Investment project

In business projects it is important to keep the goal over time, at the beginning is easy but when pastime gets difficult to keep the aim. In these cases, I recommend making an investment project.

A good investment project should contain the following parts:

• Framework
• Problem
• Goals
• Hypothesis
• Market search
• Organize information, classification
• Pull relevant data
• Analyze and reading into
• Get relevant information
• Make conclusion
• Recommendations

An investment project is a guide to spend liquid resources to lead to future profits. Let’s see the meaning of each word to understand this concept more closely. First, investment means acquiring an asset in order to gain a future benefit. On the other hand, a project, in a few words, is a series of activities with three essential aspects; time, scope, and resources.

An investment project takes on special relevance when we want to control time, or scope or resources with exact detail. The best way to work is to develop the investment project before you can start working.

A good investment project has the following parts:

Framework:

It is the context where the project will be developed, it is important to know the most relevant aspects that can influence in a bad or good way the project.

Problem:

Problem is what we want to resolve. A good practice is to identify the problem and write it in a document, so we can review it in the near future.

Goals:

It is the point where we can say that we achieve to solve the problem that we identify in the past.

Hypothesis

The hypothesis is the bridge between facts, information, and our goals. In other words, hypotheses are several ways to solve a problem, we need to analyze all possible solutions to a problem, in this way we can choose the best.

Market search

A market searching is an analysis where we need to gather information about suppliers and buyers to know competition, idea scope, and possible risks. I like to analyze the market to know if the market is blue or red to know all the implications.

All the parts mentioned above are an investigation stage, and we can use some extra tools, for example: PESTLE, fundamental analysis, technical analysis to mention someones (if you want to know more you can check them here). The next step is to analyze information. We can organize the knowledge in the following common patterns:

• Chronological order: When we use time to organize our ideas.
• Order of importance: This organizational pattern arranges ideas by rank.
• Comparison and contrast: it is when we want to show differences among ideas or similarities.
• Cause, effect: it is like the relationship among ideas.

This structure is useful to analyze information easily. After we have all the knowledge in a clear way, we can choose the most important idea to use in the near future.

Analyze information

In this part, we must write all conclusions based on the information that we have been working on previously; keeping in mind where are we? (Framework) What do we want? (Problem and goal) How to achieve (hypothesis). In this point, we analyze and choose the best hypothesis to solve and accomplish our goal. We can use stadistical tools to structure information.

Relevant information from the analysis

It is very common that we get several possible solutions, and it is a good practice to have at least three scenarios to work, and it is useful that the solutions are writing in project documents to be consulted in the future. The three common scenarios are: pessimistic, real an optimistic. Theses three scenarios we also help us to negotiate.

Conclusions

The end part of all searches are the conclusions, in this part we write all the key points to develop the project. We can watch if the project is a good, reachable, profitable, or is better not to carry it out.

Recommendations

During the development of the research, we may find interesting points that we may make in the future after completing the first project investment that in the beginning we want to start.

In conclusion, an investment project is a set of studies developing in a well-known and well-analyzed work environment, so verify if a project is profitable.