Thorough due diligence and detailed business plan preparation includes the calculation of risks and the expected effectiveness of the implemented project. This applies to the construction of metallurgical plants from scratch, modernization of existing production and other works.
PRE-INVESTMENT STUDIES
Pre-investment research as part of investment planning is required to create new or improve existing production. It is especially important to thoroughly research the risks and opportunities in a saturated steel industry.
The process consists of four main stages, each of which includes a number of activities:
- Preliminary express assessment of the project’s profitability and feasibility. It is carried out on the basis of generalized data from similar projects, without exact calculations with specific materials, suppliers and consumers.
- Pre-feasibility studies with a preliminary assessment of the technical and financial aspects of the project. If this stage shows low profitability of the project, then it will need to be adjusted.
- Preparation of a feasibility study for the project. It is a structured document that provides detailed specifications for all aspects of a project.
- Final assessment of the project and making investment decisions.
Final investment decisions can be made through research. In addition, the order and number of required research stages depends on the specifics of a particular project.
Thus, detailed due diligence of the project optimizes costs and reduces risks, although they require additional funding. The completeness of the assessment depends on the depth of research and the specifics of the project.
CREATING A BUSINESS PLAN
A well-developed business plan reduces risks when starting a new business. The same document convinces potential investors and creditors of the efficiency of the future enterprise. The finished document consists of a descriptive and calculated part.
The descriptive part includes an analysis of the sales market, a description of the production technology, the proposed marketing strategy and other analytical data required to launch the project. The calculated part is, in fact, the monthly financial plan of the project.
Thus, the finished document provides complete information about the future project. The specialists of Zavod Termolitmash LLC will develop a detailed business plan for the creation or modernization of your metallurgical enterprise.