Entrepreneurship, Project Planning and Costing
This domain tests whether you can turn a technical skill into a viable small enterprise and then plan and cost the work. Expect the business model canvas, cost classification, break-even arithmetic, cash-flow awareness and simple project scheduling.
The business idea
An opportunity is a customer problem with paying demand - not just a product you can make. Define the value proposition and customer segment, test demand with real quotes or pre-orders, and check technical, market, financial and legal feasibility before spending. Register the business and know the licensing and tax obligations that apply.
Costs and break-even
Fixed costs do not change with output (rent, licences, salaries); variable costs rise per unit (material, consumables, piece labour). Contribution per unit = price − variable cost. Break-even quantity = fixed costs ÷ contribution per unit.
Project planning
Break the job into a work breakdown structure, list activities with durations and dependencies, then schedule with a Gantt chart or critical-path method: float = latest start − earliest start, and the critical path has zero float. Cost the job from quantities × unit rates, add overhead and a stated contingency, and track progress by work completed, not money spent.
Worked example. Fixed costs are 4,800 JD per month, selling price 12 JD, variable cost 7 JD. Contribution = 5 JD, so break-even = 4800/5 = 960 units per month. Selling 1,200 units yields profit = 400 × 5 = 2,000 JD, provided those units are actually paid for in cash.
Traps. Confusing profit with cash in the bank; leaving the owner's own salary out of fixed costs; pricing below full cost because only material was counted; treating contingency as extra profit.