Speaking about an enterprise that is engaged in investment projects and wants to check the financial viability during their initial selection, it is necessary to determine which methods of project management are the most effective.
It is necessary
- - Finished business project;
- - analysis and management skills.
Instructions
Step 1
Use the conditional highlighting method. It is best used when the project is physically separated from the enterprise and is considered to be independent. For this, the project, which becomes part of the enterprise, is provisionally presented as a separate legal entity with its liabilities and assets, costs and proceeds. Thanks to this method, it is possible to assess the efficiency of the business and its financial viability. At the same time, the question of the financial condition of the enterprise that implements the project remains open.
Step 2
Apply a change analysis method. Here, only increments (changes) that are made by the project in the data on the activities of the enterprise are analyzed. The method becomes especially convenient when the essence of the project is the modernization or expansion of the current production. Moreover, the goal of the project can be both an increase in revenue (from an increase in product quality or volumes), and a decrease in operating costs. The task is to compare the increase in the company's net income with the investments that are required to ensure this increase.
Step 3
Consider the need for a merge method. It consists in analyzing the financial soundness of the firm implementing the project, and does not affect its effectiveness. It is especially convenient to apply the method when the scale of the project is comparable to the scale of the existing production. Due to this method, you can build a financial plan for an enterprise that implements an investment project.
Step 4
Use the overlay method. To evaluate the project for them, first consider it separately (by the conditional allocation method), analyze its economic efficiency and financial viability, then prepare a financial plan of the enterprise itself without the project, and already at the level of financial statements combine the results of the current activities of the enterprise and the project itself.
