A business project is a business plan, established on the basis of careful research of internal and external factors in a comprehensive manner, with the aim of making the project's objectives achieved with the highest efficiency.
Project Classification
Based on the level of complexity, there are two types of projects:
– Project in the form of a program, operational plan. In small and medium enterprises, projects of this type are often simple, and also occur frequently, such as: preparing to organize a shareholders' meeting, organizing a customer conference, a new market development program, a public campaign to promote the company's image, etc.
– A project is an investment plan in a certain field, such as: equipping new technological lines, developing the company's scale, etc. In small and medium-sized enterprises, the organizational structure often does not have a department specializing in project research and project appraisal. When faced with complex investment projects that require strict procedures and compliance with the law, as well as to have enough necessary information, enterprises often hire outside consultants to research, establish and appraise investment efficiency.
The contents of investment project establishment and analysis include:
- Project product – market
- Technology
- Project financial information
- Financial analysis of the project
- Analyze the financial safety of the project
- Analysis of socio-economic efficiency of the project
Estimate initial costs
- Licenses
- Decorate and Renovate
- Equipment installation
- Purchase equipment
- Buy machinery
- Installation costs
- Rent
- Electricity, water, telephone bills
- Money to buy raw materials and supplies
- Initial advertising and promotion costs
- Pre-Operating
- Reserve funds to deal with unexpected events
- Other costs
