Investments – the long-term capital investments which main objective is further receiving profit. Earlier this term was replaced by concept of «gross capital investments», meaning one-time cumulative costs for reproduction of fixed assets. But investments carry wider sense. They share on some main types – state, foreign, private, production and intellectual. As investments money (bank deposits, shares, securities), property rights (using the earth, natural resources), personal and real estate (buildings, the equipment is right), and also intellectual values (licenses, patents, objects of copyright) can act. But all these versions of capital investments are incorporated one set of conditions: the means enclosed in business process, should bring further return as positive profit.
In modern economy of an investment play one of key roles. At level of national and international business of an investment solve problems of development and acceleration of rates of technical progress, modernization of the enterprises, reduction of expenses and improvement of quality of made production, and also social and environmental problems. That is at macroeconomic level of an investment is a basis of improvement of development of economy and improvement of quality of life of people.
At level of the separate enterprises of an investment, actually, play a role of financial support of the enterprise which interferes with emergence of crisis situations (to wear of the equipment, outflow of employees, decrease in quality of made production) and does it competitive and profitable. In aggregate such certain subjects of economic life of the country form its general welfare.
That is investments is a necessary element of business at the initial stage. But their types are diverse, therefore it is important to businessman to choose from them optimum option for the svy project, previously having analysed all the others. Efficiency and return size depends on this choice in the future.
Let's return to a question which was set at the beginning: where it is necessary to look for the investor for your business. The first that occurs are banks. But these financial institutions put the means in development of the large and medium-sized enterprises having good reputation in the market and checked credit history more often. They seldom decide on investments in starting business as the last can appear unreliable and burn through through short time or bring small profits. Besides, on the enterprises responsibility on payment of percent in certain terms that in itself for the beginner rather hard lays down. Business not only can not bring the income the first some years, but also to be unprofitable.
What in that case the type of investments is the most optimum for starting business or the venture project? This individual share in the capital which presumes to solve many problems at a stage of formation of business. In this case the company can not worry about urgent return of monetary investments and concentrate on increase of efficiency of the production, quality of production and financial return. Besides, in many cases the partner can render not only financial, but also strategic support concerning marketing policy, to human resource management, search of clients and to other aspects. It is the simplest and effective way of investment at the beginning. Further, when it will be possible to do forecasts about development of the enterprise and to count its efficiency, appeal of business to banks will raise, and with it and probability of issuance of credit. When possibilities of growth become obvious, and business – more attractive to investors, the mediocre company can leave on securities market. It is possible to organize issue of actions at the exchange, and it is possible to involve bonded loans. At this stage of an investment into business, as a rule, the greatest, but will demand additional transparency of your business.
Who can become your strategic partner in business? It can be as the people familiar to you possessing the necessary means, administrative qualities, and the most important, your trust, and the foreign organizations. With the first option everything is obvious, the main thing - to be sure for hundred percent in the partner. With the second – it is more difficult: what companies can be enclosed in joint business with you? First, the investment funds keeping development of small and average business can become them. Today such organizations are supported by the government or large investment companies. They develop special programs on business support, promote interaction of the foreign organizations, play tenders for perspective projects. To get investment support of such funds, it is necessary to carry out a qualitative preparatory work: to make presentation of your project, to prepare the careful business plan, to count future profits and possible risks.
Also your partner can become any other large company which will redeem a business share and by that will provide necessary investment of the enterprise. Certainly, it should be the organization working in the same area of business, as you. To interest the investor, you should find a possible common ground. For example, it can be new technology of processing of production materials or any other innovation which the partner can put further into practice and win in competitive fight.
Also a share in your company in principle can buy and bank, however in this case it, most likely, will act as the holding company or investment bank, in fact reminding a mix of the banking and production capital.
These are optimum options of sources of investment for the initial stage of business. But don't forget that investments will make profit, only being in hands of the talented manager which will direct them on implementation of perspective projects.
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