The investment phase of the project is its implementation and completion. It is accompanied by a large amount of consulting and engineering work, which are an integral part of management. This phase of the project is a set of certain stages. Allocate a definition, legislative, financial and organizational components.
general information
The investment phase of the project deals with the creation. Within its framework, the facility is commissioned and prepared for further operation. But for this it is necessary to solve such questions:
- Establish the legal, financial and organizational basis for the existence of the project.
- Get the land.
- Buy and get or create the right technology.
- Carry out all the necessary research, research and expert development.
- Take care of the technology documentation.
- Design, manufacture and test product samples.
- Conclude contracts, including for participation in tenders.
- Carry out construction work.
- To purchase, manufacture and install technological and other equipment.
- To develop and create industrial equipment and special tools.
- Carry out a pre-launch promotion.
- To form the administrative apparatus of the organization.
- Recruit and train staff.
- Put into operation and start up the enterprise.
As you can see, this phase of the project is hard and long work.
What details should you always keep in mind?
Considering the concept of "investment project", it should be noted that absolutely all the important points in the above list would not fit. In addition to them, it should be mentioned about the presence of:
- The organizational base necessary for the implementation of the project.
- Get the technology. Particular attention is paid to general engineering design.
- Construction, installation and commissioning.
- There should be a detailed engineering project and contracting, including the need for proposals, negotiations and cost estimates.
- Pre-production supply should include moments of supply security.
- It is necessary to carry out preparatory work to select the location of the company.
- You should take care of a wide range of information about all possible costs.
But the investment phase of the project is not limited to this.
Cost determination
When the project price is just being considered and determined, it is very important to pay attention to various proposals for the necessary groups of goods and services. This applies to materials, equipment, components and similar objects. It is advisable to choose from a fairly large group of external and internal suppliers, which can be judged as reliable partners with good discipline.
Negotiating and contracting to achieve the desired result make it possible to reinforce the agreements with legal obligations that arise from the object of attention. This may be the acquisition of technology, the construction or reconstruction of buildings, financing, the purchase and installation of machinery and equipment. In practice, this is expressed in the form of signing contracts between the entrepreneur / investor with suppliers of raw materials, consultants, financial institutions, architects and other persons performing the necessary work.
About construction and personnel
As an alternative, this may also mean the reconstruction or creation of a new facility. This does not change the essence of the matter. Initially, it is necessary to prepare the location of the future facility. Then the installation and installation of the required equipment is carried out. To avoid unpleasant surprises, they are accompanied by diagrams, instructions and work programs.
The costs of the investment project are not limited to this alone. The beginning of recruitment and training of personnel should coincide with the time of construction. It should be noted that sometimes this can be decisive in the effective start of activities and productivity growth. On the shoulders of the recruited personnel lies the implementation of the previously calculated production, promotion and supply of created products.
Launch and control
The investment phase of the project ends when it begins to work. The launch is usually a short step, but this does not reduce its technical importance in the implementation. After all, it is he who is the very important connecting link that connects construction and operations.
When success is achieved at this point, we can talk about the effectiveness of planning and project implementation. Without this, it is difficult to enjoy high performance.
But just starting up is half the battle. To track performance and maintain overall profitability, you need to compare forecasts with real data. If necessary, corrective changes should be made within the framework of the possible to achieve the project goals. Although it should be noted that the control itself does not apply to the investment phase - it follows it.
Activity specifics
As an old saying goes: “Victory loves preparation.” Therefore, it is necessary to pay a lot of attention to the development of the investment project was carried out efficiently and reliably. And there is a problem. Very often, an investor does not want to spend a lot of time and money on a detailed feasibility study. This sometimes results in failures in the implementation process and a rise in price in the long run. The time spent on exploring strategic markets, technical, managerial, territorial, financial and organizational alternatives, as a rule, pays for itself many times. Due to limited resources, their effective use is relevant. Therefore, from the point of view of rationality, it is necessary to perform the following tasks:
- If the volume of investments that will be directed to the implementation of the project has already been set, then it is necessary to try to achieve the maximum effect from their use.
- Subject to agreement on the result that needs to be obtained, one should look for ways to minimize the costs incurred by available investment resources.
And a little about efficiency
So the concept of "investment project" is considered. Now let's move on to the second part of the article and talk about what constitutes economic efficiency. In short, this is a category that is used to reflect the conformity of an implemented project with the interests and goals of its participants. Successful implementation allows to increase the gross domestic product of the country, which is divided between a group of agreed persons. These may be owners, shareholders, employees of enterprises, banks, budgets of various levels and so on. The economic efficiency of the investment project is determined by revenues and costs. It should be noted that in this case a rather substantial variety stands out.
Types of Efficiency
How to evaluate an investment project? The examples below will provide an answer to this question:
- Efficiency in general. This approach involves working from a commercial and public perspective. Moreover, in both cases it is always necessary to focus on the point of view of the participant who is engaged in the implementation with the involvement of his own funds. At the same time, the aim is to find sources of financing and determine the attractiveness of the topic for potential partners. Perhaps someone will be attracted by the social (socio-economic) and commercial outcome.
- Effectiveness of participation in the project. Companies, its shareholders, leasing companies, banks can join. Each representative of these groups independently decides whether he should take part in the project based on the benefits received and the payback period.
A little more about efficiency
It often happens that a project to some extent affects the interests of higher-order structures, such as a region, industry, and the like. Their feature is that they can very significantly affect the effectiveness of the project. We should not lose sight of the social significance of something, so we can work out an option with support from local, regional or federal budgets. All this allows increasing its efficiency from the point of view of the investor.
It should be noted that the presence of several participants, the divergence of their interests, different attitudes towards priority often affect the result. Consider a small example. The investment project is implemented by the company with borrowed funds. It is ready to take even the risk for more profit. Whereas the lender is interested in having his funds returned with the agreed percentage.