We all want 2022 to wash away the difficulties that COVID-19 has brought. Moving the needle on your replacement or expansion project will set the new year ahead up for success.
The first step in any plan is to dream a little – and then to layer it with reality.
How will you realistically move from your vision to a capitalized implemented plan (in the form of a new production facility or new machinery for your facility)? That’s where we can help.
So, let’s dream and brainstorm a bit. Take some time and ask yourself the following 3 questions:
- What would I want my factory to look like in 2 years’ time – what machinery, tools and equipment do I have on-site (after the 2-years)?
- What product am I manufacturing, processing, or fabricating in that factory?
- Who are the buyers of my manufactured, processed, or fabricated goods?
Now, let’s do the reality check:
- How comprehensive, accurate and real are my dreams?
- Do I have all the relevant supporting documentation and market buy-in (offtakes or intention to buy my product) to justify this multi-million-rand investment?
- Do I have the skills, time and money to bring the level of accuracy to at least 90%?
Decision-makers are on a wide spectrum of answers to these questions for their investment projects.
In moving from an early-stage project to financial close, funders will require that your business plan covers three layers of feasibility – all supported by volumes of reports and opinions, which are at a 90% + level of accuracy or likelihood:
- Commercial feasibility: including offtakes and/or a robust market study to confirm demand and availability of raw input supply at commercially viable volumes and values
- Technical feasibility: including engineering designs, permits, quality OEM supply and technical support, a competent operational team
- Financial & Legal feasibility: including disclosure of accurate and reliable quality historically financial information, a comprehensive economic and financial model and all relevant compliance
Looking at the graph below, how far down the risk and project development cycle are you and are you ready to raise the capital you need?
To take an investment from the early stage (pre-feasibility and concept development) to a constructed, commissioned, and operational production facility takes years of planning, research, preparation, financial investment, and effort.
“Most people overestimate what they can do in one year and underestimate what they can do in ten years.” – Bill Gates
Unfortunately, there is no shortcut to financial close. Whether you’re at ideation or 90% accuracy – we can help you move down the risk graph towards a finance-ready project and help you raise the finance you need to make your dreams come true – realistically.