indicators, the degree of need for qualified personnel, the influence of external macro- and microeconomic factors. In other words, will you return the money invested by the investors (or your own) and when will it happen.
A long-term scenario of the development of events will be useful for raising funds (they are invested by business angels, venture funds and others) in innovative projects. They all require a business plan, even if your firm is doing well.
See also: How to draw up a sales plan for managers correctly?
Four stages when planning is indispensable:
- Starting a business. It has the most important influence on a nascent enterprise, or at the time the company is looking for new areas of activity. The document helps the entrepreneur to outline the goals of his business.
- Planning the current activities of the company. Allows you to assess the development opportunities in the chosen niche, as well as control the internal processes of the company. - Attracting investment. Banks do not issue loans and credits without a clear understanding of where the company is heading.
- Search for partners or investors. Helps them assess the prospects for your company.
Features of the business plan of the investment project
A considerable number of different business plans are known, up to the planning of debt restructuring or justification of leasing. Let us analyze with a specific example how they differ. Let's compare the business plan of an investment project with the planning of the plant's work.
Business plan of the enterprise Business plan of the investment project 1 Should cover all the goals of the enterprise. focused on one main goal. At its core, it consists of comprehensive planning that is carried out continuously. the time frame is limited - there are exact start and end dates. It is usually drawn up for a period of three to five years. The first year of operation is prescribed in great detail. left for a long time, which often coincides with the life cycle of an investment project. Reason for development: creation of clear regulations for the operation of the enterprise for a selected period of time. The main reason for the development: raising funds for the project.
