Some guidelines to help you plan better
The Business Plan is the starting point for a detailed discussion between us. The Business Plan will clarify some open questions and open up new aspects to be investigated further.
The main purpose of the ‘business plan’ is to answer the following questions:
- Adding value in the market: Is the business case economically attractive when fully implemented, and how long will it take to become attractive?
- Project Description: What processes, where, how much, to whom?
- Existing market structure and market trends
- Sales and expenditure budget for the next 3-5 years of operations
- Expected investment sum and a breakdown of the investment according to assets
- Cash flow forecast
Value chain design:
What is the flow of goods and money like (visualization of the ‘value-flow streams’) between the various legal entities, owners, customers and other stakeholders involved?
Mapping by numbers, drawings and text of the operational streams of goods/services and money:
- How exactly is cash generated and how is it spent?
- What is the flow of products and money like throughout the chain?
Proposed ownership structure and mapping of how the various legal entities and (financial) partners are connected
What are the environmental benefits to be derived from the project – directly or indirectly – compared with the baseline situation?
- Reductions in pollutants compared with the baseline, i.e. the present situation. NEFCO’s main environmental indicators are CO2, NOX, Black Carbon (soot), other GHG, P and N.
- Description and quantification of energy efficiency, fuel use conversion, emission reductions or other activities that improve the existing situation on the market
Is the company capable – financially, technically and skill-wise – to execute the project successful?
- Project owner’s annual accounts (Profit and Loss StatementP/L, Balance SheetBS and Consolidated Financial Statements, the financial statements of a group in which the assets, liabilities, equity, income, expenses and cash flows of the parent and its subsidiaries are presented as those of a single economic entity. [IFRS 10:Appendix A][IFRS 10: Appendix A]CFS) for the last 3-5 years
- Basic company description and history
- Timetable for the investment and previous experience in the field or of similar projects
- CVs of key employees
Rules and regulations:
Which important local laws, rules and regulations (possible cut-off factors) affect the business operations?
- GOST, certifications, approvals, requirements, ownership rights, duties, etc.
- Risks: What are the risks and how can they be mitigated?
How does the investment support the company’s overall business strategy?
What are the Board’s and Management’s explicit strategic aims and decisions?
Raising capital/Financing Plan:
How and from which sources should the project’s total investment be financed?
- Sources, sums, type of financing (loan, equity, mezzanine), cost of financing