"Control points" of investment projects

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"Control points" of investment projects

Business needs one thing – to achieve a high-quality result (complete a construction project, produce a batch of products, open a new office, train staff, etc.). Business develops in motion. It doesn’t matter “going forward” or even “going back”. The “backward” movement is also normal for business. This can happen as a result of stopping to rethink plans, work on mistakes, be a sign of finalizing projects of the past or returning to previous activities. Business is wherever it can do something. 

In business, movement and results are much more important than monitoring. With this nature of behavior, it is initially impossible to establish control points. You will be surprised, but it is.Business weakens everything that slows it down. 

Any entrepreneur, first of all, will try to achieve a result and if it doesn’t work out, start something else, all over again. The entrepreneur will not waste his strength on administrative work. His projects are implemented by him independently, he is his own training center and controller. The entrepreneur does not have the resources to maintain the apparatus of people to track the achievement of “control points”. The entrepreneur will consider such costs impractical. An entrepreneur needs people to complete projects, not to keep track of “control points” in projects.

Tracking is the prerogative of departments with the function of state or municipal control. The result of their work is data acquisition and processing. 

Of the two routes of effort and time expenditure “achieving results” and “monitoring and statistics”, route No. 1 is vital for business, and route No. 2 is important for state and municipal control departments.

Businesses don’t need “control points”. A business can always demonstrate “control points” to external users. To understand this, it is enough to pay attention to the numerous requirements of the legislation.

“Control points” at the stage of development of investment projects are not an appropriate rule.  Investors are likely to be “surprised” if they find “control points” in business planning, since such planning is beyond reasonable and realistic planning. Investment projects have the following target parameters: information about the life cycle of the project, forecast for reaching the design capacity, time calculations to reach the breakeven point, payback period of the investment project, etc.

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