Investment planning: phases and example

Investment planning is an important process in business management that enables companies to make strategic decisions about the use of their financial resources and ensure long-term success. In this article, we will take a closer look at the different phases of investment planning and use an example to illustrate how this process works in practice.

Phases of investment planning

Investment planning usually goes through several phases that provide a structured approach to the evaluation and selection of investment projects. Here is an overview of the most important phases:

  • Identification of investment opportunities: This phase identifies potential investment opportunities that meet the company's strategic goals and needs. This can be done through internal analyses, market research or the evaluation of growth opportunities.
  • Analysis and evaluation: In this phase, the identified investment opportunities are subjected to a thorough analysis and evaluation. This includes the estimation of expected cash flows, the calculation of the net present value and the assessment of risks and opportunities.
  • Decision making: Based on the results of the analysis, the investment opportunities are evaluated and prioritized. The management makes a decision on which projects should be implemented and which should not.
  • Implementation and monitoring: Once the decision has been made, the selected investment projects are implemented. During this process, it is important to monitor progress and ensure that the investments are delivering the expected results.

Example of investment planning

Suppose a company in the manufacturing industry is planning to build a new production facility to expand production capacity and optimize production processes. Here is a simplified example of the investment planning for this project:

Identification of investment opportunities: The company recognizes the need for a new production facility due to increasing demand and growth opportunities.

Analysis and evaluation: A detailed analysis is carried out to evaluate the costs of building the plant, the expected revenue from increased production and potential risks such as building permits or market fluctuations.

Decision-making: Based on the analysis, management decides to build the new production facility because the expected benefits outweigh the costs and the project is strategically important.

Implementation and control: Construction work is started and regular checks are carried out during the construction process to ensure that the project remains on schedule and on budget.


Investment planning is a crucial process for companies to ensure long-term success and take advantage of growth opportunities. By carrying out the various stages of investment planning in a structured way, companies can make informed decisions about the use of their financial resources and make investments that meet their strategic objectives. A well-planned and executed investment project can strengthen a company's competitiveness and create long-term added value.