good investment plan from financiers' point of view dr.sc.ing. ilze puriņa chairperson of the...
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Good investment plan from financiers' point of view
Dr.sc.ing. Ilze PuriņaChairperson of the Board
Latvian Environmental Investment Fund
What convinces financier
You have to show:
• that you understand specifics of the market where you operate – factors that influence your company's income and costs
• that you know what you own and how to manage it:– how your company and technical system works from technical and financial point
of view– which are the main risks in it and how you manage them
• realistic assessments – cost and income side, risks and mitigation of them
• that you know what and why do you want to do
Good business plan
• Development vision
• Balanced cost side and income side
• Justified technical solutions
• Implementation and further management capacity
Development vision
• Vision – not from today's perspective but from long term perspective
• Don't make business plan for financing source – to get money, but for your needs!
• Question to be asked – do we really need to implement this project:– it is not ad-hoc idea but part of long-term strategy– it is not done only to take financial resources available
• Always find cooperation partners – customers and municipality
Balanced costs and income side
• Income side – be a bit more pessimistic than you think – will be more, will be better!
• Costs side – be a bit more sceptic – will be less, will be better!
• Critical risk aspects in your assessments:– number of clients – today and in future – average consumption m3 per client – losses
Technical solutions
• Realistic in assessment of capacities need – again not from today's but from tomorrow's point of view
• Investment costs and operational costs
Implementation and further management capacity
• Project implementation capacity – investor should be sure that you will be able to plan and supervise implementation of the project – from financial and technical point of view – good if your staff has done something similar before!
• Further management capacity of new equipment installed:– investments should bring expected benefits – improved quality of drinking
water etc.– you should have:
• professional staff • good monitoring system – beginning for new projects
Key question
Would you give money
– if it would be your money –
for investment in this project
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