Anyone have a certain (quite large) amount of temporarily free funds, wants them not just lay in the corner, slowly devaluing under the inexorable "lady" of inflation, and were invested in a profitable business, thus constantly increasing.However, in order not to burn when investing money, it is necessary to analyze investment projects.About him and talk in this article.
analysis of investment projects - a reality check of their implementation, and to identify all possible risks of the project and the likelihood of their occurrence, carried out in order to take the adequate decision to invest or not nested in the capital of a particular company.A detailed analysis will help maintain available capital from unprofitable projects, and increase it as much as possible, to invest in the venture, which will bring the maximum profit with minimal risk.Development and analysis of investment projects are closely related, because the person that develops a project is to understand that the investor will be interested in how to choose the most advantageous offer for yourself.Herein lies the catch - some dishonest businessmen specifically "customize" the details of your business project for those who wish to see an investor, although they are different from real ones.That is why the investor who wants to make money, you must be able to conduct their own analysis of the efficiency of investment projects, to avoid becoming a victim deceivers.
The technique that is used in the analysis of the majority of business plans.For most investors, the determining factor in deciding on investment is the so-called future value of their investments, that is, in fact, the amount of funds they will receive at the end of the investment.This index is calculated taking into account the discount rate (in fact, the profitability of the project), as well as the factor of inflation, which inevitably devalues all attachments.If you figure the future value of an investor suits, he invests money in the company.
However, most often at the presentation of a business project the future value of investments already announced.Then you need to calculate the return index - the present value (also sometimes referred to as the net present).Its purpose is to understand how much money you need to invest today to get the amount promised in the future.
Through analysis of investment projects, entrepreneurs should focus on some basis for comparison in order to realize this project is profitable in these market conditions or not.Typically, the base of comparison in favor of bank interest rate on deposits.Why is it?Yes, because the available funds the investor can always invest in the bank, while securing a minimum riskiness due to the fact that the contributions are usually insured.Thus, in order to go on a greater risk, the businessman should be aware that the more dangerous project will bring a lot of money in the long term, rather than simply placing a deposit.Only in this case, you can expect to receive a positive response from investors - because who does not agree to take risks - not to see the splash of expensive champagne in a crystal glass!
We briefly describe how and why you need to carry the analysis of investment projects.Of course, in order to become a renowned expert of investment, you must read a lot of literature, but some general idea of the readers already have.Successful investment and huge profits to you, dear business!
