Regardless of this topic width, methodological differences and method of application, we will try briefly and clearly explain the difference between Investment study and Business plan.
Investment study and Business plan help us to take decisions about realisation of the projects, and also can be used in presentation of projects to the creditors, donators, potential business partners/investors or clients.
Investment study and Business plan give us the answers about cost effectiveness and sustainability of the business projects throughout different ratios and also projection of future business activities throughout financial statements
Investment study is drafted for investments of different business subjects, small, middle and big, but also for the purposes of local authorities.
It is drafted when the investment amount is more than 700.000,00 HRK (according to HABOR methodology, but it is not the rule).
Investment study is often component of documentation in applications of HBOR-a, business banks and Ministries (for example application for bank loan, grants from EU funds or grants from different incentive measures).
Most often it is drafted while planning the new projects, usually under the already existing organisation, with the goal to evaluate economic advisability/cost effectiveness of investment, determine the method of its realisation and impact on existing and future business activities.
The basic parts of Investment study are:
Information about business subject-investor, Business activities of investor, Existing asset of investor, Analysis of present financial business activities, Estimation of development possibilities of investor, Market analysis, Dynamic and structure of employees, Technical elements of investment, Location, Environment protection, Dynamic of realisation of investment, Economic-financial analysis, Economic-market estimation, Sensitivity analysis and Concluding estimation of project.
Business plan is simpler than Investment study, and is drafted for less complex business projects of the small and middle business subjects and natural persons.
It is drafted when the investment amount is less than 700.000,00 HRK (according to HABOR methodology, but it is not the rule)
Investment study is often component of documentation in applications of HBOR-a, business banks, Ministries, HAMAG BICRO and HZZ measures for self-employment (for example application for loan, grants from EU funds or grants from different incentive measures).
Most often it is drafted while estimation of the new business projects, usually of the newly founded or future organisations for les complex projects, where it is determined cost effectiveness/sustainability of the investment and makes easier taking decision about its realisation.
The basic parts of Business plan are:
Information about entrepreneur, Starting point, Business activities (products or services), Market advisability, Technological-technical elements of investment, Location, Environment protection, Financial elements of investment and Conclusion.
We can conclude that Investment study is more complex with more detail elaboration of investment, and also includes more financial ratios which help us to estimate profitability of the project and advisability of its realisation.
If you need Investment study or Business plan for realisation of your idea which you have been considering for some time, you can contact us in the frame of business planning service