Gains:
- Can list the main items that investors look at when making decisions
- Can translate technical data into financial language
- Knows the limits of pre-feasibility
A flour mill investor is interested in the return, not the machine. The technical team's job is to translate engineering data into five answers that investors can understand.
five questions
- How much investment is required? (machinery, steel structure, assembly, electricity, automation, transportation, customs)
- How much does it produce? (capacity × availability × efficiency)
- How much does it earn? (flour and by-product sales revenue − wheat cost − operating expenses)
- When does it come into play? (production, shipment, installation, commissioning time)
- What are the risks? (wheat price volatility, exchange rate, energy, legislation, logistics)
Translation from technical to finance
The sentence "76% efficiency" alone does not tell the investor anything. The sentence "228 tons of flour and 68 tons of by-products from 300 tons of wheat per day" enters the income statement directly. The engineer is responsible for making this translation.
Pre-feasibility is not a definitive calculation; gives a degree of greatness. Write this clearly. The phrase "±15% uncertainty" prevents half of the discussion that will arise later.