How to draw up an investment business plan correctly

Investments should be not so much risky (sometimes a share of risk should still be present), but rather strategic and competent. That is why I often talk about diversification, which is especially important when we are looking for answers to what an investment plan is and what is its key task.

First of all, it is important to understand which tools are effective: portfolio investments or buying shares, investing in business or HYIPs, and besides that, think over how long they are suitable. Achieving life goals, no matter what it is: buying a sofa or wintering in Mexico requires money. And about how to get them and receive them throughout the entire period, make a plan yourself or entrust it to professionals, are there any restrictions on the start-up capital - about this and more and more in the article of my GQ Blog Monitor.

What is an investment plan?

I would like to draw your attention right away, dear readers, that there is no one complete concept that would describe this term 100%. Since it is quite global and concerns everyone, changes under the influence of various factors, it is customary to talk about 3 main directions in its explanation:

• a personal investment plan as a global financial development strategy;
• a business plan with a specific direction;
• preliminary planning of investments and profit on them ...

I constantly clarify that investment management is not just necessary, it is essential for investors with different portfolios. It is difficult to imagine that you are investing money and then stop doing it altogether, forget in which projects they are focused and what profit they bring. Money loves an account, but at the same time such an investment plan, although similar to a business direction, has several fundamental differences.

Difference from business plan

Considering the basic differences, I will note the following:

• a business plan, as a rule, is formed for a year, an investment plan for different periods, up to a month;
• some adjustments can be made in the business, in the investment - it is possible, but not recommended;
• there is no advice and recommendations on expenses and income on the investment plan.

Choosing trust management of an investment plan, experts will help you figure out where to invest and for what period, what proportion of risk in projects and form a strategy that regularly brings profit.

An investment business plan is an important tool in the entire investment mechanism. With it, you can conduct a thorough and detailed analysis of the future project in which the investor is going to invest. This will help to avoid risks and create an investment structure, which will maintain control over accounts and invested funds.

General information

Investment attraction business plan is a detailed analysis of the project in which the investment is planned. It is the plan that shows the general risks and payback periods of the funds that the investor will provide to the company. It depends on the efficiency of the business itself.

The first thing that is taken into account when analyzing a company and its position in the external financial market is competitors and the general demand for the company's products. If the competition is high, then it is necessary to find the advantages of investments, otherwise other organizations will ruin the investment object. The role of a business plan in entrepreneurship and investment is very important. It allows you to visually see the entire financial picture.

An investment business plan is drawn up for the following purposes:

• assess the current situation of the company: efficiency and profitability of its activities, further development prospects;
• combine other investment instruments in order to get more profit and benefits from the investment process;
• understand whether there is an opportunity to invest in such a company in the current period of time;
• establish the final investment result and compare it with your goals and expected expectations;
• finally find out whether it is worth investing money in a project or company and whether it will pay off over time.

Therefore, such a tool is essential for every investor. So you can save your money and not get into an unpleasant financial situation, especially in a crisis.

Investment business plan structure

Such a document consists of certain points and criteria, which cannot be overlooked. He will help to formulate the general concept of the project and look at future partners from different angles. It is important to indicate the following key points in the investor business plan:

• stages of the investment policy, namely the conclusion of contracts and other documents that will establish the investor's rights to a part of the company's profits;
• setting the timing of the investment: they must be strictly fixed so that you can clearly consider the effectiveness of the company in a given period of time;
• a detailed description of the industry that the selected company or project represents: it is important to indicate all the nuances and aspects of the activity;
• steps to carry out investment actions that approach profit: register each moment, preferably with a time frame;
• the business plan also contains marketing calculations: the firm's specific costs for equipment, personnel, and then for the income of investors ;
• a detailed look at the profitability and return on investment of an organization or project. The investor's profit directly depends on this, since if these indicators are low, then there is no point in investing in production;
• the level of risk, it must be calculated in advance. This can be done through competitor assessments and similar activities of other organizations. The more competition, the higher the risks. Therefore, it is best to invest in innovative industries.

Every professional business plan should contain all of these key points. Otherwise, its incompleteness can adversely affect the investment process: unaccounted for unforeseen situations can easily ruin.

Scheduling 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 set, the results that need to be achieved formed in one document with the name "plan".

Not only microlevel tasks (enterprise, project, event) are subject to planning, but also macroeconomic objects, such as a sector 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.

Investment planning is part of the strategic planning of the investment object development. 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.

Enterprise Investment Planning

The following are involved in the investment process:

• investor ;
• the object to be invested;
• 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 basis that ensures high productivity of products, and its guaranteed sale. For the structures serving this process, the task is more modest: the 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 demand from the enterprise an investment plan, called a project business plan. If there are several projects, then the investor will demand to rank projects and provide priority to his project.

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.

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KUBAN INSTITUTE OF INTERNATIONAL BUSINESS AND MANAGEMENT

Department of Organization Management

by discipline: Fundamentals of Management

Topic: "Business planning of investments 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. level 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.

Investment planning is an important part of a business both at the very beginning, at the stage of a business plan and when it is already working. The implementation of a business project covers the period from the decision to invest it to the start of commercial production. Planning investments and future cash receipts and expenses makes it possible not only to evaluate investment projects, but also represents a document that must be executed, regardless of the form of ownership of future production. The relevance of this course work is justified by the fact that in the course of their operating activities, many companies, having sufficient development potential, do not have the resources to ensure their operating activities, and therefore enterprises and organizations need to attract external financing and investment. Tasks that were in writing this course work: consider the theoretical foundations of business planning in an enterprise;

to reveal the main stages of development and methods of evaluating investment projects;

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Chapter I. Theoretical aspects of the structure of a business plan

1. Concept and objectives of a business plan

1. Content and structure of a business plan

Chapter II. Analysis of a business plan on the example of a manufacturing enterprise LLP "Agroproduct"

2. Brief information about the company, product characteristics

2. Analysis of investment needs. Production plan

2. Main and potential competitors. Marketing strategy