Definition of
Investment project
A project (from Latin projects) is a set of coordinated and interrelated activities that attempt to fulfill a specific purpose. In general, a period of time and a budget are established for the fulfillment of said purpose, so it is a concept very similar to plan or program.
A investmenton the other hand, is the placement of capital to obtain a future profit. This means that, when investing, an immediate benefit is given up for an improbable one.
- What is an investment project
- Related studies
- Related Topics Tree
What is an investment project
An investment project, therefore, is a proposal for action that, based on the use of available resources, considers it possible to obtain profits. These benefits, which are not certain, can be achieved in the short, medium or long term.
Every investment project includes the collection and evaluation of the factors that directly influence the supply and demand of a product. This is called market study and determines which segment of the market the project will focus on and the amount of product that is expected to be commercialized.
The investment project, in short, is a plan to which capital and material, human and technical inputs are assigned. Its objective is to generate an economic return over a certain period of time. For this, it will be necessary tie up resources in the long term.
The stages of the investment project involve the identification of an idea, a market study, the decision to invest, the administration of the investment and the evaluation of the results. The project itself is usually evaluated by different specialists.
It can help you: Data collection
Related studies
From another perspective, the four types of study that make up a project of interest are:
* A market study: it is formed, in turn, by several stages, having in the first place the detailed definition of the product or service that is intended to be developed and offered. After having found the identity of the project, it is necessary to ask yourself if there is a level of demand that justifies its realization; On the other hand, if it is a revolution, then the question will be whether it could have a positive impact on the portion of society to which it is addressed. After this part, comes the investigation of potential competitors and the characteristics of their offers, such as their success, prices and their sales history and presence in the industry;
* A technical study: it is dedicated to determining the way and the resources with which the production will be carried out, going through the physical space that will be used for this purpose, the best options to obtain the raw material, the machinery, the methods of work and the ideal profile of the employees to whom this stage will be assigned;
* a financial study: the budget must not be forgotten, since in order to reach a decision regarding each of the points just exposed it is necessary to evaluate the inevitable economic impact. And this is the study that is in charge of carefully analyzing the feasibility of the project and decides if it can continue or if it is convenient to redesign the strategy to avoid considerable losses;
* an organization study: as the name indicates, it is about finding the best way to start the company, finding the right means to bring to reality all the ideas that have been evaluated and accepted up to now.
It should be noted that in a work team it is possible to clearly distinguish between the creative and administrative departments, and that their communication must be clear and constructive to achieve objectives that satisfy everyone; the most common is that the final product differs considerably from its initial conception, given the results of the four recently detailed studies, for which it is necessary to keep the spirit of the creatives alive, while asking them to make changes to their projects profitable and safe ideas.
See also: Income budget