Development of the financial model of the project

Subject offers

APP-Invest offers a package of services for the development of an individual business plan in the form of a financial model for an investment project.

Business plan offered as a service, this is a business plan that includes a brief description of the main sections of the project. An alternative name for such a business plan is a financial model of an investment project.

Such a business plan is suitable for a company planning to obtain a loan or investment in its project, at the stage of starting negotiations with an investor or a creditor.

Cost and timing

The cost of developing a financial model for an investment project is individual for each investment project. Those the price of developing a business plan is negotiable.

To guide the company’s customers regarding the pricing policy of APP-Invest in relation to services for developing a business plan, 300 USD is taken as the base average cost of services in this package.

The period of execution of work on the development of a business plan also depends on the task assigned to APP-Invest specialists and the time frame required to obtain initial data from the Customer for develop a financial model of the investment project.

The base period for the preparation of a business plan (financial model) in this package of services is – 10 working days.

Determining the final price and time for developing the financial model of the investment project is possible at the time of concluding the contract for the provision of services, with a clear definition of the final volume and content of work.

Advantages and disadvantages of the service package

The presentation of the draft in brief form, facilitates the promptness of the negotiations. So, for example:

  • The customer for investment or credit, does not spend unnecessary time preparing an investment justification in an extensive version that includes in-depth study of the risks and organizational nuances of the project;
  • The investor or the lender receives the basic information allowing him to make a decision on financing the project or negotiating the project in principle;
  • the brevity of the presentation of information facilitates the rapid processing of information by all parties, perhaps even for several hours, which allows maintaining an intensive dynamics of negotiations

The practice of conducting negotiations with investment funds, companies, banks shows that at an early stage of negotiations, it is the short form of the business plan that is acceptable. Moreover, the Investor or Lender is more willing to study a small plan than sit down to study the huge.

If project is financially not large or even average, that is, the amount does not exceed 100,000. USA, the presentation of the project in in the format of a financial model – the best choice, because taking into account the specifics of the project, most likely the greater presentation will not be required. In 80% of cases, such projects are sufficiently typical and monotonous, or their detailing will require the study of the micro-economic indicators of the project.

For “special” small projects involving technological innovations or other features that are not understood by a wide range of potential investors, the project should be detailed – but not to bring this event to the point of absurdity (not every investor will want to read a project in which the main task is to buy a hammer and a nail).

Those the main disadvantages of the financial model include the incompleteness of information that is not included in the main content due to the short form of the document. As part of this presentation, essential details may be omitted that affect the feasibility of the project and its implementation as a whole.

Service subject

Using the package of services offered by APP-Invest to develop an individual business plan, you will get an optimal business plan allowing successful negotiations with the investor. planning of APP-Invest will significantly facilitate and simplify the procedure and negotiations with the investor.

As part of the service, APP-Invest specialists:

  • hold specialized consultations regarding the business idea of the investment project and preparation of the initial data for the development of an individual business plan;
  • will develop an individual business plan (financial model of the investment project), taking into account all the necessary actions for this: analytics, market research, preparation of financial calculations with the payback of the investment project, etc .;
  • help the client of the company in negotiations with a potential investor;
  • they will hand over the finished business plan of the investment project.

Differences between the financial model and the comprehensive business plan

The financial model is an excellent tool for negotiating with potential investors or lenders at the pre-investment stage of the project.

The investment project described in the form of a financial model contains all the key information that allows you to quickly decide on the feasibility of investing in an investment project. Of course, as the amount of the investment project increases, the need for a more detailed study of the investment project increases.

The financial model may not include a number of special sections of the business plan, such as production calculation and market research, or include a short part of such calculations to form an understanding of the project as a whole.

The main task facing the financial model is a short summary of the project and the payback period, while the task of the business plan is to comprehensively study the project as a whole, or even prepare a specific guide for step-by-step implementation.

Content of the business plan in the service package

The content of the business plan is modified and specially selected for each unique project. For a constructive dialogue with an investor or a lender, the business plan should include: a description of the project, a financial and organizational plan. If these sections are available, the cost of the project and its essence will be clear, that is, an integral investment proposal will be formed.

If you order the experts APP-Invest development of individual business plan in the format of a financial model, You get a business plan with a short description of the sections of the investment project:

  • project description;
  • economics and organizational plan of the project;
  • description of the benefits of the project;
  • project engineering.

To estimate the cost of developing a business plan, you must fill out a questionnaire.

Stages of service implementation

Fundamentally, as part of the service, you can consider the following steps:

  • pre-contract, including consultations, preparation and conclusion of a contract for the development of a business plan, preparation of tasks for development, etc .;
  • preparation and transfer of baseline data for the development of a business plan, including consultations in the required volume;
  • development of a business plan;
  • acceptance and transfer of the finished business plan to the Customer;
  • negotiations with the investor (as APP-Invest specialists accompany their clients throughout all the negotiations that clients conduct with the investor or lender, both during the development of the business plan and after development, helping to successfully complete the negotiations and receive financial resources).

Detailing the development stages is not critical for this package of services, since it is aimed at preparing the document as quickly as possible, to initiate negotiations on investing in the project.

Special and additional conditions regarding the development of a business plan

In the framework of developing a financial model, there is basically no need for additional costs or other special conditions, and therefore, by default, such costs are not provided.

If they arise, all the necessary conditions will be provided for in the contract.

To receive consultations about issues related to the development of a business plan, or on other issues, you can contact APP-Invest’s specialists on contact information.

APP-Invest conducts free consultations for its clients on issues arising in the process of developing a business plan and on issues related to obtaining financial assets (investments, loans).

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