INVESTMENT PROJECTS, BUSINESS PLANS

Investment processes are a key part of managing the finance of the enterprise. They frequently have a major impact on the future financial condition and profitability of the company. Therefore, it is important that they be run thoughtfully. Success in performance of an investment project requires work at the preparatory stage, during implementation as well as after the implementation. Each undertaking should be preceded with an analysis of its profitability with consideration of the risk it is burdened with. Information and analyses of that sort are useful at the stage of making right decisions as to the growth of business. Their presentation is often a prerequisite for acquiring capital in the form of a bank loan, lease or subsidy. A well-prepared business plan should not only be well thought-out, concise and complete, but it also needs to convince the reader that a given undertaking has been prepared professionally and so that its financing bears a low risk.

You if you are getting ready to make investments the scale of which is considerable from the point of view of the business you conducted so far, it is worth carefully analysing not only the expected yield from those investments, but also the risk they bear. This is particularly important under ever-changing conditions of the economic environment. Therefore, you should assess the sensitivity of the profitability of the undertaking to changes in the environment. At this stage, we will help you assess the profitability of investment which is expected and in the situation where there are beneficial and adverse changes in the environment, including the determination of profitability thresholds below which the investment may be economically ineffective.

When acquiring capital from financial institutions, it is required to have documented good preparation of the investment project. Depending on the complexity of an undertaking and its size, financial institutions require less or more complex studies. Usually, mere presentation of assumptions as to expected revenue and costs is not enough. In most cases, the analysts reviewing bank loan applications expect that we present projected profit and loss account, cash flow statement and balance sheet. At this stage, it is very important that all projections be 100% consistent with the assumptions presented in the description of the business plan, bank loan applications or even in e-mail correspondence with bank representatives. This is so as the lack of consistency between the presented data undermines the reliability of the entire study, which can even lead to the application being dismissed.

If you need help in professional preparation of you business plan, preparation of projections or supplementation of bank loan documentation, we invite you to enjoy our services. We have experiences in terms of both financing institutions and financed entities. We understand the needs and requirements of both sides and so we can help you prepare the assumptions and their reliable presentation.