A REAL ECONOMIC CRISIS STIMULUS "BAILOUT

Transcription

1 A REAL ECONOMIC CRISIS STIMULUS "BAILOUT The current economic, financial, credit and confidence crisis has brought new construction and engineering projects to a halt. Even in the best of times proposals for projects that are never built cost $Billions but now, with heightened investor FEAR of loosing money, opportunities have dried up and dependent firms face economic disaster. However, FREE trumps FEAR! WINBUILDIT attacks client/investor FEAR of loosing money by enabling intelligent qualification decisions to be made in the time it takes for a coffee break. Heretofore time and cost has prevented this but now real-time optimization enables FREE business development initiatives to be taken. Value and competence determined before price/fee negotiation puts events in proper order for successful marketing. Other features designed to expedite qualification and instill confidence include: 1) Relation of client s business plan to feasibility recognized. 2) Standardized feasibility methods acceptable to financial analysts used 3) Return on investment methods used acceptable to financial analysts. 4) Real-time (single code) optimization maximizes client profitability. 5) Credit problems can be resolved at the very beginning in a way bankers understand. 6) Price estimate (Calculator A only) 7) Qualification or relative value of a proposal is predicted in terms of Internal Rate of Return ( IRR ) and Modified Internal Rate of Return ( MIRR ). (1) CALCULATOR "A", (TYPICAL EXAMPLE) (form9_new.jpg) These results enable you to ask, in the time it takes for a coffee break: "DO THESE RETURNS JUSTIFY PROCEEDING?" Better qualification does not come by spending more weeks, months or years. Program enables YOU to intelligently separate dead from live dogs and keep business development on course. Doing this in the time it takes for a coffee break makes it possible to make more effective contacts. YOUR BAILOUT comes from more qualified projects. 08M23DOC.DOC - February 4,

2 EXAMPLE: Recognizing the prevalent confusion between price and value CREATIVE ENGINEERING wrote a Program to make that distinction in order to survey the market for an expensive mining machine. Used during a cold turkey foray to 12 Northern Nevada Gold Mines the offer of a free mine plan feasibility study gained entry past guards to 11 successful calls on mine managers averaging 4 hours each. What, the mine managers quickly discovered was they could also real-time optimize a mine s plan to an INTERNAL RATE OF RETURN result. This means optimizing share-holder value. Or, as one mine engineer put it; The Program did in 2 seconds what just took me 2 months. WINBUILDIT has since improved on the first program by adding code including that for automatic structural design. This addition resolves structural feasibility and cost questions and in combination with RSMeans Square Foot Costs determines the costs of entire buildings. A dual file system separating design from business plan enhances optimization capabilities. HUSTLING BUSINESS may not be your forte and may even sound like a dirty word but bankruptcy is an ugly alternative. You are now either a road warrior or broke! Imagination and initiative must be taken to identify and act on opportunities like the calls to Nevada above. Do not expect clients to walk in through your front door. Develop in your mind the outline of an idea that can benefit each prospect. Use Winbuildit to attach value to it. Develop a short plausible explanation such as; free feasibility study to give purpose and value to your call and as a means of getting past subordinates. A sketch and a WINBUILDIT output will support purpose. Don t forget, clients need your help! APPLYING WINBUILDIT begins with the client explaining his or her vision and business plan. You then enter the building shape, floor assignments, setbacks, beam and column shape ranges, wind, seismic, business plan etc. Other cost details like toilets and windows are merged from prewritten RSMeans relational cost data base files. Click <Compute> and results similar to those above will be displayed. Out of this the client will know and the user should be able to predict what the qualification is by comparing IRR and MIRR interest rates to other investments, optimizations, or common stocks. WINBUILDIT BUILDS CLIENT CONFIDENCE by: 1) Real-time optimization ensures that the client receives and is convinced by personal involvement that every effort has been made to provide maximum financial benefit. 2) Establishing value before fee negotiation puts events in persuasive order. 3) IRR and MIRR results enable credit determination or prediction at the very beginning. 4) IRR and MIRR metrics enables logical quantification of risk ranges rather than reliance on gut feelings. 5) Results are valid now rather than weeks, months or years later. 6) The client s business plan is an integral part of the computation. 7) By taking into account all elements of a businesses cash flows the inaccuracies of what The Wall Street Journal calls betting is avoided. 8) By using standardized feasibility methods inaccuracies of what Mc Graw Hill calls 200 methods is avoided. The user can identify live prospects, avoid wild goose chases, prepare intelligent, business development plans and take marketing initiatives. GO GET EM TIGER! 2

3 WINBUILDIT FOR ANY BUSINESS It is not unusual to see $Millions wasted on single rejected A/E/C proposals. Other industries can face equally large losses. WINBUILDIT CALCULATORS are easy-to-use interfaces that make the connection between different types of businesses and a display of Internal Rate of Return ( IRR ) and Modified Internal Rate of Return ( MIRR ). The intervening mathematics is transparent. Conventionally obtaining data of this quality is confused by the array of measuring sticks available. Irrelevant tangential activities frequently ignore the client s business plan. One Mc Graw Hill publication counts over 200 methods. But regardless, financial analysts agree that the methods of Internal Rate of Return ( IRR ) and Modified Internal Rate of Return ( MIRR ) are the best. There is also general agreement that these metrics are difficult to applyno two businesses are alike. To address these needs WINBUILDIT provides 7 calculators. Each calculator is a procedure that connects the clients total plan to an IRR and MIRR calculation without the need for special knowledge. Direction to individual calculators or Programs is obtained from Form3. Calculators are enumerated A to G WINBUILDIT FORM3 form3_new.jpg 3

4 CALCULATOR "A" for commercial buildings is covered on pages 1 and 2 CALCULATOR "B" \jpg_08a\form3_new_calcb.jpg WINBUILDIT CALCULATOR "B" is an easy-to-use interface between common business procedures and the mathematics for displaying Internal Rate of Return ( IRR ) and Modified Internal Rate of Return ( MIRR ). IRR and MIRR for most of us can be explained as measurements of business success. The terms directly compare to the interest rates used to measure profit from stocks, bonds and other iterations from use of the procedure s own real-time optimization capability. Using these terms as measuring sticks return on investment can be maximized, the desirability (qualification) of a business plan can be determined, a choice can be made between business plans and business development initiatives can be taken. CALCULATOR "B" Is easy to use. It determines IRR and MIRR from business plans that can be defined in 5 entries. 1) Enter the length of time in years that is under consideration. This may include both construction and rental periods. 2) Enter in months the length of time for construction. If there is no construction period such as might occur in the case of a building purchased and immediately rented the assumption is made that a single investment (negative cash flow) is made in the first month. 3) Enter the investment amount. 4) Enter the annual income which is automatically distributed to each month of the total years minus the construction period. 5) Enter the salvage or sale price assumed received in the final month of the Total Years. 6) Click <APPLY 8>. 7) Based on interest rates displayed an intelligent decision can be made. Applications are seen in real estate, construction and marketing of capital equpment 4

5 CALCULATOR "C" \jpg_08a\form36_new.jpg ] WINBUILDIT CALCULATOR "C" is a precise alternative to CALCULATOR "B". It is an interface between common business procedures and the mathematics for displaying Internal Rate of Return ( IRR ) and Modified Internal Rate of Return ( MIRR ). IRR and MIRR for most of us can be explained as measurements of business success. The terms directly compare to the interest rates used to measure profit from stocks, bonds and other iterations or from use of the procedure s realtime optimization capability. Using these terms as measuring sticks return on investment can be maximized, the desirability (qualification) of a business plan can be determined, a choice can be made between business plans and business development initiatives can be taken. CALCULATOR C accommodates IRR and MIRR determinations of any complexity limited only by a maximum of 1200 monthly and/or 100 annual cash flows. Annual repeat, monthly repeat, inflation, deflation and depletion commands expedite and simplify data entry. CALCULATOR C is accessed from CALCULATOR F and G to refine output. APPLICATION is in any industry. 5

6 CALCULATOR "D" jpg_08a\form37_new.jpg WINBUILDIT CALCULATOR "D" is an easy-to-use interface between common business procedures and the mathematics for displaying Internal Rate of Return ( IRR ) and Modified Internal Rate of Return ( MIRR ). IRR and MIRR for most of us can be explained as measurements of business success. The terms directly compare to the interest rates used to measure profit from stocks, bonds and other iterations from use of the procedure s own real-time optimization capability. Using these terms as measuring sticks return on investment can be maximized, the desirability (qualification) of a business plan can be determined, a choice can be made between business plans and business development initiatives can be taken. CALCULATOR "D" is accessed by clicking the appropriate command bar at Form3. This CALCULATOR is suitable for most building construction projects having a single usage and where total square footage and a cost per square foot basis are known. APPLICATION is seen in the construction and real estate businesses. 6

7 CALCULATOR "E" jpg_08a\form38_new.jpg WINBUILDIT CALCULATOR "E" is an easy-to-use interface between common business procedures and the mathematics for displaying Internal Rate of Return ( IRR ) and Modified Internal Rate of Return ( MIRR ). IRR and MIRR for most of us can be explained as measurements of business success. The terms directly compare to the interest rates used to measure profit from stocks, bonds and other iterations from use of the procedure s own real-time optimization capability. Using these terms as measuring sticks return on investment can be maximized, the desirability (qualification) of a business plan can be determined, a choice can be made between business plans and business development initiatives can be taken. CALCULATOR "E" is accessed by clicking the labeled command bar at Form3. This calculator is similar to "D" but is applicable to multi usage buildings that include areas dedicated to different usages such as condominiums, hotel, office and retail areas. Total square footage and cost per square foot basis must be known. APPLICATION is seen in the construction and real estate businesses. 7

8 CALCULATOR "F" OILFIELD FINANCIAL ANALYSIS jpg_08a\form39_new.jpg WINBUILDIT CALCULATOR "F" is an easy-to-use interface between petroleum industry business procedures and the mathematics for displaying Internal Rate of Return ( IRR ) and Modified Internal Rate of Return ( MIRR ). IRR and MIRR for most of us can be explained as measurements of business success. The terms directly compare to the interest rates used to measure profit from stocks, bonds or other iterations from use of the procedure s own real-time optimization capability. Using these terms as measuring sticks return on investment can be maximized, the desirability (qualification) of a business plan can be determined, a choice can be made between business plans and business development initiatives can be taken. CALCULATOR "F", OILFIELD FINANCIAL ANALYSIS, Takes advantage of 3-D seismograph visualization techniques adapting research by Cambridge Energy Research Associates (CERA) to the prediction of IRR and MIRR that may result from the production of targeted petroleum resources. The purpose is to provide exploration managers and other responsible decision makers a tool to predict, sort, rate and select exploration opportunities "in the time it takes for a coffee break". CALCULATOR "F" is accessed by clicking the appropriate command bar at Form3. APPLICATION is seen in both onshore and offshore exploration and production planning. 8

9 CALCULATOR "G" MINING and BUSINESS IRR CALCULATOR jpg_08a\form40_new.jpg WINBUILDIT CALCULATOR "G" is an easy-to-use interface between common business procedures and the mathematics for displaying Internal Rate of Return ( IRR ) and Modified Internal Rate of Return ( MIRR ). IRR and MIRR for most of us can be explained as measurements of business success. The terms directly compare to the interest rates used to measure profit from stocks, bonds or other iterations from use of the procedure s own real-time optimization capability. Using these terms as measuring sticks return on investment can be maximized, the desirability (qualification) of a business plan can be determined, a choice can be made between business plans and business development initiatives. MINING or BUSINESS IRR CALCULATOR parallels "F" OILFIELD FINANCIAL ANALYSIS but adopts popular units such as pound, kilogram, ton, carats, houses, buildings, yachts, automobiles etc. CALCULATOR "G" is accessed by clicking the appropriate command bar at Form3. APPLICATION is seen in any business where production and marketing trends are known. Department stores purchasing brassieres could, by way of example, purchase for delivery on a basis matching sales rates that increase near Christmas then reduce later. By comparing IRR and MIRR rates the most profitable purchase rate could be established. 9

10 HAULPLAN (form_haulplan.jpg) HAULPLAN is an easy-to-use interface between open pit mining procedures and the mathematics for displaying Internal Rate of Return ( IRR ). HAULPLAN reduces 52 parameters describing an existing or proposed open pit mining operation into an Internal Rate of Return result. This enables modeling alternative arrangements in order to find the one that maximizes profitability, justifies qualification or expedites marketing of mine machinery. See paragraph labeled EXAMPLE on page 2. (1) IRR and MIRR for most of us can be explained as a measurement of business success. These terms directly compare to the interest rates used to measure profit from stocks, bonds and other iterations from use of the Program s real-time optimization capabilities. Using these as measuring sticks return on investment can be maximized, the desirability (qualification) of a mine plan can be determined, a choice can be made between alternative plans and business development initiatives can be taken for products and services. Consider INTERNAL RATE OF RETURN ("IRR") and MODIFIED INTERNAL RATE OF RETURN ("MIRR") as better measures of Return on Investment. IRR returns profit for reinvestment at the IRR interest rate. MIRR returns profit to shareholders for reinvestment at a lower commercial rate. (10% is default) Search the underlined text on the internet for additional information. Find out much more on this important subject by searching the underlined text above on the internet. WINBUILDIT the business kick-starter you need to fight the economic crisis in the time it takes for a coffee break! Tel , Fax , Cell CREATIVE ENGINEERING (USA) 3513 Century Drive Bakersfield, Ca M23DOC.DOC - February 4,