To assess the return on an investment, we must examine various factors that will lead us to the final decision to implement or reject it. In any case, accurate information from the right advisor is necessary.
-Cost
-Financial benefit/revenue
-Payback period
-Added value of the investment
-Industry volatility - Risk
-Competition
-Innovation
A determining factor in evaluating an investment is, of course, the overall cost of it. In every case, a proper assessment by specialists must be made to avoid unnecessary expenses or to anticipate emergency needs. A key tool for a business to reduce the cost of an investment is periodic Funding Programs as a means of financing (ESPA, Development Law, etc.).
Before proceeding with an investment, we must clearly calculate the benefits/revenues that we estimate it will yield. Many factors should be considered, and in many cases, a relevant financial forecast from a specialized advisor is required.
Based on the two aforementioned factors, we can calculate the payback period of an investment. The shorter the payback period, the more advantageous and efficient an investment is characterized. This is something that entrepreneurs take seriously into account before deciding to implement an investment plan.
' Added value, refers to the benefits that a business will derive from an investment (not necessarily financial). These may include improvements in operations, acceleration of the production process, obtaining quality certification, staff specialization, etc.
It is essential to assess the risk associated with an investment concerning the industry in which it operates. An industry that is in decline is characterized by frequent and large fluctuations, making it difficult to estimate the return on an investment. Conversely, an industry that is in a growth phase is characterized by stability and favors investments.
. Market and competition research is one of the primary stages that should precede an investment. An investment should yield competitive benefits that will highlight a business and contribute to its further development and evolution.
. innovation is a factor that significantly increases the efficiency of an investment. Investments that, for example, introduce innovation in production, provide innovation to the final product, or result in a patent, etc., are “doomed” to succeed!
In any case, the evaluation of an investment is a complex process in which we must take into account several factors and market peculiarities. However, this task becomes easier when we have the right partners by our side to guide us to the desired outcome.
For more information, request a telephone appointment by clicking the button below, and a specialized economist from our company will contact you.
Effective Investment: What It Depends On and What to Consider
12 February 2022
ΙΩΝΙΚΗ Finance
To assess the return on an investment, we must examine various factors that will lead us to the final decision to implement or reject it. In any case, accurate information from the right advisor is necessary.
-Cost
-Financial benefit/revenue
-Payback period
-Added value of the investment
-Industry volatility - Risk
-Competition
-Innovation
A determining factor in evaluating an investment is, of course, the overall cost of it. In every case, a proper assessment by specialists must be made to avoid unnecessary expenses or to anticipate emergency needs. A key tool for a business to reduce the cost of an investment is periodic Funding Programs as a means of financing (ESPA, Development Law, etc.).
Before proceeding with an investment, we must clearly calculate the benefits/revenues that we estimate it will yield. Many factors should be considered, and in many cases, a relevant financial forecast from a specialized advisor is required.
Based on the two aforementioned factors, we can calculate the payback period of an investment. The shorter the payback period, the more advantageous and efficient an investment is characterized. This is something that entrepreneurs take seriously into account before deciding to implement an investment plan.
' Added value, refers to the benefits that a business will derive from an investment (not necessarily financial). These may include improvements in operations, acceleration of the production process, obtaining quality certification, staff specialization, etc.
It is essential to assess the risk associated with an investment concerning the industry in which it operates. An industry that is in decline is characterized by frequent and large fluctuations, making it difficult to estimate the return on an investment. Conversely, an industry that is in a growth phase is characterized by stability and favors investments.
. Market and competition research is one of the primary stages that should precede an investment. An investment should yield competitive benefits that will highlight a business and contribute to its further development and evolution.
. innovation is a factor that significantly increases the efficiency of an investment. Investments p.x. introduce an innovation in the production of, give a novelty in the final product or result in a patent/patent, etc., are "doomed" to get!
In any case, the evaluation of an investment is a complex process in which we must take into account several factors and market peculiarities. However, this task becomes easier when we have the right partners by our side to guide us to the desired outcome.
For more information, request a telephone appointment by clicking the button below, and a specialized economist from our company will contact you.
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