Table of Contents

A. PARTICULARS OF APPLICANT
................................................................................................................4
B. PROJECT DESCRIPTION............................................................5
1.1 Introduction .............................................................................5
1.2 Project Geographical Location .............................................................................................................5
1.3 Objectives.................................................................................5
1.4 Skills In Relation To the Project................................................................................................6
1.5 Project Execution ....................................................................6
1.6 Competitive Advantage ............................................................................................................ 7
1.7 Number of People to Be Employed
........................................................................................................... 8
1.8 Justification of the Plot Size ............................................................................................................9
C. FINANCES .................................................................……………..10
2.0 Total Project Capital Costs ............................................................................................,,,,,,,...... …10
…
2.1 Proof of Financial Support to Develop the Plot
......................................................................................................... ..11
2.2 Project Cost Recovery Plan ......................................................................................................... ..11
2.3 Financial Projections ............................................................................................................12
2.4 Benefits to the Owner, Society and Economy
...........................................................................................................13
2.4.1 Owner...............................................................................13
2.4.2 Society ..............................................................................13
2.4.3 Economy............................................................................14
D. ENVIROMENT AND HEALTH SAFETY
.............................................................................................................15
3.0 Environmental Impact Assessment.......................................................................................15
3.1 Socio-Economic ......................................................................15
3.2 Land Use.................................................................................15
3.3 Waste Management ...........................................................................................................16
3.4 Ecological ...............................................................................16
3.5 Occupational Health and Safety ........................................................................................................
16
3.6 Archaeological Issues ........................................................... 17
3.7 Environmental Management Plan
........................................................................................................... 17
3.7.1 Mitigation Measures for Some Identified Impacts
......................................................................................................... 17
3.8 System of Waste Disposal (Chemicals, Contaminants, Sewerage and Waste Water).......... 19
3.9 Prevention of Fires or Fire Fighting.................................................................................................19
E. FEASIBILITY AND MARKETING
.................................................................................................................16
4.1 Viability of the Project .............................................................................................................16
 4.2 Possible Risks Associated With the
Project.................................................................................................. 20
4.3 Target Market, Market Size and Market Risk
.............................................................................................................21
4.4 Market Strategy ............................................................................18
4.5 Swot Analysis ............................................................................. .18
F. CONCLUSION ..........................................................................................................19
G. DECLARATION ............................................................................................................ …19

Appendices .................................................................................................................................................. 19
LIST OF ANNEXES

Annex 1 - Original receipt

Annex 2 - Certified copy of Omang

Annex 3 - Letter of Financial Support

Annex 4 - Letter of Financial Support

A. PARTICULARS OF APPLICANT
1.0. PROJECT DESCRIPTION

1.1 Introduction

As a woman, and aspiring business person and warehouses and supplies industry enthusiast,
it is my ultimate dream that one day I become a property owner that will assist in
alleviating the storage crisis in our country. Some benefits obtained from this business will
be sown back unto the community either through donations to the needy and charity
foundations.

It is therefore through this motive that I apply for an industrial plot to enable me to
realize the above mentioned dream as I am fully committed to embark on the project right
away in the event my proposal is successful.

Tati Siding is growing at an alarming rate and it being near to the City of Francistown is
advantageous. More international companies will start up their operations in Botswana and
local businesses will compete for the available warehouses and storage industry. According
to Section 29 of the SEZA Act, Francistown which is 15km to Tati-Siding has been legally
recognized as a special economic zone. Currently the Special Economic Zones Authority
(SEZA) is in a process to constructing the state of the art inland logistics hub, it is mainly
mining and modern logistics hub which is expected to serve the rest of Africa hence the
demand for warehouses and supplies.

1.2 Project Geographical Location

The proposed warehousing and Supplies development would be located in Tati-Siding

which is one of the fast growing village in Botswana and is situated about 15km from the
City of Francistown. The plot being applied for is Plot 10076.

1.3 Business Objectives

 To provide affordable, high quality warehouse and Supplies facility for local and
international companies that operates in Tati-Siding and Greater Francistown area,
Government and private sector i.e. Council and Land Board , Education and
Prisons etc.

 To invest in the property market – a hedge against inflation

 To provide employment opportunities throughout the life cycle of the project

to Batswana especially those living within Tati Siding. This will improve the
standard of living of those employed as well as improve the economic status of the
country.

 To help in diversifying the economy.

1.4 Skills in Relation to the Project

Although I do not have any skills and experience in Warehousing and Supplies Industry l am
passionate for this industry, something which will be pivotal to success. Notwithstanding this,
I will also put in place all the required technical and professional support to make sure that
the project becomes successful. Well qualified personnel in the areas of property
development will be engaged to assist in the project.

1.5 Project Execution Including time and milestones:

My aim will be to provide high-quality, comfortable and affordable secured warehouses
in Tati Siding. Therefore, l will offer state-of-the-art living conditions reflective of the
rapid advancements in technology and a growing need for quality warehouse and supplies.
Unlike many other warehousing and storage developers that are solely concerned with
turning profits, my primary objective is to maintain the highest level of customer satisfaction
achievable.

The proposal would ensure designing and developing to meet the following
important planning parameters:

 Parking provision at a rate of 1 parking bay, including one

for the disabled

 Common open space will be at 10% of the total plot size and will not be

traversed by any sanitary facilities

 A refuse bin area will be provided

 A fire plan showing all fire prevention measures will be provided

The proposed project will be executed as per table below:

Summary of Project Activities

PHASE Activity/Task Duration

Phase 1 -  Allocation of the plot by Tati Land 3 months

Planning Board
 Preparation of a title deed
 Securing funding
 Preparation of Architectural & Structural
Engineering Drawings
 Preparation of Bill of Quantities
 Issuance of Planning and Building permission
 Consultation with the Department of
Environmental Affairs regarding EIA/EMP
clearance

Phase 2 -  Site clearance 9 months

Construction  Purchasing and Delivery of Building Material
materials
 Foundations
 Super Structure
 Roofing
 Plumbing
 Electrical Wiring
 Finishes
 Ancillary structures (Guard house)
 Landscaping of parking bay
 Phase 3 -  Issuance of occupation permit Ongoing,
Operation  Occupation of the warehouse and storage facility indefinite

1.6 Competitive Advantage

The warehouse and storage facility will be designed using modern architectural
designs and will employ the latest building technologies. The facility will be fully wired with the
available modem jacks and Ethernet access. Alarms and cameras will be in place
to strengthen security.

Our marketing and advertising costs will be low due to simple marketing strategies.
However, the owner's expertise in visual layout and communications will help create a
unique and aesthetic product for the customer.

1.7 Number of People to Be Employed

i. During Construction

Upon allocation of the plot a surveyor would be engaged to survey the property to facilitate
preparation of a title deed in close consultation with a lawyer to undertake the conveyance
processes. An architect would be engaged to prepare architectural drawings for the
envisaged warehouse and storage facility development. In addition, by nature and virtue of
the size of the proposed development the services of a structural engineer would also be
sought. Upon approval of the plan, there will be need to engage an environmentalist to
prepare a detailed Environmental Impact Assessment or Environmental Management Plan
as per recommendation or advise from the Department of Environmental Affairs. The
services of a quantity surveyor will also be sought to give an estimate of the construction
costs. Once the detailed Environmental Impact Assessment or Environmental
Management Plan has been approved – construction shall commence.

During construction, 3 brick layers, 2 carpenters, 2 electricians, 4 general labourers, and 2

drivers will be employed. The labourers will comprise of mostly the residents from the
local community. A qualified project supervisor will be sourced out to ensure that all
goes according to plan.

A site manager and the architect would be on site to ensure all goes according to the
approved plans.

A landscape architect who will facilitate the landscape design of the plot to enhance
aesthetics will be engaged.

ii. During Operation

Estate Manager: For overall property management

Four Guards: For security issues

Two Grounds man: for yard landscape maintenance- tree cutting, watering and general
maintenance of yard

Two Part-time electricians/plumbers: To attend all maintenance and repair issues. In total the project will
employ 29 people therefore I strongly feel that the project of this magnitude will contribute to the country’s
goal of poverty eradication.

1.8 Justification of the Plot Size

The proposed plot is 10076 in Tati -Siding measuring 1740Ha/SqM It is the right amount of
land to fit my entire desired features being the 1 x medium& 1 x small warehouses and
supplies facilities and parking lots.

The proposed developments within the plot will ensure that the plot is utilized to its
maximum while observing the statutory regulations.

The proposed developments will constitute of two warehouses.

All planning and building parameters will be observed as per the Urban
Development Standards of 1992, Development Control Code of 2013 and the Building
Control Act.

The following layout facilities will be included in the proposed plot and I have indicated the
size of land needed.

 2 x Warehouse and supplies facilities

 Functional parking and Traffic circulation

 Fire assembly point

2.0 FINANCES

2.1 Total Project Capital Costs

My start-up capital requirement is estimated to amount to P 2, 190, 000.00. Included in these

costs is all the development costs related to the project.

Start-up Capital for the Proposed Project in Pula

Stage Activity Cost (Pula)

Design  Architectural Drawings 95, 000.00

 Structural Drawings
 EIA/EMP
Earthworks  Site clearing 350, 000.00
 Setting out
 Cut & fill
 Compaction

Sub –Structure  Concrete footing 750, 000.00

(Foundation)  Compaction
 Anti-ant treatment
 Reinforced Concrete floor slab

Super- Structure (Walls)  Brick work 390, 000.00

 Brick force
 Fiber cement sill to all window
openings

Roof Covering  Timber trusses and battens 680, 000.00

 Water proofing membranes 7
flashings
 Insulations & wall plates
External works  Drainage layout, backfills 350, 000.00
 Paving
 Installing pipes
 Wiring
 Installing meter & distribution
boxes

Carpentry & Joinery  Skirting & quadrants 250, 000.00

 Internal doors to be hollow-
core
 Kitchen Units (Tops, Doors,
Handles & curtain rails

All these funds will be sourced from financial institutions such as CEDA, First National
Bank, Barclays Bank, Banc ABC etc. (See attached CEDA offer letter)

The construction is of stock brick walls plastered on the inside and externally
rendered and painted in earth colors to blend with the environment. The roof will be
constructed with concrete roof tiles. The external design includes gardens and walkways
with spacious common open spaces. Parking bays will be provided as per the
requirements of the Development Control Code 2013 with functional drive ways.
Refuse bins cells will be conveniently located for easy accessibility.

2.2 Proof of Financial Support to Develop the Plot

Funds to undertake the preliminary activities of the project (phase 1) e.g. architectural
drawings will be sourced from my available financial resources but in view of the size of the
project, additional funds will be sourced from financial institutions such as CEDA. Citizen
Entrepreneurial Development Agency (CEDA) has been approached as the appropriate
financial lender as its mandate is to empower citizens economically. The advantages of
borrowing money from CEDA are low interest rates, long grace periods, longer and
flexible repayments period, not strict on security (property)-collateral and they offer free
business advisory services. CEDA’s aim is not profit oriented but to assist the community.
See the attached letter from CEDA.

2.3 Project Cost Recovery Plan

The investment would constitute a development of warehouse and storage facilities for
rental purposes. Clients would be charged market rental of P35000 each for the two.
However, in the event that market rentals have increased upon completion of the project
these will be adopted. Rent accruing from the tenants would constitute my major revenue
source to recover costs as well as facilitate repayment of the loan. The recovery plan
would be done in close liaison with the project funder namely their financial advisor so
that they would be in a position to advice on possible market rentals, returns on the
investment and repayments.

2.4 Financial Projections

2.4.1 Projected Human Resources and Annual Expenses

Annual Salaries (Pula)

Employees 2021 2022 2023

General Manager 240,000.00 252,000.00 264,600.00

2 X Gardner’s 36, 000.00 37,800.00 39,690.00

4 x Security Guards 115,200 120,960.00 127,008.00

TOTAL 391,200.00 410,760.00 431,298.00

The total cost of manpower per month will be BWP 32,600.00 when the warehouse and
storage facilities are fully operational for the first year. Then after 5% increments every year
and it averages to BWP 410,760.00 and BWP431, 298.00 annually in 2022 and 2023
respectively.

Other Annual Expenses

Insurance 28,000.
Marketing & Advertising 18000.
Maintenance 10, 000.
Total
56,800.

2.4.2 Estimated Monthly and Yearly Income Generation

With aggressive marketing the project will be fully occupied at a rental price of P35, 000.00
per warehouse. This means that the warehouse and storage facilities have a potential to make
at least P70, 000.00 per month.

The table below indicates the total market potential for the business and anticipated income
generation for the first year of operation.

Income Generated Monthly Income Yearly Income

2 warehouse @ P35000.00 P70, 000.00 P840, 000.00
each per month

2.4.3 Profitability and Performance Ratios

Description 2021 2022 2023

Rental Charges P840, 000.00 P924,000.00 P1,016,400.00
EXPENSES
Maintenance of P20, 000.00 P10, 000.00 P10, 000.00
the buildings
Salaries P391200.00 P410,760.00 P431,298.00
Insurance P28, 800.00 P28, 800.00 P28, 800.00
Marketing & P18, 000.00 P12, 000.00 P8, 000.00
Advertising
Total Expenses P458,000.00 P458,000.00 P554,180.00
Net Profit before P382,000.00 P420,200.00 P462,220.00
Tax

2.5 Benefits to the Owner, Society and Economy

2.5.1 Owner
The project would be of benefit to me, as it will improve my own livelihood. I would have
invested in the property market - a hedge against inflation.

Being your own boss is another wonderful benefit, as long as one is responsible. One will be
responsible for making all decisions good and bad they all fall on one’s shoulders.
However, since there will be a financial advisor and property manager, they would be
consulted when some decisions have to be made. The owner enjoys the profits resulting from
a successful operation

2.5.2 Society

The warehouse & supplies development will benefit the community of Tati-Siding in
terms of employment creation, provision of additional decent and affordable warehouses and
attraction of further investment in the village

2.5.3 Provision of good quality storage facilities

The Tati-Siding community would benefit in terms of provision of good quality

storage facilities – this would improve the aesthetics of the village. The envisaged
development is mainly targeting the big national and international companies or the
Government departments who can afford the rentals.

2.5.4 Attraction of investment to the village

When people look for investment opportunities one major factor which they
consider is the population and affordability as it has a direct effect on the end product.
With increased developments and many people residing in the area, there would be need for
other services such as transportation logistics, shops to buy low order goods and
accommodations. As a result, the development would attract investors, other service
providers as well as utility providers as there would be a market for their product.
 2.5.5 Employment

The project will create employment to people in Tati-Siding during pre-construction,

construction and post construction. During pre-construction, this will include people who
will design the plan, water connection, land surveying, preparation of title deeds and
power reticulation. During construction phase, the local people will be employed for site
preparation, site clearance, building the warehouses and associated works and during the
post construction phase there will be local people employed in refuse collection, security,
property management, and some employed as maids. That will also trigger other
employment opportunities in other sectors such as transportation.

2.5.6 Economy

The project will increase economic activities in and around Tati-Siding. The project will also
introduce an opportunity for economic growth in the supplier chain market as well as the
real estate sector. In future when rates (property tax) are introduced in Tati-Siding, Council
would benefit monetarily (income) as I will have to pay rates for the property. In addition,
the country will benefit economically in the form of tax revenue that will accrue to
government from these warehouses and supplies project.

3.0 ENVIROMENT AND HEALTH SAFETY

3.1 Environmental Impact Assessment

The revised Environmental Impact Assessment Act, 2011 is aimed at promoting
sustainable development in all the development initiatives. The Act provides for the carrying
out of Environmental Impact Assessment (EIA) studies to assess the potential effects of
planned development, provides mitigation measures for such activities as some of them may
have a significant adverse impact on the environment. Monitoring and evaluation of the
environmental impacts of the activities to be implemented is also taken on board in the EIA.

For this project, upon allocation of the plot, a Preliminary Environmental Impact
Assessment (PEIA) will have to be submitted to the Department of Environmental
Affairs who in turn would advise if there is a need for a detailed EIA or EMP. The
recommendation from department of Environmental Affairs (DEA) would constitute the
basis on the way forward. However, some of the key potential adverse impacts on the
environment which may be identified among others are as follows:

3.1.1 Socio-Economic
The proposed development would benefit Public Sectors, Para-statal and Private sectors
both in Tati-Siding, the greater Francistown and in the District. There would be a benefit in
terms of local economic development and related multiplier effects such as attraction of
other forms of investments e.g. transportation and as well as provision of decent storage
facilities. There may also be negative impacts such as increased traffic in view of the
large number of companies that will operate within the area as well as an increase in
criminal activities, increase in HIV/AIDS and STI’s as workers may develop relationships
among themselves and with other people in the village etc.

3.1.2 Land Use

The potential impacts identified under land use include disturbance to the aesthetic quality of
the landscape due to construction rubble, improper siting of contractor’s camp but these
will occur at the time of constructing the warehouses. However, at the time of operation the
aesthetics of the area will be enhanced as high quality warehouses and supplies would be
constructed with all the ancillary facilities. Of worthy to note is the fact that the
proposed development is compatible with the land use itself and the land use of the
opposite street neighborhoods which is predominantly hotel and the civic and community
plots.

3.1.3 Waste Management

Inadequate management in general and the uncontrolled disposal of waste are some of the
key issues that can negatively affect the environment. To address these issues, proper
measures have to be put in place to ensure compliance and maintenance of pleasant
environmental disposition in and around the proposed development site. A lot of
construction waste, namely construction rubble, cements bags, plastic, cuttings from tiles;
timber etc. will be noted during construction. However, once construction has been
completed, the site would be cleared and disposed to official disposal sites to ensure
that it is aesthetically pleasing. During operation not a lot of other types of waste except
packaging waste and a minimal of domestic waste is expected to be generated from the
warehouses & supplies development. Therefore, the project will promote an environmentally
sound waste collection, treatment and disposal.

3.1.4 Ecological

In the project area, there is little or no vegetation as well as wildlife. However, in the event
that there are mature trees on site, efforts would be made during construction to preserve
them as per EIA recommendation. As a result the main ecological impacts which may
occur are soil erosion resulting from vegetation clearance as well as soil contamination
from oil spillages from the concrete mixers and construction vehicles. These ecological
impacts may result from several construction activities which involve movement of heavy
machinery, spillages of oil lubricants and improper waste management on site.

During construction, caution will be taken in selecting suppliers of non-renewable

materials namely aggregates such as sand or gravel by ensuring that these are bought
from local companies that have permits to extract such as aggregates. This will be a way to
contributing to environmental protection.

3.1.5 Occupational Health and Safety

There will be earth moving, hauling etc. activities during the construction period. Noise
and dust generated from these activities will not only affect the employees on site but people
within the vicinity too especially those in close proximity to the plot in question. Thus it
is important that precautionary measures be taken into consideration to minimize
the effects of such activities on both employees and all concerned parties.

In addition, protective clothing such as safety shoes, overalls, musks, ear muffs, hard hats
should be worn at all times by the construction crew for safety reasons

3.6 Archaeological Issues

During excavation, archaeological material might be discovered, hence the need for close
liaison with the Department of National Museums and Monuments. Depending on the
findings of the Archaeological Impact Assessment if recommended it may be ideal to have
an archaeologist on site during excavation activities.

3.7 Environmental Management Plan

An Environmental Management Plan (EMP) would constitute an important working
document in terms of proposing some important mitigation measures in terms of the
identified impacts. An EMP ensures that a clear approach to the management of identified
environmental impacts during preconstruction, construction and decommission to prevent
long term or permanent environmental degradation as a result thereof. The EMP will ensure
a fulfillment of the following objectives:

 Defines statutory and policy obligations that must be fulfilled and identified

Key stakeholders

 Assigns clear and appropriate actions and responsibilities for environmental

 Management

 defines monitoring requirements which enable assessment of environmental

Importance

3.7.1 Mitigation Measures for Some Identified Impacts

Environmental Activity Environmental Mitigation Responsibility

Component Aspect
Socio Site clearance and Employment Priority to be given Contractor
economic other related work opportunities to locals

Public health Noise generation Air quality Ear plugs to be Contractor

and dust nuisance provided to
due to construction employees.
activities
The contractor shall
adopt a wetting
programmer (water
sprinkling) to
control/suppress dust
evolution

No construction
activities to be
undertaken after 1700
hours

Waste Waste Improper Workers to be given Contractor

management Disposal disposal general educational awareness
waste lessons on the
importance of
keeping their
environment clean

Adhere to proper
disposal of the
different types of waste
and dispose at the
designated waste
disposal sites

Develop and
implement a waste
management strategy

Ecological Chemicals and Soil Re-fuelling must take Contractor

lubricants (oil) Contamination place in nearby filling
spills, waste disposal due to spillages stations
and waste
The proposed project by its nature has very minimal noise, vibration, air pollution, fire
hazard or noxious emissions that will disturb or endanger neighboring properties.
3.8 System of Waste Disposal (Chemicals, Contaminants, Sewerage and
Waste Water)

There will be no chemicals or contaminants as there would not be any storage of such
stock at the premises. However, in the event that there is need for the disposal of chemicals
and contaminants, this will be done at a dumpsite in Tati-Siding or the local landfill
through close consultation with the Public Health Department.

At the time of construction, the contractor will be expected to provide adequate sanitary
facilities (mobile toilets) for the workers. However, upon the completion of the
warehouses development, the facility would use conservancy tank but in the event that
conventional sewer line has been constructed in the area, the warehouses would be
connected to the main sewer line.

3.9 Prevention of Fires or Fire Fighting

Firefighting constitutes an important component in any structure as electricity would be used

at all times. Plan submission for scrutiny by the relevant departments at North-East
District Council will be undertaken to ensure that appropriate advice and guidance is given.
As for fire prevention, a fire plan will have to be scrutinized by the fire department at North-
East District Council prior to the final approval of the plan. In the plan, additional features
such as fire exit doors, smoke detectors, fire resistant doors, fire extinguishers, fire hose
reels and the hood and sprinkler systems would constitute an important component in
terms of firefighting. These would also be taken into consideration in the design of the
building especially their location. A fire assembly point within the premises will have to be
demarcated to assist in establishing that all people within the buildings have evacuated
once there has been an outbreak of fire.

E. FEASIBILITY AND MARKETING

4.1 Viability of the Project

Marketing is the identifying, anticipating and meeting client needs and wants in a
mutually beneficial process. As a result the success of any business lies amongst other
things on the management and a sustainable sound market.

I undertook a cost benefit analysis that indicated that warehouses development in

Tati-Siding is a viable project. Tati-Siding being 15km from the City of Francistown will
lead to more demand on warehouses. According to Section 29 of the SEZA Act, Francistown
has been legally recognized as a special economic zone. Currently the Special Economic
Zones Authority (SEZA) is in a process to constructing the state of the art inland logistics hub,
it is mainly mining and modern logistics hub which is expected to serve the rest of Africa
hence the demand for warehouses and supplies.

The project will provide complete warehouses using the latest building technology to
facilitate comfort of local and international investors in Tati-Siding and the City of
Francistown. It will have employees that are courteous and fully trained on the operation
of services required in warehouses and supplies industry. The premises will always be
clean, well maintained, and inspected regularly for safety and comfort.
In an effort to encourage development in the warehouses and supplies sector, financial
institutions are issuing loans to potential developers and I will apply for a loan once the plot
has been allocated. In addition local television programmers such as Property 4U have been
eye openers to the effect that property development is a viable business venture.

4.2 Possible Risks Associated With the Project

As a prospective entrepreneur I am aware that there is always a risk in every project. Whilst
there is certainly some level of risk in any new business, the process of starting a business
15
should not be about taking risks, rather it should be about managing the risk that is involved
for one to achieve his goals.

One of the major considerations is risk due to uncertainty surrounding the business as no
business is a sure thing as the economic environment may change but much of the
uncertainty can be resolved through analysis of the market, the operation modem and
financial model.

a) Market risk: The market is a result of many factors, whether the market will be in
existence for a long period, whether the market is growing or whether the market is
large enough to support my business, what trends exists in the business and how
competition is structured. The issues of market size is important because in the
event that other developers may construct warehouses earlier than my proposed
project then this would result in our prospective tenants renting out from them.

b) The economy may not remain stable (recession) – positive growth due to
international or regional economic developments or high inflation may reduce the
demand for services. Where the demand for some services may be reduced it
may result in some of the businesses shutting down or relocating which may
reduce my clientele. Some economic factors may result in retrenchments in some
economic sectors this will affect my business.

c) Fire may ruin the whole business. On provision of essential fire equipment may
result in failure to extinguish a fire out break and this may burn down the whole
business. However, as a measure to address it there is need for an insurance to be
taken against the development.

d) Operational Risks: This deals with whether the business can set up internally to
deliver services to customers effectively. If the warehouses development is not up to
the expected standard of tenants, air conditioners, fully fitted alarms and cameras,
open spaces etc. not available they may not lease out my facility which may result in
viability problems especially in terms of loan repayment.

e) Financial Model Risk: refers to the risk that the business would not work due to
various reasons. For any business, there should be some financial projections to get
a picture of where breakeven will occur and what will drive the business financially
- there is need for a clear picture of what revenue and costs must be in order to
make business financially viable and what factors impact revenue and cost the most.

4.3 Target Market, Market Size and Market Risk

My target market for the warehouses development would be mainly Private
sectors(companies locally and internationally. e.g., Choppies, Furniture mart etc. international
investors. The market size is more than adequate looking all the institutions above. There
are needs for storage facilities -hence there is also a market in the education sector.
Market risks would be resulting from a reduced demand for warehouses and supplies
facilities. This reduced demand could emanate from a high boom in property or rental prices
which may lead to low demand. Furthermore, large companies may be allocated more land
to develop more warehouses which may pose a serious threat to my business. There may be a
high number of changes of land uses from civic and community plots which may lead to
saturation of the market and thus lowering the anticipated rentals.
4.4 Market Strategy
In terms of the market strategy it is important to identify competitors. Questions such as the
following may need to be answered with regards to competitors: Who are my competitors?
What customer needs are you competing to meet? What are the similarities and
differences between my product and theirs? How do their processes compare to yours? How
are they doing overall? How do you plan to compete? E.g. offer better quality services, lower
prices etc.
16
It is impossible to be successful without good marketing and sales techniques.
Marketing would in turn mean knowing who my potential customers/clients are and getting
close to them such that I can virtually anticipate their desires.

My marketing strategy is to understand my target market clients to assist me to focus on

their needs so that I would develop to meet their requirements. This would include
approaching all my potential clients to make my proposal, advertising and making the
community aware of my development by distributing flyers/brochures about my envisaged
project, making housing offices in government institutions aware of my proposed
warehouses development. On the overall, potential clients would be approached and the
selected letting agent would be approached to assist in marketing my proposed
development.

As part of my marketing strategy, I would also need to have an advertisement and

promotion plan. The plan would include target markets, promotional campaigns,
features and benefits I would like to convey to them. It is important to follow current
technology trends in terms of advertising. Social media like Facebook will be used for
advertising. Facebook is a platform that literally almost everyone uses on a daily basis. I
plan on also creating a website for my business where everything regarding the property
will be placed.
4.5 Swot Analysis
It is important that an analysis of the strengths, weaknesses, opportunities and threats be made
to assess the viability of the project:

Strengths
The current state of the property market is a major strength for financial viability. As long
as the property market retains its good prospects the project will attain its objectives if
implementation could be undertaken soon. I will provide safe quality storage that provides
state-of-the-art amenities at competitive prices.
Weaknesses
The inherent weaknesses of the proposed development are as follows:
Although the project has coincided with a boom in the property market, it is difficult to
predict how long the boom will last. It may not well be that the end of the boom is in sight
considering the fact that we have already gone through 7 years of this cycle.

National Statistics on inflation indicated that building costs are increasing at an average
rate of 12% per annum. This trend I set to continue since inflationary pressures in the cost
of building is imported from South Africa and the country has no control over it.
Opportunities
The Land Board allocation process generally does not keep pace with demand for all types
of uses and hence there will always be a demand for warehouses and supplies in rapidly
growing villages such as Tati-Siding,

There is a relative case of access to development credit as the property boom persists
and cautious competition exists between the major financial institutions for the few
lucrative businesses around.
Threats
The cycle of the boom and slump in the property market presents the greatest threat to
the project. Given the small and rather fragile nature of the property

Market, the realities of this cycle pose a potentially devastating threat to a scheme such as
this.

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The combine effects of the above strengths, weaknesses, opportunities and threats means
there is a risk factor attached to the proposed development. An attempt has been made to
calculate the risk factor. The rate of returns as projected under final projections shows that
this is a viable project looking at market forces and the property boom. If the project
goes ahead as planned, substantial rewards await the promoters over the long run.
F. CONCLUSION
It is clear from the target market, financial projections, and environmental impact
statement that this is a well-conceived project with minimal negative environmental impacts
but is a profitable venture. Its implementation will also attract other forms of investment by
other sectors.

Therefore, with the relevant knowledge and expertise I possess, I will ensure that a project
of this nature becomes successful and goes a long way in contributing to the well-being of our
economy in Botswana.

G. DECLARATION
I, …………………….declare that I do not own any business plot anywhere in the country.

Signed: _____________________
(ID No. 379 722 703)

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