Content of the business plan of the investment project

In the modern world, investing has become one of the most popular ways to make money. Business activity in Russia is developing, and the number of newly opened companies is increasing every day. New business ideas are born from young and promising people who can easily figure out what will be relevant today and in a couple of years. The only problem for the development of small and medium-sized businesses is the lack of a sufficient amount of start-up capital. Not everyone is ready to take a big loan from the bank, respectively, not everyone will be given it. On the other hand, investing in new projects has become very popular. Successful and successful people understand that money must live, develop and create capital. Therefore, if they invest in a good business today, then their money will begin to live and increase income.

Investing is a necessary lever for the development of a market economy today. The task of a novice businessman is to convince a future investor that his idea is worthy of development. The right investor is always ready to consider finished projects. In business, you cannot choose a field at random. The decision must be made on the basis of a holistic economic analysis. Consideration of projects also includes studying statistics and forecasting data for the future.

When an investor is offered a certain project for consideration, he draws up an investment business plan for him. It is this approach that will help to adequately assess the proposal and its prospects.

What is an investment project business plan

When did an investment project first appear in Russia?

Drawing up investment business plans is the practice of foreign companies that entered the Russian market in the early 90s. During this period, the role of the economy began to change, and private business began to develop. Most of the organizations needed funding from foreign companies, since the domestic economy could not cope with its tasks. In order to obtain a loan in another country, an entrepreneur was required to provide an investment business plan. Since no one could really do this, whole companies appeared that provided services for the preparation of such investment plans.

Nowadays most companies can develop such a document on their own. Its relevance has not lost its force, and every progressive entrepreneur should know the algorithm for creating an investment plan.

Why do you need to draw up an investment business plan

An investment business plan is drawn up in order to:

  • Use the practice of creating foreign investment projects in the Russian economy.
  • Conduct an adequate assessment of the effectiveness and prospects of the business.

Based on the data of a correctly drawn up investment plan, the following decisions can be made:

  • Is it worth and possible to obtain project financing in the form of loans abroad.
  • Is this project worth your attention.

How to make money on an investment project

Business plan is a necessary document to attract investments. It is the business plan that is a kind of summary for your project, from which it should become clear to the investor whether it is worth investing financial resources in the project, what kind of return (profitability) and how long to expect.

An investment business plan is not only a justification of the feasibility of investing in a project, but also serious calculations. Without supporting any considerations with specific figures and calculations, this document turns into just value judgments.

Why does an investment project need a business plan?

As already noted, a business plan is a document that reveals and justifies the feasibility of a particular project. A distinctive feature of the investment project is that attracted resources become the main sources of financing for the activities proposed for the project. That is, the direct initiators of the project, business, as a rule, do not invest 100% of financial resources in the project.

The business plan is the main document that allows the investor to make a decision. If you do not have sufficient resources to start a business, but have a great idea, investment resources will become just the source of funding that will help start a business. You can attract funds for almost any project, the main thing is to correctly convey your idea to the investor, backing it up with the necessary calculations. Without forecasts and targets, industry estimates based on the available data will simply not believe your idea and refuse funding.

Investments can be attracted from various sources:

  • Private investors
  • Investment companies
  • Banks
  • Government
  • Crowdfunding

Private investors are any individuals who have free funds at their disposal and who want to invest them in order to generate income (as a percentage of profit or as a share in a company). The same category can include companies in which investment activity is not the main one, but which, having free funds, can also invest funds in an investment project.

Investment companies differ from private investors in that they have great investment potential (large financial resources) and diversify their risks. Investment companies invest in several projects at the same time, which allows them to receive a relatively stable income - the failure of one project can be compensated by the profitability of other projects.

Banks provide credit resources as investments. In this case, the investor's income in this case is the payment of interest on the loan. At first glance, credit resources are the most convenient form of attracting financing. But it is not always the case. It is also important for the bank to understand (based on the business plan) the payback of the project being created and the solvency of the founders. In addition, a bank loan is associated with great risks for the initiators of the project. In the event of bankruptcy, the obligation to pay the debt remains; in the case of attracting investments from other sources, such an obligation is most often absent.

How to develop an investment business plan, choosing an industry for investment, assessing the prospects of an invested business

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Ministry of Agriculture of the Russian Federation

Federal State Educational Institution

higher professional education

Michurinsk State Agrarian University

by discipline: Investment strategy

on the topic: Content of the business plan of the investment project

1. General characteristics of the business plan

1. Concept and objectives of a business plan

2. The structure and content of the business plan

3. Problems of modern business planning

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Students, graduate students, young scientists who use the knowledge base in their studies and work will be very grateful to you.

Academy of Management under the President of the Republic of Belarus

Faculty of Innovative Training

Department of Enterprise Economics

Specialty Information Resource Management

by discipline: Organization economics

Business plan of the investment project

Chapter 1. Theoretical aspects of the business plan

1. The concept and meaning of a business plan for an investment project

The creation of a new enterprise, the expansion or reorientation of an existing production is always associated with the need for capital investments. For this, an investment plan is drawn up, which allows you to get a clear idea of ​​what amount of financial resources will be necessary for the implementation of the project, what level of income can be obtained and by how much income will exceed expenses (if they exceed). Therefore, in the future we will consider some aspects, knowledge of which will help you when developing an investment plan.

What is an investment plan

The investment plan of an enterprise or project is a list of areas of capital investments and the calculation of the return on them, that is, the profitability of the planned project. Investment planning usually covers all stages of the project, because the costs are not carried out at the same time, and the moments of investment and income also do not coincide in time. Therefore, an investment plan is a document characterizing the main indicators throughout the entire period of the project.

An investment plan is an indispensable component of any business plan, since in addition to preparing a production program and developing a sales strategy (more broadly, the entire marketing complex), it is important to support all this with calculations. This section not only provides a list of project revenues and expenses, but also analyzes the sensitivity (elasticity) of demand, calculates profitability indicators and various financial ratios, compiles consolidated documents (for example, a cash flow statement, a profit and loss statement). And, of course, it is impossible to imagine the investment part without such parameters as the break-even point, net present value, internal rate of return, etc.

Why does the project need investment planning

Any planning is, first of all, the systematization and ordering of actions, which helps to effectively use time and financial resources. That is, planning allows an enterprise to achieve goals in a clearer order, and not act "at its own peril and risk." This accuracy becomes especially important when it comes to finance.

Therefore, the presence of an investment project plan is a necessary element for the implementation of any undertaking. Without preliminary calculation of the required amount of investment and correlating it with the forecast value of income, you can simply remain bankrupt.

Investment planning not only allows you to understand the prospects of the project, but also becomes the basis for determining the feasibility of an undertaking. For example, you have a certain amount of financial resources. How to dispose of her? You can invest money in starting a business, you can buy securities or open a deposit in a bank at interest, and there are many more options. How to choose? This will help the presence of an investment plan. For example, one of the basic indicators of this document is net discounted income, which allows you to compare the possible benefits from the project with the profitability from the most risk-free investment of funds - opening a deposit with interest. Drawing up such a strategic document as a project investment plan performs several functions at once:

  • Creation of a business concept;
  • Modeling its development;
  • Analysis of the possibilities of practical implementation of the presented model
  • Identification of possible risks;
  • Attraction of investment sources;
  • Calculation and evaluation of the effectiveness of capital investments.

In general, you can familiarize yourself with the concept and classification of investments from the corresponding article of this section.

Key elements of the investment plan

In general, an investment plan is a rather voluminous document containing a large number of calculations. Below are the elements that must be presented in any investment section of a business plan:

  • List of stages and phases of the investment implementation (for example, the construction phase, test production and sales, etc.);
  • Time planning (specifying the timing of each of the phases of investment and project implementation), which will depend on many factors. The main task in this case is to plan everything most effectively depending on these factors, among which one can name, for example, the timing of the repair, the length of the equipment delivery period, the timing of commissioning, etc.;
  • Also in the investment plan, you need to present a table with a detailed list of the required equipment, its quantity and, most importantly, the cost.
  • Investments in the search and training of personnel in some cases represents another significant cost item;
  • A list of sources of attracting financial resources, that is, a list of investors;
  • Forecasting income can carried out by completely different methods, but the most common is the method of focusing on the indicators of competitors-manufacturers of similar goods and services;
  • Calculation of performance indicators and drawing up consolidated reporting are the final stages of investment planning.

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