The cycle of investment for a profitable business


Making an investment to establish or improve a business is a decision that cannot be taken lightly. Before investing your capital in a project, it is necessary to analyze in-depth the viability of the project, as well as its opportunities and weaknesses. In this way, you know and value if it is convenient for you to invest according to your objectives.

On the other hand, for entrepreneurs and business owners, receiving external investment represents an opportunity to reach their goals faster. It is often believed that only large companies can be candidates for an injection of capital, but the reality is that there is a wide range of specialized products available to start up a new business or one that has been in operation for a short period of time.

This capital injection can come from small business loans. The application process to obtain it is very simple, with accessible requirements and personalized advice as an added value. This way, you acquire only what you need, according to your payment possibilities.

What is the Investment Cycle, and how can it help my company?

There is a format that allows visualizing the process of an investment within a company; we are referring to the Investment Cycle. This model facilitates the planning, execution, and recording of the results of any investment.

Within this process, there are four phases. Knowing and mastering them will be of great help both to invest in certain areas of your business and to request external investment:

Strategic planning

This is a detailed data analysis to identify your company’s needs. When we hear the word data, we imagine computers with big algorithms, but this is not the case. The data can come from your sales numbers, your income and expense balance sheet, top-selling products, and even customer surveys. 

After recording this information, look at the needs of each area and opportunities to improve processes. Prioritize them according to their impact on revenue generation, so you will know where to implement immediate actions and which ones can wait.  

For example, if your customers complain about the time it takes you to serve them in the store, you will probably need to hire more staff, but if you already have enough personnel, you may need to invest in training or supervision. Nobody knows the context of your company more than you and your work team; these are variables that influence the planning of investment.

Once the actions to be taken have been determined, it is time to plan the strategy to achieve them. Ask yourself, how much money do you need and what other resources do you need, besides the financial ones?

Project design

After elaborating on the general strategy and the approximate budget, it is time to design the path you will follow. For example, financing alternatives to buy, a list of suppliers to compare and access better costs, in other words, the most practical strategies to execute the project efficiently in terms of money, time and effort.

At this stage, it is necessary to find the right source of capital. There are several possibilities, from your own savings, friends and family loans, external investors, or small business loans from private financial institutions. To know which one is right for you, analyze and compare the advantages and disadvantages of each one. Don’t forget to also consider your realistic repayment capacity.

Implementation, follow-up, and monitoring

It’s time for action! Implementing the strategy for a project requires hard work, discipline, and above all, order. For this assignment, we recommend using project managers such as Asana or, which will help you measure the results constantly. This way, you will be able to modify the course if necessary or visualize that the path you chose is carried out in a timely manner.

Keep in mind that every project must have a leader. Consider that combining the operation of the business with the implementation of a new project will be complicated. Seek help from your staff, assign clear tasks and establish specific rules to facilitate resource management.


This stage refers to the analysis of the results achieved thanks to the investment. Observe how the indicators you started with in the first phase of the process have changed. Take into account the impact of the optimization strategies you sought to achieve. Also, record the successes, mistakes, and challenges that still need to be solved. This will allow you to improve for future investments.

The intention of an investment is to optimize processes, improve quality, and mainly, to make a company grow in a sustainable way. Using the Investment Cycle, you will better visualize each stage to invest like a professional. Use financial products such as small business loans to access larger financing without putting your assets at risk.

Leave a Reply