Business related to investment is a type of activity that involves investing funds from interested persons. For example, a person who has free money can use them for playing on currency exchanges , put them at interest to the bank, and can invest their money resources in an activity that, if fortunately happens, will bring him profit only because these funds will be used.
At present, the economic market is full of enterprises and organizations that are ready to invest (invest) their funds in various projects.
Advantages and disadvantages of investment business
The economic market abounds with enterprises and organizations that are ready to invest (invest) their funds in various projects.Investment business is first and foremost an opportunity to earn not by your own labor, but to profit from the income of another company in which funds are invested. As a rule, the investment company generates good income for a large amount of investment.In case of the specified investment business this happens to be a very important matter.
The shortcomings of the investment business include the following:
Regardless of how profitable the enterprise, in which the funds are invested, with small deposits, the investor’s income after deduction of commissions may amount to insignificant sums. Thus, those who want to make a lot of money on investments must have a large starting capital.
Whatever the size of the capital, the investor cannot influence either the course of production processes or the personnel policy of the company in which it invests. This makes the investment business similar to playing roulette, where you can stay in the black, and you can spend all your money for nothing.
The investment business plan of an enterprise is a document whose purpose is to provide the information necessary for the development of a strategy for the implementation of the project. A competent approach to drawing up an investment business plan ensures the success, durability and profitability of the enterprise.
What is an investment business plan for an enterprise?
An investment business plan is one of the most important documents required in the sphere of business planning.
Enterprises prepare it with the aim:
Adapting the foreign practice of creating investment projects to the conditions of the Russian economy (with an analysis of the necessary documentation and methodological guidelines necessary for doing business).
Realize a real assessment of the project in terms of profitability and payback.
Based on this information, one can arrive at the following conclusions:
- An investment business plan is necessary to obtain a loan abroad.
- An investment business plan is needed in order to convince investors of the prospects and benefits of cooperation with the enterprise.
An investment business plan is used inside the organization to give staff an idea of the company’s overall goals and the methods by which they will be achieved, the ways of interaction between different departments, etc. In other words, the investment business plan provides a comprehensive view of the activities of employees.
The investment business plan serves as an argument that allows documenting the organization’s needs for equipment provided under the leasing contract.