Glossary
Draft under reviewEvery metric we use on the site and in the studies, explained in plain language.
- All-in budget
Everything you need to start the business and run it until it settles, not just the machine price.
The all-in budget adds up six parts: the equipment landed in Amman, installation and site preparation, licensing and registration, branding, packaging and opening stock, a reserve covering three months of running costs, and a 10–15% contingency.
It is always shown as a range, rounded up to the nearest 500 JOD, together with what it does not include, such as shop key money or a vehicle.
- Budget tier
A letter from A to E showing the size of the all-in budget.
A: under 3,000 JOD.
B: 3,000–7,000 JOD.
C: 7,000–15,000 JOD.
D: 15,000–30,000 JOD.
E: 30,000–50,000 JOD.
The tier is set by the upper end of the all-in budget.
- Risk index
A number from 1 to 10 summarising a project's risk: 1 is the lowest, 10 the highest.
Each project is scored 1–10 on six factors; the index is their average, rounded up to one decimal.
It is shown as a coloured gauge: green is low risk (up to 3.9), yellow medium (4.0–6.2), red high (above 6.2).
The index does not predict success or failure. It helps you choose the level of risk that suits you, and every factor has a written explanation in the study.
- The six risk factors
The six areas every project is scored on, 1 to 10.
Market: is there enough demand and clear buyers in Jordan?
Regulation and licensing: how clear, hard and costly the official path is.
Technical and maintenance: how easy the machine is to run and service, and how available support is.
Supply: how easy raw materials and spare parts are to get.
Capital at risk: how much money may not come back if the business stops.
Competition: how many local competitors there are, and how strong.
- Capital at risk
The part of your budget you might not get back if the business stops.
If a project stops, the machines can usually be sold for part of their price, but money spent on licensing, fit-out, marketing and stock is usually lost.
This factor is scored 1–10, taking the machine's resale value into account.
The higher the budget tier, the higher the minimum score for this factor, because more money is exposed. A bigger project therefore has to be stronger on the other factors to keep a low risk index.
- Idea criteria
Five 1–10 scores every idea gets before detailed research.
Competition, power and space, margin, spare parts and consumables, and licensing.
Each gets a 1–10 score and a colour: green works in your favour, yellow is medium, red needs attention. A short phrase next to the colour says what it means, such as "little competition" or "hard licensing". "Unknown" means there is not yet enough evidence to score it.
A high score does not exclude an idea; it shows what the project demands so you can choose what suits you.
- Landed cost in Amman
The machine price after freight, customs duty, sales tax, clearance and transport to your door.
The factory price alone is not enough. Landed cost = FOB price + freight + customs duty + sales tax + clearance fees + inland transport.
It is calculated per supplier from a written quote, and the range between the cheapest and most expensive reliable quote is shown.
Quotes are requested in US dollars because the dinar is pegged to it.
- FOB (free on board)
The machine price up to loading at the port of origin, without sea freight.
It is the price suppliers usually quote. Everything after that point (freight, insurance, customs) is on the buyer, which is why an FOB price is never presented as the machine's cost.
- HS code
The international classification number of a product, which sets its customs duty rate.
Every machine or product has a customs classification number. Candidate codes are identified during research, and a duty rate is only used after a customs clearance agent confirms it.
- Minimum order quantity (MOQ)
The smallest quantity a supplier will sell in one order.
We choose suppliers who will sell a single machine, so you never have to buy more than you need.
- Operating reserve
Money for three months of running costs, included in the all-in budget.
The first months rarely pay for themselves, so the budget includes enough to cover rent, utilities and other fixed costs for three months, so you are not forced to stop before sales become regular.
- Contingency
10–15% added to the budget for the unexpected.
Freight and exchange rates move and small unplanned costs appear. The margin is applied to the sum of the other all-in budget items.
- The three scenarios
Three views of monthly performance: weak, base and strong.
There is never a single profit figure. Each scenario is based on units sold per day, with the reason for each volume stated.
Revenue is rounded down, costs are rounded up, and no income is promised.
- Breakeven period
The number of months monthly profit needs to cover the all-in budget.
The upper end of the all-in budget is divided by each scenario's expected monthly profit and rounded up.
If a scenario makes no profit, no breakeven is shown and that is said plainly.
- Gross margin
What is left of the selling price after the unit's materials and packaging, as a share of the price.
Example: selling a unit at 10 JOD with 4 JOD of materials and packaging gives a 60% gross margin.
It excludes rent, wages and other fixed costs, which are counted in the scenarios.
- Variable cost per unit
The raw materials and packaging for each unit produced.
It is calculated from the bill of materials (how much of each input a unit needs) and the price of each input, plus packaging. It grows with output, unlike rent, which stays fixed.
- Confidence grade (A / B / C)
How reliable each figure in the study is.
A: a written quote or official document.
B: two independent sources within 15%.
C: one source or our estimate.
Every all-in budget line must be A or B before publication; C is allowed only in revenue scenarios, labelled "estimate".
- Estimate
A figure based on one source or our own calculation, not on a quote or document.
Every figure of this kind carries the word "estimate", so you know where to check for yourself.
- Verified on
The last date the study's figures were checked.
Every study is re-verified at least every 90 days, and immediately if exchange rates, freight or customs move materially.
Any correction to a published figure is dated in the change log, and buyers are notified.
- Projected vs actual
Study figures shown next to real figures from running projects.
When actual figures from an implemented project are available, with its owner's consent and without revealing who they are, they are shown next to the study's projections.
- Single-phase power (220V)
The normal electricity supply in Jordanian homes and small shops.
Most of our projects run on it. Some industrial machines need three-phase power, which homes usually do not have and which needs special wiring at extra cost.
- Licensing difficulty
A 1–10 measure of how hard, costly and slow the official licensing is.
1–2: basic registration only.
3–4: a municipal home-based or vocational licence.
5–6: one specialised authority, such as the JFDA, or extra safety rules.
7–8: several authorities or premises requirements, such as food production.
9–10: a restrictive or unclear path.
- JFDA (Jordan Food and Drug Administration)
The Jordanian authority for food, medicines and cosmetics.
Food and cosmetics projects usually go through registration or notification with the JFDA. The study sets out the steps, cost and time as verified on its verification date.
- Home-based business licence
A municipal licence to run certain activities from home.
Not every activity may be run from home, and the conditions differ by activity and municipality. They are checked with the relevant authority for each study, never assumed.
- Viability gates
Nine conditions every project must meet before its study is published.
The machines can be bought with written quotes and imported into Jordan, licensing is possible with known steps, there is market demand, raw materials are available, a beginner can run it, maintenance and spare parts are available, the business survives the weak scenario, and the all-in budget is computed and stated.