The concept of investment
If you plan to develop your business, company or have already started this process, you will need the funds, on the basis of which will develop new business. But due to the specifics of certain types of activities, the most common method of obtaining financial assets - Bank loan - could prove disastrous. Banks often invest their savings in a stably developing promising organizations with a proven credit history, rather than risky, from their point of view, venture projects. In this case, the investor should be sought in other areas. In what exactly? Before you jump to the answer to this very practical question, I would like to clarify the understanding of the theoretical basis of such economic terms as «investments».
Investments - long-term investment, the main objective of which is to further obtaining of the profit. Earlier this term was substituted for the concept of «gross capital investments», meaning the one-time cumulative expenses for the reproduction of fixed assets. But investments are broader sense. They are divided into several main types of state - owned, and foreign, private, production and intellectual. The quality of the investment may make cash (Bank deposits, shares, securities), property rights (right of use of land, natural resources), movable and immovable property (buildings, equipment), as well as intellectual values (licenses, patents, copyrights). But all of these types of investments are United by one set of conditions: the money invested in the business process, should hereinafter bring a return to a positive profit.
In the modern economy, investments play a key role. At the level of national and international business investments solve the problems of development and accelerate the rate of technical progress, re-equipment of enterprises, reduction of costs and improvement of quality of manufactured products, as well as social and environmental problems. That is, at the macro level of investment is the basis of development of economy and improvement of people's quality of life.
At the level of individual enterprises investments, in fact, play the role of the financial support of the enterprise, which prevents the emergence of crisis situations (wear of the equipment, an outflow of employees, reducing the quality of the manufactured products) and makes it competitive and profitable. In aggregate, these separate subjects of the economic life of the country form the overall level of welfare.
That is, the investment is a necessary element of business at the initial stage. But their views are diverse, so the businessman it is important to choose one of them the best option for your project, previously having analyzed all the rest. From this choice depends on the effectiveness and the impact in the future.
Come back to the question which was asked in the beginning, where to find an investor for your business. The first thing that comes to mind - it's banks. But these financial institutions have often invest their funds in the development of large and medium-sized enterprises, which have a good reputation on the market and a proven credit history. They are seldom addressed in investment in start of business, as the latter may be unreliable and out of business in a short time, or to bring a small profit. Besides, the enterprises themselves will be responsible for the payment of interest in a certain time frame, which in itself for a beginner is hard enough. Business not only can not generate income for the first few years, but also to be detrimental.
What in such a case, the type of investments is the most optimal for beginning business or venture project? This equity participation in the capital, which can help to solve many problems at the stage of formation of the business. In this case, the company may not worry about the urgent return of cash investments and to concentrate on improving the efficiency of their production, product quality, and the financial benefits. Moreover, in many cases, the partner can provide not only financial, but also the strategic support in the marketing policy, the personnel management, search of clients and other aspects. This is the easiest and most efficient way of investment at the beginning. In the future, when it will be possible to make predictions about the development of the enterprise and calculate its efficiency and attractiveness of the business for banks will increase, and with it, the possibility of granting a loan. When growth opportunities will become evident, and the business more attractive to investors, the company's average hand you can reach on the market of securities. You can organize the issue of the shares on the stock exchange, and can attract bonded loans. At this stage of an investment in a business, as a rule, the greatest, but will require more transparency of your business.
Who can become your strategic business partner? It can be as familiar to you people with the necessary means, managerial qualities, and most importantly, your confidence, and third-party organization. With the first option, everything is obvious, the main thing - to be a hundred percent confident in your partner. The second is more difficult: what companies can invest in joint business with you? Firstly, they could be the investment funds that support the development of small and medium-sized businesses. Today, these organizations are supported by a government or large investment companies. They develop a special program for support of entrepreneurship, promote the cooperation of third-party organizations, play for tenders for long-term projects. To obtain investment support of such funds, the need to carry out the quality of preparatory work: make the presentation of your project, to prepare a thorough business plan, calculate the future profits and risks.
Also your partner can be any other large company, which bought out the share of business and thus will provide the necessary investment of the enterprise. Of course, this should be an organization working in the same field of business as you do. In order to attract the interest of an investor, you should find a possible point of contact. For example, it may be a new technology of processing of production of the materials, or any other innovation, which is a partner in the future be able to apply in practice and win the competition.
Also stake in your company, in principle, be able to buy and the Bank, however, in this case, he, most likely, will act in the role of a holding company or an investment Bank, in fact Recalling a mixture of banking and industrial capital.
This is the optimal variants of the sources of investment for the initial phase of the business. But do not forget that the investments will bring profit only, being in the hands of a talented Manager, who will refer them to the implementation of promising projects.
