PMR 7005

ENTERPRISE MANAGEMENT FOR

PROJECT LEADERS

STUDENT ID: 2018232

TUTOR: DR EATON SIMENTI PHIRI

Table of Contents
THE DREAM.................................................................................................................2
2. EMPLOYMENT VS SELF-EMPLOYMENT..............................................................3
ADVANTAGES OF EMPLOYMENT.........................................................................3
DISADVANTAGES OF EMPLOYMENT...................................................................3
ADVANTAGES OF SELF-EMPLOYMENT...............................................................3
DISADVANTAGES OF SELF-EMPLOYMENT.........................................................3
3. RESOURCES NEEDED TO SET UP BUSINESS...................................................3
4. REASONS THAT COULD HINDER ME FROM STARTING MY BUSINESS..........4
5. AN ESTIMATE OF PERSONAL AND DOMESTIC EXPENDITURE IN A MONTH.4
ESTIMATES WHEN ECONOMISING..........................................................................5
B. START-UP...............................................................................................................5
3. Critical factors considered when evaluating business ideas....................................7
5. Competitive Analysis................................................................................................7
Cash Flow...................................................................................................................12
BUSINESS NAME AND ADDRESS.......................................................................15
PROPRIETOR’S NAME AND ADDRESS..............................................................16
BUSINESS FORM..................................................................................................16
BUSINESS ACTIVITY.............................................................................................16
AIMS........................................................................................................................16
OBJECTIVES..........................................................................................................17
MARKET SIZE AND GROWTH..............................................................................17
COMPETITIVE ADVANTAGES..............................................................................20
PROPOSED CUSTOMERS....................................................................................20
ADVERTISING AND PROMOTIONS STRATEGY.................................................21
PRICING STRATEGY.............................................................................................21
PREMISES..............................................................................................................22
EQUIPMENT...........................................................................................................22
KEY PEOPLE AND JOB FUNCTIONS...................................................................22
BACKGROUND DETAILS OF KEY PEOPLE........................................................23
FINANCIAL HIGHLIGHTS......................................................................................23

Page | 1
 No Activity/ Competencies/Skills Yes No

1 Do you work hard at things which interest you? √

2 Are you a self-starter, somebody who does not need pushing? √

3 Are you the sort of person who frequently has new ideas? √

4 Do these ideas usually get implemented? √

5 Are you willing to put in the extra hours to get things done? √

6 Have you a supportive family that does not object to your putting in √
those extra hours/

7 Do you usually do your own thing rather than follow the crowd? √

8 Do you set yourself goals and gain satisfaction from achieving them? √

9 When things go wrong do you press on regardless if you believe in √

what you are doing?

10 Are you fairly stable – not too many ups and downs? √

11 When you do not get your own way, do you shrug it off, not bear a √
grudge and just get on with life?

12 Can you motivate others to work with you? √

13 Are you willing to take measured risks? √

14 Can you live with uncertainty about the future? √

15 Are you willing to try your hand at most things? √

16 Do others consider you a fairly good all rounder? √

THE DREAM
1.

Page | 2
2. EMPLOYMENT VS SELF-EMPLOYMENT
ADVANTAGES OF EMPLOYMENT
 You get paid for the hours you worked for

 Employer usually pays for part or wholly, for medical aid

 A relatively easy access to credit

DISADVANTAGES OF EMPLOYMENT
 Having little or no control over what happens in the business

 Fewer tax deductions available to employees

 No equity

ADVANTAGES OF SELF-EMPLOYMENT
 You are in control of what happens in the business

 You create your own work schedule and work environment

 You retain creative control

 You often get to choose your co-worker

DISADVANTAGES OF SELF-EMPLOYMENT
 No employee benefits such as paid holiday

 Unpredictable income

 Potentially long working hours

 Increased pressure and responsibility

3. RESOURCES NEEDED TO SET UP BUSINESS

 Financial Resources: Funding could either be through person funding, or

loans and credit from banking institutions

 Human Resources: Business success is greatly influenced by the strength

and talent of its employees. Utilising the expertise and services of

experienced professionals in their respective industry aid in fulfilling the goals

and objectives of a business.

Page | 3
  Educational resources (Or Industry Know How): Gaining as much knowledge

on the industry in which your intended business operates in, is key; it helps

one make informed decisions that could positively impact the business.

 Physical resources: Premises and equipment that will be used in the daily

business operations.

The resources needed to set up business are attainable, and are a good source of

my motivation.

4. REASONS THAT COULD HINDER ME FROM STARTING MY BUSINESS

The main reason that could impede my business start-up is my lack of financial

capital. This challenge can be overcome by seeking investors to buy into the

business set up, or seeking loans from commercial banks.

5. AN ESTIMATE OF PERSONAL AND DOMESTIC EXPENDITURE IN A

MONTH
ITEM COST

Rent / Mortgage P4000.00

Utilities P1500.00

Insurance P510.00

Internet and subscriptions P720.00

Food P2000.00

Clothing P2000.00

Travel P1500.00

Entertainment P800.00

TOTAL P 13 030.00

Page | 4
ESTIMATES WHEN ECONOMISING
ITEM COST+

Rent / Mortgage P4000.00

Utilities P800.00

Insurance P510.00

Internet and subscriptions P350.00

Food P1300.00

Clothing P1100.00

Travel P900.00

Entertainment P300.00

TOTAL P 9 260.00

I can survive under the revised (economised) budget shown above.

B. START-UP
1.

Step 1:

Idea 1; Start up geotechnical engineering as they are a few of such in

Botswana.

Idea 2; Develop a Project Management software that is tailored to the needs

of Botswana’s construction and engineering industries.

Page | 5
2.

Start-up geotechnical engineering as they are a few of such in Botswana.

Score
Criteria Descriptor 1 2 3 4 5
Attractiveness of idea Would you enjoy doing it? √
Ability to undertake Do you have the skills √
needed to do it?
Practicality Is it something that really √
can be done?
Potential market Will customers buy it? √
demand
Ability to combat Is there competition and √
competition can you combat it in some
way?
Ability to differentiate Can you differentiate it in √
some way that can be
sustained over a long
period?
Price potential Can you avoid competing √
simply on price?
Resource availability Do you think you have, or √
can get the resources you
need to start-up this
business?

Develop a Project Management software that is tailored to the needs of

Botswana’s construction and engineering industries

Score
Criteria Descriptor 1 2 3 4 5
Attractiveness of idea Would you enjoy doing it? √
Ability to undertake Do you have the skills √
needed to do it?
Practicality Is it something that really √
can be done?
Potential market Will customers buy it? √
demand
Ability to combat Is there competition and √
competition can you combat it in some
way?
Ability to differentiate Can you differentiate it in √
some way that can be
sustained over a long

Page | 6
 period?
Price potential Can you avoid competing √
simply on price?
Resource availability Do you think you have, or √
can get the resources you
need to start-up this
business?

3. Critical factors considered when evaluating business ideas.

 Feasibility

 Estimated cost

 Potential profitability levels

 Sustainability of the business

5. Competitive Analysis
Competitive Analysis Checklist
High Medium Low
Competitive rivalry √
Power of customers √
Power of buyers √
Ease of entry to the market √
Threat of substitutes √
Overall evaluation

6. Loren Geo-Technical Solutions will place greater emphasis on four main types of

market segments, which include local government, major construction companies,

real estate companies as well as water utilities parastatals. This is due to the fact

that these types of organisations have great needs and/or are the best capitalised of

all our prospective clients.

The construction industry has enacted laws that require certain certifications of safe

practices that include retaining wall and foundation load bearing capacities, geo-

instrumentation installation, as well as slope stabilities. Local government most often

Page | 7
require services that include earth science historical reviews and geomorphological

studies, whilst real estate companies often require fault mapping and bluff studies.

Utility organisations on the other hand often require a wide range of services that

include water and soil analysis, aerial photo interpretation, seismicity studies etc.

The geo-engineering industry continues to grow at a relatively fast rate, with an

approximate average of 22% growth over the last few years (Journal of Hydrology

and Geo-engineering).

Whilst analysing the market using the five forces of profitability, it showed that the

greatest threat that currently exists in the industry is the new entrants into the

market, who seek to capitalise on the high growth that has been experienced. At

present, the competition among different geotechnical companies is moderate since

most of the competition is diminished because of the high growth rate. Most of the

competitors are able to enhance their profitability by simply keeping up with the

expansion in the industry.

Below are the platforms we will leverage on to boost our geo-technical services

company and to promote and advertise our business;

 Place adverts on newspapers, radio and TV stations.

 Encourage the use of word of mouth publicity from our loyal customers

 Leverage on the internet and social media platforms like; YouTube,

Instagram, Facebook, Twitter, LinkedIn, Snapchat, Google+ and other

platforms to promote our business.

 Ensure that we position our banners and billboards in strategic positions in

Gaborone and all around Botswana.

 Distribute our fliers and pamphlets in target areas around the country

Page | 8
  Advertise our business in our official website and employ strategies that will

help us pull traffic to the site

 Brand all our official cars and trucks and ensure that all our staff members

wear our branded uniform.

Apart from quality, pricing is one of the key factors that gives leverage to

geotechnical services industry, it is normal for clients to go to places where they can

get services at a cheaper price which is why major players in the geotechnical

industry will always attract loads of customers.

We will ensure that the prices and quality of all the services that we offer are

competitive with what is obtainable amongst geotechnical companies within our

level.

7. BREAK-EVEN WORK SHEET

Break-Even Work sheet

LOREN GEOTECHNICAL SOLUTIONS (PTY) LTD

Geotechnical Services [Date]

For the May 8, 2020 – August 12 ,

Period: 2020

(A
Sales BWP 2 990 000,00 )

Less direct (variable costs)

Materials BWP 24 000,00
Direct Wages BWP 70 000,00
Other BWP 0,00
Total Direct Costs BWP 94 000,00
BWP 2 896
Gross Profit/ Contribution 000,00 (B)
Fixed
Costs (Overheads)
Wages/Salaries (including
taxes) BWP 1 905 000,00

Page | 9
 Rent BWP 180 000,00
Heating/light/Power BWP 27 000,00
Advertising BWP 2 000,00
Insurance BWP 132 000,00
Transport/Travel BWP 120 000,00
Telephone BWP 4 000,00
Stationery/postage BWP 3 000,00
Repairs/renewals BWP 28 478,00
Depreciation BWP 0,00
local taxes BWP 72 000,00
Other (specify) BWP 0,00
Other (specify) BWP 0,00
BWP 2 790 ( C
Total Fixed Costs (TFC) 750,00 )
BWP 30
Net profit 970,00
Less drawings or dividends BWP 0,00
BWP 30
Profit retained in the business 970,00
Break-Even Point = ( C ) x ( A ) / ( B ) BWP 2 881 333,74

8. The company have various equipment that will be used in our daily geotechnical

engineering services, some of which are abrasions machines, stability machines,

computerises CBR, compression testing machines, soil sampling augers, direct

shear testing equipment, triaxial testing equipment, data loggers, load cells,

transducers, pore pressure as well as load rings and indicators. All these equipment

will come in handy as the business aims to gain a bigger market share in the

industry. The equipment at start-up, for the company of our magnitude can be

purchased at a cost of roughly P600 000.00. Loans from commercial banks will be

sought, in order to finance the purchasing of this equipment.

10.

Page | 10
 Cash Flow
Month Month Month
Have Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 10 11 12

115 75 85 125
SALES 27 500,00 27 500,00 27 500,00 27 500,00 45 000,00 45 000,00 62 500,00 000,00 85 000,00 000,00 000,00 000,00
Volume - - - - - - - - - - - -

115 75 85 125
Value 27 500,00 27 500,00 27 500,00 27 500,00 45 000,00 45 000,00 62 500,00 000,00 85 000,00 000,00 000,00 000,00

RECEIPTS

115 75 85 125
Sales - Cash 27 500,00 27 500,00 27 500,00 27 500,00 45 000,00 45 000,00 62 500,00 000,00 85 000,00 000,00 000,00 000,00
Sales - debtors 0,00 0,00 0,00 0,00 0,00 0,00 0,00 0,00 0,00 0,00 0,00 0,00
Capital - Introduced 0,00 0,00 0,00 0,00 0,00 0,00 0,00 0,00 0,00 0,00 0,00 0,00
Grants, loans etc. 0,00 0,00 0,00 0,00 0,00 0,00 0,00 0,00 0,00 0,00 0,00 0,00
115 75 85 125
TOTAL ( A ) 27 500,00 27 500,00 27 500,00 27 500,00 45 000,00 45 000,00 62 500,00 000,00 85 000,00 000,00 000,00 000,00

PAYMENTS

Materials
158 158 158 158 158 158 158 158 158 158 158 158
Wages/ salaries 750,00 750,00 750,00 750,00 750,00 750,00 750,00 750,00 750,00 750,00 750,00 750,00
15 15 15 15
Rent 15 000,00 15 000,00 15 000,00 15 000,00 15 000,00 15 000,00 15 000,00 000,00 15 000,00 000,00 000,00 000,00

Page | 11
Heat/light/ power 2 250,00 2 250,00 2 250,00 2 250,00 2 250,00 2 250,00 2 250,00 2 250,00 2 250,00 2 250,00 2 250,00 2 250,00
Advertising 166,67 166,67 166,67 166,67 166,67 166,67 166,67 166,67 166,67 166,67 166,67 166,67
11 11 11 11
Insurance 11 000,00 11 000,00 11 000,00 11 000,00 11 000,00 11 000,00 11 000,00 000,00 11 000,00 000,00 000,00 000,00
10 10 10 10
Transport/Travel 10 000,00 10 000,00 10 000,00 10 000,00 10 000,00 10 000,00 10 000,00 000,00 10 000,00 000,00 000,00 000,00
Telephone 333,33 333,33 333,33 333,33 333,33 333,33 333,33 333,33 333,33 333,33 333,33 333,33
Stationery/ postage 250,00 250,00 250,00 250,00 250,00 250,00 250,00 250,00 250,00 250,00 250,00 250,00
Repairs/renewals 2 373,17 2 373,17 2 373,17 2 373,17 2 373,17 2 373,17 2 373,17 2 373,17 2 373,17 2 373,17 2 373,17 2 373,17
Local Taxes 6 000,00 6 000,00 6 000,00 6 000,00 6 000,00 6 000,00 6 000,00 6 000,00 6 000,00 6 000,00 6 000,00 6 000,00
Other ------------------ 0,00 0,00 0,00 0,00 0,00 0,00 0,00 0,00 0,00 0,00 0,00 0,00
Other ------------------ 0,00 0,00 0,00 0,00 0,00 0,00 0,00 0,00 0,00 0,00 0,00 0,00
Capital purchases 0,00 0,00 0,00 0,00 0,00 0,00 0,00 0,00 0,00 0,00 0,00 0,00
Loan repayments 0,00 0,00 0,00 0,00 0,00 0,00 0,00 0,00 0,00 0,00 0,00 0,00
Drawings/
dividends
181 197 197 197 197 233 230 253 314 279 268 281
TOTAL (B) 570,00 210,00 210,00 210,00 210,00 110,00 960,00 430,00 480,00 260,00 080,00 260,00

CASH BALANCES

-154 -169 -169 -169 -152 -188 -168 13 -229 137 70 69

Cash flow (A) – (B) 070,00 710,00 710,00 710,00 210,00 110,00 460,00 320,00 480,00 720,00 920,00 720,00

Opening balance

893 726 639 552 482 378 373 336 47 54 61

Closing balance 930,00 970,00 760,00 550,00 140,00 280,00 35 980,00 120,00 390,00 410,00 502,00 474,00

Page | 12
11. Undertaking a SLEPT Analysis

SLEPT analysis refers to a framework in which to assess an organization’s

external environmental influence on it.

S: Social Factors that apply to a geotechnical business include advanced education

level, mostly to employees, since the equipment used is complex to use and operate.

L: Legal Factors; the company has to adhere to laws and regulations, such as the

Employment Act, Intellectual property laws as well as consumer protection laws.

E: Economic Factors; Factors include growth rate, interest rates, fiscal policies as

well as inflation rates, all of which affect the level in which the company can operate

at, directly affecting the financial performance of the company.

P: Political Factors; includes among others the policies enacted by the

Government, Trade Unions, consumer protection as well as regulation of

competition. Loren Geotechnical Solutions intend to fully subscribe to all the policies

legally enacted.

T: Technological Factors; Technological aspects such as the rate of technological

changes, access to technology and infrastructure level. Loren Geotechnical

Solutions highly require the use of specialised as well as generic technologies/

Page | 13
13. SWOT ANALYSIS

STRENGTHS WEAKNESSES

 Educational background in a Project  Lack of financial capital

Management field

 Experience in operating a business

 Access to expert in Geotechnical

industry willing to work together

OPPORTUNITIES THREATS

 Government initiatives encouraging  New entrants dealing in

businesses and economic Geotechnical services

diversification

 Potential funds available from

commercial banks

14. Loren Geotechnical Solutions’ mission is to provide innovative approaches to

geological engineering services and to build effective long-term relations with our

clients with excellent services delivered in a timely and cost-effective manner.

15. BUSINESS PLAN

BUSINESS NAME AND ADDRESS

My business is Loren Geo-Technical Solutions (PTY) LTD. The business will be

based in Block 7, Gaborone. The business will be helping to manage and develop

Page | 14
geological projects, doing so by providing geological engineering services and

solutions in Botswana.

PROPRIETOR’S NAME AND ADDRESS

The business is owned by Ms. Loren. Ms. Loren currently resides at Plot 1234, Block

7, Gaborone.

BUSINESS FORM
The business will be undertaken in a form of limited liability Company, duly

registered in accordance to the CIPA Act in Botswana. The company will have Mr.

Desmond Thomas as a Director. Mr. Thomas is a former head of Geology

Department in KTM Geotechnical Services (PTY) LTD. The business has assembled

a group of highly respected geologists, engineers, hydrologists and other

professionals who have amassed a lot of experience in their respective industries.

The company will have a limited number of investors, and do not intend to go public.

BUSINESS ACTIVITY
Loren Geo-Technical Solutions will offer comprehensive Geo-engineering services

and solutions to diverse clients. The services offered fall under two main categories

being; Geotechnical engineering services, as well as construction monitoring (or

laboratory testing).

Some of the services offered are groundwater and surface water evaluation, bluff

studies, rocks and groundwater, slope stability analysis, laboratory analysis of soils,

settlement analysis as well as load testing. Each and every one project will be

customised to the client and their scope, depth, length, reach, uniqueness and cost.

AIMS
The aim of Loren Geo-Technical Solutions is to provide innovative approaches and

solutions to geological engineering services, as well as to build effective long lasting

Page | 15
relations and alliances with clients, delivering excellent services in a timely and cost

effective manner.

OBJECTIVES
Loren Geo-Technical Solutions has formulated the following three year objectives;

 Achieve a break-even point by the second year of operation

 Establish long term contracts with a minimum of four (4) clients

 Establish a customer satisfaction rate of at least 95%, aiding in establishment

of term strategic partnerships with clients whilst creating word of mouth

marketing.

MARKET SIZE AND GROWTH

Loren Geo-Technical Solutions will place greater emphasis on four main types of

market segments, which include local government, major construction companies,

real estate companies as well as water utilities parastatals. This is due to the fact

that these types of organisations have great needs and/or are the best capitalised of

all our prospective clients.

The construction industry has enacted laws that require certain certifications of safe

practices that include retaining wall and foundation load bearing capacities, geo-

instrumentation installation, as well as slope stabilities. Local government most often

require services that include earth science historical reviews and geomorphological

studies, whilst real estate companies often require fault mapping and bluff studies.

Utility organisations on the other hand often require a wide range of services that

include water and soil analysis, aerial photo interpretation, seismicity studies etc.

The geo-engineering industry continues to grow at a relatively fast rate, with an

approximate average of 22% growth over the last few years.

Page | 16
Whilst analysing the market using the five forces of profitability, it showed that the

greatest threat that currently exists in the industry is the new entrants into the

market, who seek to capitalise on the high growth that has been experienced. At

present, the competition among different geotechnical companies is moderate since

most of the competition is diminished because of the high growth rate. Most of the

competitors are able to enhance their profitability by simply keeping up with the

expansion in the industry.

Loren Geo-Technical Solutions’ most intense competition comes from ES

Consultants and KC Geotechnical. These companies provide a stern competition

due to their higher capitalisation and/ geographical proximity.

Clients most usually enter into contracts with geotechnical companies based on

aspects such as professionalism, reputation as well as quality of services that the

company previously rendered. Scope and prices are also a major part of accepting

offered contracts.

Table: Market Analysis

POTENTIAL YEAR YEAR YEAR YEAR YEAR

GROWTH
CUSTOMERS 1 2 3 4 5

Major construction
2% 12 12 12 12 12
companies

Local government 3% 18 19 20 21 22

Real Estate companies 4% 40 42 44 46 48

Utility companies 0% 6 6 6 6 6

Other 5% 10 11 12 13 14

TOTAL 4.36% 86 90 94 98 102

Page | 17
COMPETITORS

ES CONSULTANTS STRENGTHS WEAKNESSES

 Largest  No specialised

geotechnical firm in services

our proximity

 Possess a large

work force with

extensive

experience

 Great financial

standing

KC GEOTECHNICAL  Well established

 Long term track

record of quality

work

 Do have long term

contracts

LOREN GEO-  Access to experts  Limited finance

TECHNICAL SOLUTIONS in the

Geotechnical

engineering

Page | 18
 industry

COMPETITIVE ADVANTAGES
We will create competitive advantage in the industry by the following;

 Creation of long term contracts that demand consistent and regular monitoring

(and/or on-call services)

 Establishment of comprehensive service experience for clients that comprise

of consultation, in-house design, field and laboratory work, analysis, as well

as monitoring of geo-hazards.

 Keeping close contact with the company’s clients, and establishing a well-

functioning long term relationship with them to generate repeat business and

obtain a top-notch reputation.

PROPOSED CUSTOMERS
Our proposed customers are;

 Major construction companies

 Local government

 Real estate companies

 Water and utilities parastatals

The construction industry has enacted laws that require certain certifications of safe

practices that include retaining wall and foundation load bearing capacities, geo-

instrumentation installation, as well as slope stabilities. Local government most often

require services that include earth science historical reviews and geomorphological

studies, whilst real estate companies often require fault mapping and bluff studies.

Page | 19
Utility organisations on the other hand often require a wide range of services that

include water and soil analysis, aerial photo interpretation, seismicity studies etc.

ADVERTISING AND PROMOTIONS STRATEGY

Below are the platforms we will leverage on to boost our geo-technical services

company and to promote and advertise our business;

 Place adverts on newspapers, radio and TV stations.

 Encourage the use of word of mouth publicity from our loyal customers

 Leverage on the internet and social media platforms like; YouTube,

Instagram, Facebook, Twitter, LinkedIn, Snapchat, Google+ and other

platforms to promote our business.

 Ensure that we position our banners and billboards in strategic positions in

Gaborone and all around Botswana.

 Distribute our fliers and pamphlets in target areas around the country

 Advertise our business in our official website and employ strategies that will

help us pull traffic to the site

 Brand all our official cars and trucks and ensure that all our staff members

wear our branded uniform.

PRICING STRATEGY
Apart from quality, pricing is one of the key factors that gives leverage to

geotechnical services industry, it is normal for clients to go to places where they can

get services at a cheaper price which is why major players in the geotechnical

industry will always attract loads of customers.

Page | 20
We will ensure that the prices and quality of all the services that we offer are

competitive with what is obtainable amongst geotechnical companies within our

level.

PREMISES
The business has its main premises in Block 7, Gaborone. The premises include a

soil/rock and water testing lab, office spaces and conferences.

EQUIPMENT
The company have various equipment that will be used in our daily geotechnical

engineering services, some of which are abrasions machines, stability machines,

computerises CBR, compression testing machines, soil sampling augers, direct

shear testing equipment, triaxial testing equipment, data loggers, load cells,

transducers, pore pressure as well as load rings and indicators. All these equipment

will come in handy as the business aims to gain a bigger market share in the

industry. The company aims to procure more equipment in the near future.

KEY PEOPLE AND JOB FUNCTIONS

PERSONNEL FUNCTIONS

Ms. Loren President

Mr. Desmond Thomas Executive Director

Mrs. Edith Kgosi Office and Administration Manager

Mr. David John Projects Manager

Mr. Alex Pitso Staff Engineer

Consultant 1 Geo-engineering consultant

Consultant 2 CAD draft-person

Page | 21
BACKGROUND DETAILS OF KEY PEOPLE
Mr. Desmond Thomas is an alumnus of University of Cape Town where he obtained

a degree in Civil Engineering in 1998. Since then, Mr. Thomas has amassed

extensive experience in site specific government, commercial and residential

construction projects, including experience in project oversight, budgeting, resolving

engineering issues and so forth. In 2010, Mr. Thomas obtained a graduate degree in

geo engineering from University of Kansas. Mr. Thomas spent the last five years as

the head of geology department at KTM Geotechnical Services (PTY) LTD.

FINANCIAL HIGHLIGHTS
Turnover: BWP 2 990 000,00

Profit: BWP 281 260,00

Break-Even: BWP 2 881 333,74

Funding Requirements: BWP 1 640 000.00

Source of funds: Loans from Commercial Banks

Page | 22
REFERENCES

Diallo, A., & Thuillier, D. (2004). The success of international development projects,
trust and communication: an African perspective. International Journal of
Project Management, 237-252.
Fortune, J., & White, D. (2006). Framing of project critical success factors by a
system model. International Journal of Project Management, 144-150.
Gronroos, C. (2008). Service logic revisited: who creates value? And who co-
creates? European Business review, 298-314.
Jadidi, G. M., & Orouji, A. (2013). An Analysis of risk management stages in
projects. Twenty-Seventh International Conference on Power System.
Tehran.

Page | 23
 Break-Even Work sheet LOREN PROJECT MANAGEMENT CONSULTANCY
FIRM

PROJECT MANAGEMENT SERVICES January 10, 2022

For the January 1, 2021 –

Period: December 31 , 2021

Sales BWP 2 500 000,00 (A)

Less direct (variable costs)

Materials BWP 72 000,00
Direct Wages BWP 70 000,00
Other BWP 0,00
Total Direct Costs BWP 142 000,00
BWP 2 358
Gross Profit/ Contribution 000,00 (B)
Fixed
Costs (Overheads)
Wages/Salaries (including
taxes) BWP 1 800 000,00
Rent BWP 160 000,00
Utilities BWP 36 000,00
Advertising BWP 24 000,00
Insurance BWP 60 000,00
Transport/Travel BWP 120 000,00
Telephone BWP 4 000,00
Stationery/postage BWP 3 000,00
Repairs/renewals BWP 48 000,00
BWP 2 255 ( C
Total Fixed Costs (TFC) 000,00 )
BWP103
Net profit 000,00
Less drawings or dividends BWP 0,00
BWP103
Profit retained in the business 000,00
Break-Even Point = ( C ) x ( A ) / ( B ) BWP 2 390 797,29

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