Generally speaking, there are five steps taken when you make investment decisions:
a) Investigation and research: investment environment analysis, market research and technology ability analysis
b) Analysis and forecast: there are two methods to do the investment amount forecast, they are forecasting item by item and index estimate method.
c) Decision making: decisions can be made after the comparison of each project proposal and the analysis of capability and risk. In making decision you should pay more attention to the feasibility of each proposal and whether assumptions are reasonable and reliable.
d) Performance supervision during the process: this step is to assure the project develops in the right direction and expenses are efficiently used.
e) Assessment afterwards: to compare the result with the forecast. Find the reasons through analysis of the differences. Accumulate experiences for the next investment decision.
