Enterprise investment planning

GENERAL CONCEPTS about investment planning

BUSINESS PLAN as an investment planning tool

FORM OF SUBMISSION of the financial plan of the investment project

TIME FACTOR in investment analysis

BASIC METHODS FOR EVALUATING investment projects

YOUR INVESTMENT PROJECT through the eyes of a loan officer

Sections: Business plan as a tool for investment planning and your investment project through the eyes of a loan officer will help you avoid many mistakes on the way of attracting investments.

The need for investment may arise at any stage of its activity. The specificity of small business is characterized by the lack of sufficient free funds for investment.

In order to attract outside financial resources, you must properly present your idea.

GENERAL CONCEPTS about investment planning

What are investments and what are they?

Investments - a set of long-term costs of financial, labor, material resources in order to increase savings and profit. Investments, ensuring the dynamic development of enterprises, allow us to solve the following tasks:

• Expanding your own business by accumulating financial and material resources;
• Acquisition of new enterprises;
• Diversification through the development of new business areas ...

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1. Purpose and functions of the investment business plan

A business plan is a document that should comprehensively, systematically justify management decisions, clearly present the goals and tasks arising from this, objectively assess external and internal conditions, determine the resources necessary to achieve these goals, describe everything it is in the language of numbers and to prove the effectiveness of this solution for all participants involved in the business.

1. The product (services) that the company is going to produce is described.

2. Product markets are evaluated.

3. Competition in the market is assessed.

4. A timetable for the implementation of the project is drawn up.

5. A production plan is being developed: where the production is located, who are the suppliers, equipment, quality control, ecology, etc.

• This type of work is not a scientific work, it is not a finished graduate qualifying work!
• This type of work is a finished result of processing, structuring and formatting the collected information, intended for use as a source of material for self-preparation of educational work.

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Business planning is a critical factor in business success. Planning your business is necessary for many reasons. After all, it often happens that the technology business is perfectly timed, but the economic aspects are the reasons for the failures in the technology of doing business. It is necessary to think over and plan in advance all the economic aspects of the business. It is important to plan the purchase of raw materials, fuel, components and semi-finished products. Production efficiency, value added tax, and working capital turnover depend on this. Very often an ill-conceived procurement policy leads to overpayment of VAT and inefficient use of working capital.

Often incorrectly planned real costs of production and sales lead to the insolvency of business entities.

Today we can say that economic instability often leads to the inability to carry out normal planning. Unfortunately, this misconception is often used by managers to justify the lack of a clear planning system. Yes, the external environment is very mobile and many factors (inflation, decline in production, taxes, etc.) make the situation uncertain. This does complicate the planning system, but does not negate the need.

A business plan acts as an objective assessment of its own economic activity and at the same time a necessary tool for making design and investment decisions in accordance with the needs of the market. He describes the main aspects of the enterprise, analyzes the problems it will face, and identifies ways to solve them. Consequently, a business plan is simultaneously a search, research and development work.

It is no exaggeration to call a business plan the basis for managing not only a commercial project, but also the enterprise itself. Thanks to the business plan, the management has the opportunity to look at their own company from the outside. The very process of developing a business plan, including a detailed analysis of economic and organizational issues, makes us mobilize. The purpose of a business plan can be obtaining a loan or attracting investment, determining the strategic and tactical guidelines of the enterprise, etc. ..

An important task is the problem of attracting investments, including foreign ones, in existing and developing enterprises. This requires justification and justification for the development of projects requiring investment. A business plan is used for these and some other purposes.

Among all sections of the business plan:

• Cover Page
• Confidentiality Memorandum
• Executive Summary
• Investment Plan
• Marketing plan
• Production plan
• Organizational plan
• Financial plan
• Risk analysis

investment section in the business plan - the part that describes the investment phase of the project. Should contain information regarding the main stages of the implementation of the described project, starting with the design and building of the project team (if necessary), the acquisition of land and construction of the premises, ending with the purchase of equipment, its commissioning and the full launch of production.

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 of 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 site;
• Activities, programs, courses on staff organization and staff training;
• Costs for each stage of the investment phase, schedule and amounts of investment costs (payments to suppliers, builders, for real estate, contractors, advances for raw materials, finished products);
• A plan to bring the project to the planned capacity - a schedule of output is built as a percentage of the maximum capacity of the enterprise;
• List of potential investors, creditors 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 necessary 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 "U 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. ... 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 a permit state supervision - 10 thousand rubles.

Delivery of the premises is planned in a rough finish, therefore, to start the store, it will be necessary to carry out a complete renovation of the premises, which will include the following works:

• repair work - 3,000 thousand rubles;
• electrical work - 500 thousand rubles;
• installation of fire and security alarms - 300 thousand rubles;
• carrying out cooling - 500 thousand rubles.

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KUBAN INSTITUTE OF INTERNATIONAL BUSINESS AND MANAGEMENT

Department of Organization Management

by discipline: Fundamentals of Management

Business investment planning in the enterprise

The success of any business depends on how well the business sector is chosen, the market situation is correctly assessed, the strategy is chosen and the tactics for its implementation are developed. It should be borne in mind that modern projects require, as a rule, large capital investments (investments), which are not always available to the entrepreneur.

Deciding on investments (both internal and especially external) is a strategic task, one of the most important and complex tasks of the company's management. When attracting external investments, an entrepreneur must take into account that the potential creditors (investors) of the company are primarily interested in what they will receive upon successful implementation of the project, and what is the risk of losing their money. Consequently, the entrepreneur must show the investor or partner the essence of his business by preparing a series of options that demonstrate to them the benefits of the proposed partnership and, most importantly, the income (minimum, most likely and maximum) that they will receive.

Strategic planning is the management activity of creating and maintaining strategic alignment between the goals of a firm, its potential and technological capabilities and marketing opportunities, and to achieve a strategic advantage over competitors. Burov V. Business plan of the firm. Theory and Practice: Textbook. allowance. - M .: INFRA-M, 2021.

One of the key elements of strategic planning is a business plan, which is the result of a comprehensive study of various aspects of the firm's activities.