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(AEDI). African Entrepreneurial Development Initiatives. Workshop on Investment Planning and Decision Making. Date: 12 th April 2008 Time: 5:30 pm Venue: conference hall, Aubit Hotel, Nyanya, Abuja By: Onyemalu Chinenye. Introduction.
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(AEDI) African Entrepreneurial Development Initiatives
Workshop onInvestment Planning and Decision Making Date: 12th April 2008 Time: 5:30 pm Venue: conference hall, Aubit Hotel, Nyanya, Abuja By: Onyemalu Chinenye
Introduction • Invest: To spend time, energy, effort, money and etc in order to make better or more successful something that you think is good and useful. • Plan: A detailed map/diagram/direction of things to do in order to achieve something e.g. savings/investment plan • Decision: A choice that you make after thinking and talking about what is the best to do or A judgement after proper evaluation
Types of investments Short-term Investment: Long-term Investment The difference in the two above is time.
Investment planning • Set achievable investment goals • Establish the investments objectives • Initiate and develop a strategic plan: you have to develop at least 3 optional plans, be creative and state problems that the investment will likely solve both in short-run and long-run • Develop a plan of action for all options • Evaluate your plan through SWOT analysis
Factors that affect investment decisions • Investment Cost • inherent Risk on investment • Returns/profit on investment (qualitative and quantitative returns) • Time (breakeven period, maturity period this depend on the type of investment) • Source of invested fund (if loan is the source, consider financial risk i.e. interest rate, repayment method and period)
Invest at least 20% Income (daily/weekly/monthly) • Investment flow chart No Yes . Consume all your income .Have nothing for the future . Depend on people Save with banks Less risk Less returns Save with portfolio Managers Higher risks Higher returns e.g. shares
Now that you have available savings you enter stage 2 Things to do • Improve the first sources of saving for higher return or Develop a new investment/business plan • List all requirements needed to in 1 above e.g. infrastructural requirement etc • If you want to move to the news plan, a consider the best possible change over procedure to adopt i.e. parallel or direct.
Things to do B Evaluate new options with initial investment options by identify, analysis and evaluate the possible constrains, identify and determine possible controls/solutions to constrain. CASE STUDY