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Good investment plan from financiers' point of view Dr.sc.ing. Ilze Puriņa Chairperson of the Board Latvian Environmental Investment Fund. What convinces financier . You have to show:
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Good investment plan from financiers'point of view Dr.sc.ing. Ilze PuriņaChairperson of the BoardLatvian 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 abit 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