Plan of businesses (Part 6): The study of the investment and financing

After the organization, the following part or section of a plan of businesses is the study of the investment and financing, which indicates the structure of the investment, and describes the related aspects to the financing.

The objective of the part of the study of the investment and financing is the one to show the reader which will be the required capital to put into operation the business, in what this capital will be used, and how it will be obtained or it tried to obtain.

The part of the study of the investment and financing would have to contain the following elements:

Fixed investment

In this point we make a list of all the fixed assets (necessary elements tangible for the operation of the company that is not for the sale) which we are going to require, and the value of each of them.

Assets we can divide the fixed them in:

• Furniture and equipment: it includes the diverse furniture and equipment such as, for example, tables, chairs, writing-desks, shelves, computers, printers, telephones, cash registers, calculators, extinguishers, etc.
• Machinery and equipment: it includes/understands the necessary thing for manufacture of the product or the benefit of the service, for example, machines to sew, cutting, drills, winches, soldering irons, tools, etc.
• Vehicles: it includes the necessary vehicles for the transport of the personnel or the merchandize of the company.
• Lands and buildings: it includes lands, buildings, constructions, infrastructure; as well as the investment required for the implementation of the premises (facilities, painting, finished, preparation, decoration, etc.).

Intangible assets

In this point we make a list of all the intangible assets (necessary elements intangible for the operation of the company) that we are going to require, and the value of each of them.

Assets we can divide the intangible them in:

• Investigation and development: study of the project, investigation of markets, designs of the product, etc.
• Expenses of constitution and legalization: legal constitution of the company, obtaining of licenses, permissions, registries, etc.
• Expenses of beginning: selection and qualification of personnel, marketing of opening, promotion and publicity, etc.
• Unforeseen expenses: amount destined in case of emergencia.

Capital of the work

The capital of work is the money necessary to put the operation the business during the first productive cycle, that is the passed time since the operations of the business begin until the money in sufficient amounts like continuing is obtained operating normally without requiring of greater investment.

In this point we make a list of all the elements that will conform the capital of work, and the value of each of them.

The capital of we can classify it to work in:

• Attainable: conformed by everything what it can be stored, for example, raw materials or consumptions (when one is a producing company), finished products in process, products (when one is a marketing company), packages, equipment, etc.
• Available: required money to pay diverse services after these have been used, for example, municipal payment of basic services (water, electricity, telephone, Internet), remunerations (pays and wages), maintenance, tributes, etc.
• Indispensable: payments that are realized in advance; they are denominated indispensable, because one spends or invests in them, and soon demands the right to its use; they are indispensable, for example, the advance to suppliers, in front of the rent of the premises, the insurances, etc.

Total investment

The total investment of we obtain it to the project from the sum of the fixed investment, the intangible assets and the capital of work.

In this point we make a list of these elements, the amount required for each of them, and the total amount that add these.

Structure of the financing

In this point we indicated if the project will be financed in its totality with equity capital, or it will be required of some type of external financing.

In case of making use of external financing, in this point we must indicate what percentage of the total of the investment will cover the financing with equity capital, and what percentage will cover the financing with external capital; for example, we could finance the project in a 40% with equity capital, and in a 60% with external financing.

Financial sources

In case of making use of external financing, and beforehand knowing the source that will grant the credit to us, we must develop this point where we will make a brief description of the source or outsourcing of this financing; for example, we can make a brief description of the bank or financial organization that will grant the credit to us, and the conditions or requirements that it has asked for to us to be able to grant it to us.

In this point also we must indicate the characteristics of the loan, which will be the amount that will be obtained, the term that the loan will last, its cost (interest rate more commissions), etc.

And, finally, we must make a picture where we indicate the quotas that we will have to pay during the period of time that lasts the loan (estimated of the payment of the debt).

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