Investment projects as a form of the firm

There are two models of the firm: classical and innovative (venture capital, the most risky). The first (classical) model - a traditional, re-productive (or routine), expanded reproduction, when accompanied by a stable demand for maximum impact resources. In this model, the concept of the commodity ("more of the same"), the company realized primarily due to external factors (from subsidy to protectionism by the government), and only secondarily - by internal factors (modernization of technology and equipment, updating the product range, etc.). The second model - innovative development, suggesting new ways through the concept of increasing the efficiency of investment based on business processes having the most risky (venture) in nature. This model assumes a constant innovative changes through the planning and implementation of direct portfolio investments. Strategic development objectives in this case is to increase competitiveness and market value of the firm. A distinctive feature of the second model is that the first stage of its application forms a strong and active innovative idea, it worked out in detail in the business plan and reflected in practice by implementing an investment project. The business plan of the project, it is, in fact - his business card. It gives the investor response to the question of whether to invest in this investment, and under what conditions it will be most effective when allowed to investor risk and loyalty to the assumptions made by the developer of the investment project. A properly drawn up a business plan for the investment project is a prerequisite for obtaining bank loans. If the borrower does not exist, this indicates a low professional level of management companies, non-possession of his situation, and makes getting a bank loan is almost impossible, moreover, in the future the bank will evaluate the credit delivery to such enterprises, as more high-risk operation. This means that the bank, given the higher risk of loan default, be sure to increase the interest payments on the loan upwards, and credit, respectively - will be expensive and impractical. In order to ensure a consistent and systematic innovation, we need a lot of money, ie the investment. It is considered that the investment operation - a transaction associated with an investment of funds in the implementation of business projects that will provide revenue for periods exceeding one year. In practice, the following types of these investments: 1) physical (tangible) assets - industrial buildings and structures, equipment, machines, and 2) in financial assets - bank deposits, bonds, shares and other rights to receive cash from individuals and legal persons, and 3) in intangible assets - the value acquired by the company as a result of retraining programs or staff development, development of trade marks, acquisitions, licenses, etc. The problem of attracting investment, which can create a powerful impetus to the development of firms, worried about today, most domestic entrepreneurs. Investment required everyone gets them but not everyone. In the organizational and financial terms the sources of capital are classified as: companies' own funds (depreciation, revenues from sales of property retired, the mobilization of domestic assets, retained earnings and other cash savings), loans (bank loans, loans to financial and investment institutions, funds from the placement of issue of securities companies, the debt to creditors), centralized resources (budget and non-repayable investment preferential government loans), foreign investment (contributions to statutory funds and buy shares in enterprises, loans from foreign banks, and between international organizations and funds of individuals). Business plan to attract investors has its own specifics. The main objectives here is to convince investors of the benefits of investing in it for him represented an investment project. Business plan for an investor usually has a small amount, usually a 08/10 sheet and he has the character of a brief summary of the investment project. It should be submitted only goal, the results of market research project are required and available resources, expected results from its implementation, the main indicators and a brief conclusion of this summary The main objective of a business plan is investor interest and make him acquainted with the project in detail. Business plan for a loan is a prerequisite for the bank. This kind of business plan is different from the business plan for an investor in several aspects: business plan for the loan must show the need for businesses to finance a certain point and at a specified time, a potential borrower who wishes to obtain credit under the business plan must prove to the bank profitability for the company using borrowed working capital, business plan for the loan is aimed at, something to show a bank or other lender a high level of solvency, which means - an opportunity to extinguish a loan, and interest for its use. The bank usually will not be interested in details of the business plan, not directly related to the solvency and liquidity of the enterprise. His interest in the first place, the existence of an enterprise of serious collateral or guarantor. If the first condition is met, will be explored in accounts payable. Bank will be interesting, to whom and how much should the company, whether past due accounts payable and how long ago it was formed, the tendency to increase or reduce debt. The next question will be an expert on bank receivables company. Sometimes the bank security service will make inquiries and try to find out what part of the receivables is questionable to return. Recently, more and more popular in the implementation of innovative processes is attracting venture capital. Venture investing is risky long-term investment in new and fast growing companies in order to obtain higher profits after the sale of stakes in companies over time. For this type of financing is characterized by the ratio of "high income - high risk." Formally, venture capital investment is the analogue of the private equity investment, aimed at high-risk projects in earlier stages of development. In fact, this is a completely new economic relations in which the key role played by the involvement of the investor in the project management and transfer of business experience. Such investments are helping young companies to go through the "valley of death" that is, a period when profitability and, consequently, the very existence of the company are in question. In the Russian practice of venture capital is often referred to all private equity (private equity), regardless of the stage and focus. This point of view had a right to exist in the 1990s as a significant country risk allowed Russia attributed to "venture" any investments in Russian companies. Recently, the situation began to change, and a venture pony mayutsya only invest in early-stage companies. In the industry of private equity and venture capital has become common following the separation process of investment in the company on stage: Seed («early", "crop"): the company is in its formative stages, there is only a project or business idea, the process of creating a management team. Start-up («start", "start"): the company recently formed, has prototypes, trying to organize production and time to market. Early stage, early growth («early growth"): the company carries out production and commercialization of the finished product, although not yet have a stable income. Expansion («enlargement"): The company occupies certain positions in the market, it becomes profitable, it requires increased production and sales, conducting additional market research, the increase in fixed assets and capital. Exit («exit"): the stage of company development in which the sale of shares to a strategic investor or initial public offering on the stock market (IPO). Scheme changes required volumes, sources of investment and risk depending on the stage of development the company is presented in Figure 1. A special case of industrial investment is leased. At the same financial institution invests in the acquisition of objects of leasing, the lessee shall transmit them to a fixed term and receives interest income on lease, consisting of the actual rent, lease margins and the risk premium. The core of any leasing transaction is a credit transaction. The peculiarity of leasing is that on the one hand is the leasing of investment to return on fixed capital. In this case the conditions of maturity, repayment and interest payment. On the other hand, participants in the transaction operate on non-monetary capital, and production forms. Therefore, leasing may be defined as a production credit in form and content, ie, it is inherent in the nature of the debt. As is evident from the material presented, there are so many sources of financing investment projects that differ in their economic substance, the conditions of borrowing, risky, acquisition cost and utilization and other important parameters, so for each company to analyze the possibility of attracting and efficient use of various sources, which is reflected in the structure of the investment project.