Requirements of Direct Investments


As is the case with all decisions, there are do‘s and dont’s here as well:

  • Success factors of private investors (usually with managerial experience)
    • Feeling for economic developments
    • Negotiating skills
    • Assertiveness
    • Local knowledge
    • Network to decision-makers in politics, administration and trade and industry
    • Contribution of own financial standing
    • Possibility of financing from own funds
    • Flexibility
  • Problem areas of private investment activity
    • Often no sparring partner on an equal footing
    • Impervious to success over time
    • Formulas for success cannot be applied across the board
    • Opportunistic approach
    • Unclear aims
    • No investment strategy
    • Sensible approach to property taxes
    • Overweighting of taxes
    • No investment analysis
    • Inadequate controlling
    • No risk management
    • No exit strategy

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