ENTREPRENEURS

and Project Developers

Your business needs

As an entrepreneur or project developer you have to carefully balance the amount of work you can do against the available funds, while still delivering a profitable and sustainable venture.  The shortage of funding in the beginning of any project means that you cannot afford to reinvent the wheel,  you need a trusted advisor with depth of experience and a proven process who can help you turn your idea into a funded project that will deliver an optimised facility.

OTC will work with you to:

  1. Develop the business case so that you can confidently apply for and secure funding for the venture
  2. Provide you with experienced resources and skills that will assist and guide you through the process of intiating and executing the project
  3. Help initiate the project and set up and manage the contracts with the engineering contractor and other third parties who will execute on your behalf

 

The outcome is a project that is properly financed and positioned for successful execution, with both the developer and OTC having a stake in the longer term sustainable business.

OTC works with selected project developers and entrepreneurs to solve the following challenges

Challenge #1:  Lack of funding for pre-feasibility and feasibility studies

Entrepreneurs often don’t have a strong balance sheet and are therefore dependent on external funding to develop the project.

How OTC tackles this problem

OTC provides tools, training and consulting expertise to develop the business case with you, and as required to do the desktop study, the pre-feasibility and the bankable feasibility study.

OTC will be willing to invest in selected ventures with the developer in return for equity in the business, or deferred compensation.  We are very selective in  the projects that we invest in;  they must align with our strategy to add long term value and where we have the expertise and experience to contribute materially.

Challenge #2:  Limited marketing or financial skills.

Entrepreneurs and developers often don’t have the experience in marketing and financial management to adequately develop an opportunity to secure funding and to run a successful business.

How OTC tackles this problem

OTC works with the developer to make sure the business case is properly developed to include market factors and to properly model the financial sensitivity.

We are also able to assist with the following:

  • High level market research
  • Supply/demand forecast and balancing
  • Price sensitivity analysis
  • Forecasting and projections
  • Developing financial and economic models
  • Preliminary supply chain and logistics development

OTC will usually work closely with the developer as part of the executive team that sets the strategy and direction for the proposed new business.

Challenge #3:  Lack of owner project skills.

Project developers often have a strong technical background and lack the experience in initiating a capital project.  

How OTC tackles this problem

OTC supplies resources into early stage projects to take on the owner role.

Members of the OTC owner team:

  • Provide experienced resources
  • Provide training, coaching and guidance to the wider team during the early stages of the project
  • Facilitate and participate in workshops

Challenge #4:  Lack of a methodology or approach.

Project developers have usually not worked in a project environment for an extended period and might not have the experience to properly direct a large capital project from initiation to execution.  

How OTC tackles this problem

OTC aligns the project deliverables to decision milestones using a proven stage-gate process.

The OTC resources apply the OTC methodology to the project development and direct the work in the most cost effective manner through the stage-gate process.

Members of the OTC owner team:

  • Apply the correct methodologies at the right time in the stage-gate process in line with the OTC Toolkit Framework
  • Provide and use templates and other tools that have been proven in similar projects
  • Guide the entrepreneur through the decision making processes needed to successully set up the project for success

Challenge #5:  Entrepreneurs need to establish an operating business in parallel with the project

This means that the entrepreneur/project developer will usually not have sufficiant time and capacity to mange both the business and the project effectively  

How OTC tackles this problem

OTC personnel act as members of the owner team until suitable permanent personnel have been appointed.

The activities include.

  • Developing the business plan
  • Developing the design philosophies
  • Develop operaging and maintenance philosophies
  • Develop manpower requirements for the operating business and timing of establishing this permanent structure
  • Identify training and development requirements for the permanent staff
  • Identify and recruit suitable resources
  • Specify business systems and establish the IT organisation to serve both the new operating business and the project

Challenge #6:  Entrepreneurs might need to sell the business during project development or at the end of the project for a variety of reasons

Ensuring that the value of the business is maximised all the way through the project development is important to ensure a return on investment and to be well posioned in the event of a merger, sale or restructuring of the business.  

How OTC tackles this problem

OTC is aware of the importance of optimising the value of the project at the time of sale and will help ensure continuty during and after the transfer.

The activities include.

  • Valuation of the project at different stages of development
  • Proper governance and stewardship in terms of intellectual property and moveable assets,  including licences, technologies and design documentation
  • Developing a handover plan to the new owner
  • Providing resources through the transition process

Results achieved

OTC are actively working with a number of entrepreneurs and project developers on projects in Africa in oil and gas, paper and energy.  For more details and reference information please contact us,

 

Gasconsult contracted OTC in October 2017 to support them in developing a prefeasibility study for a CBM to LNG facility in Botswana. The work included an LNG marketing study and optimum plant sizing; technical scoping and economics of the overall facility – both Gas Field Development and LNG facility. The study was delivered in May 2018. OTC worked throughout in a timeous and professional manner and delivered a high quality and comprehensive report.

Bill Howe

CEO, Gasconsult

In the first instance it is necessary to highlight the fact that the depth of the pre feasibility study has gone far beyond the normal scope of such a study. The work undertaken by OTC has enabled a exceptionally good definition of most of the complex and gives confidence that the estimates and models will be much more representative of a final study than is usual at this stage. A similar situation exists with regard to the location studies, the services availability and the transport requirements for plant equipment and eventually for product shipping. The fact that the plant will produce products meeting modern fuel standards gives complete assurance that the risks involved with product marketing have been minimized.

John Marriot

Independent Chemicals Professional

For more information on our offering for entrepreneurs and project developers

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