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FDI expects the business plan to contain the sections and information described below:
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Section of the Business Plan |
Content |
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Executive Summary |
Introduction and conclusions summary: brief presentation of the enterprise and its environment, of its products, its market, its management, its shareholding, its financial position and performance, its long-term objectives, and strategy – Brief presentation of the project and its outcome in terms of contribution to the achievement of the long term objectives |
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Internal Diagnosis |
Analysis, in terms of strengths and weaknesses, of the basic managerial functions of the enterprise such as: production, marketing, finance and administration. |
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External Diagnosis |
Analysis, in terms of opportunities and threats, of the external, economical, political, legal, regulatory and competitive environment. |
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Long-term objectives |
Presentation et justification of the long-term objectives – Demonstration of the consistency of those objectives with the results of the internal and external diagnosis |
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Strategy |
Analysis of different strategic alternatives, based on the result of the internal and external diagnosis and the long-term objectives, and justification of the strategic choice. |
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The investment project |
Description of the investment project, in terms of components, specific objectives, cost, financing plan – Evidence of the consistency of the project with the corporate objectives and strategy. |
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Technical analysis of the project |
Analysis of the technical impact and/or justification of the technical choices, such as: location of the project or of the unit responsible for its implementation – production technology or process – machinery and equipment (type, origin, capacity, user-friendliness, robustness to face the local conditions, versatility - professionalism, experience and financial position of the suppliers)- raw material and other inputs (cost, quality, social and environmental concerns, reliability of the suppliers) –type of organization of the production. |
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Commercial analysis |
Analysis of the commercial impact of the project, or justification of the commercial choices, such as: market and market segments – product planning – price policy –distribution network and channel, type of distribution (intensive, selective, exclusive, direct) – communication strategy – organization of the sales force. |
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Organizational analysis |
Analysis of the organizational impact of the project, or justification of the new (if any) organizational and administrative choices, such as: departmentalization, organization chart, profile of the top management, job distribution, Management Information System (MIS), etc. |
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Financial Analysis |
Summary of data and assumptions – presentation of the projected financial statements according to different scenarios (base case scenario, worst case scenario, optimistic case scenario) – Analysis of the projected financial statements, according to different approaches, such as: differential approach (stemming from the comparison of the results with the project and without the project); global approach (after project analysis) – and according to different criteria, such as: accounting return on investment, financial leverage effect, payback period, net present value (NPV), internal rate of return (IRR), break-even-point, debt service coverage, minimum financial equilibriums. |
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Risk analysis |
Identification of the most important risks the project and/or the enterprise is exposed to, and the way they can be or they actually are mitigated: technical, commercial, operational, financial and contextual risks. |
Notes
1. That business plan guide is primarily designed for modernization/expansion project. However, by dropping the parties and/or sections related to the enterprise historical data, it can be used for creation projects as well.
2. The list of documents required, when submitting a financing request to FDI, (see page "Apply for a financing") is just an indication of what may be needed for supporting a financing request. Some of these documents may be irrelevant for some specific enterprises/projects - and additional documents may be required for others.
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