03: Preliminary considerations

Before any investment opportunity is subject to financial appraisal by management, it is important that you correctly identify a list of all potential investments and prioritise them. This will ensure they are the right ones from a strategic and operational perspective, and will reduce unnecessary time and money spent in analysing all of them.

Key considerations before making any form of major investment include:

• Size and nature of investments required.
• Level of financial resources required.
• Expected return from the investment.
• Whether the investment could yield higher returns elsewhere.