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Tuesday, 6 September 2016

Insights On Making A Capex Request

By Kevin Murray


Requesting money for your project is not an easy thing to do. You would have to be careful with everything that you shall put your request. They need to be relevant for the members of the board to be interested in your concept in the first place. So, allow the tips below to help you with your writing.

You should give an exact estimate on how much this will cost the company. A Capex request needs to be clear for the board members to somehow be in the same page with you. Give them the figures ahead of time and they shall slowly justify that this is just in the right range. Everyone will come to their senses for as long as you remain consistent with your talk points.

You should manage to explain to these people how this business plan came to life. Use simple terms and form a connection with the board. Once you become successful on your first try, your next projects will be viewed as more sensible and in line with what the company is all about. Just get through the hardest part which is the first phase.

Go on with the technical changes that might happen along the way but also give the assurance that you have carefully planned for all of this. There is a second plan if some parts of the original layout fail. So, simply be ready for those questions whether they might appear skeptical or not. Accommodate everybody and gain their trust.

Every cost needs to be accounted for. If you have to guide them through where the future materials will be coming from, so be it. Again, you are at the disposal of these people as of the moment. So, continue apprehending all of their fears and you can expect them to start counting on you to deliver even how eccentric your idea may be.

List down the possible risks as well. Remember that once you see interest among these people, your goal is to turn them into partners in the end. Also, talk about all the times in which you have managed to deliver for the company. You will not be putting your name on the line if you do not think that this project will be a huge hit.

If some of the stakeholders have already agreed with your plan, simply show a document of their approval. Most of the time, when there is money involved, the group just needs someone to do it first. In that way, the blame can be on this person if everything goes haywire. That is just how business works.

A list of assumptions will be the next thing in your agenda. However, take note that this is just part of what is professionally required from you. Once you already got the entire board to sign up, your project will be on the way.

Simply defend your proposal with everything you got. Sometimes, your confidence can be enough to make everyone believe in the product which is still about to be made. Practice your speeches but also talk about your personal thoughts on your own idea. That can make the board truly excited.




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