An Idea in the making

After walking around on the land for a few days and trying to figure out where to put the new warehouse, I started thinking about the micro goat project Jackie funded, I thought to myself; we should be practicing what we preach. If we are telling the ladies that are looking after the orphans to become self-sufficient, then we should be doing the same? I thought, if something should ever happen to Jackie and I, then all these people who have based their future hopes on us, will be left out in the cold.

So I have come up with several plans that we are implementing right now to get our Community Conextions Charity here in Swaziland totally self-sufficient as soon as possible.

Since receiving the land a few weeks ago, we have already fenced in the whole property and started building a distribution warehouse that is 15m x 25 m (45ft x 75ft). We have started a separate company to run along side the charity to operate in the beginning, 6 new business ventures. All the profits will be rolled into the charity as they come in.

Here’s an overview:

Concrete Block Making.

I purchased a block-making machine and the boys have already made 800 six-inch wide cement blocks, the first 3000 blocks will be used for our new Warehouse and then they will start selling the rest.

Here is the business in simple terms. Blocks sell in this country for 5.50 rand each (0.83 cents U.S. each) our cost to make them is 3 rand (0.45 Cents U.S. each). We will sell our blocks for 4.95 rand each (0.75 each) A nice profit of 1.95 Rand (0.30 U.S.) each We are currently making 150 blocks a day but as soon as we get a cement mixer ($2000 U.S.) we can go up to 800 blocks a day ($240 U.S. a day:):):) Huge money in a country like Swaziland. The only reason the people themselves can’t start businesses like this on their own, is they don’t have the start up capital, just like the ladies with the goats.

Saw Mills:

The country has lots of pine forests and gum trees, we have 2 portable band mills at home in my shop and I will ship them over next month. We will set one up permanently on the land and the other will be pulled around the country cutting timber for rural villages so they can build schools or what ever they need. The second one which is fully portable, will work on a basis were we take just enough of the boards we cut to take care of costs about 20%, the rest is for the village.

The first one will be able to cut about 600 lineal meters of boards a day (1800 board feet) About 20% is cost, so we should see about 3000 rand or (400 U.S) a day in profits. This will be up and running by the first of April.

Wood Working

In Feb we will start building a wood working shop, this is were we will teach young boys and girls from the orphan center next door how to make furniture and stuff to sell. We will use some of our own wood cut by the sawmills. Not sure what kind of value added profits will come out of this one yet, but I am sure it will be good.

Mechanical shop

One of the guys is a good mechanic and wants to start a shop to be able to take on jobs so he can teach the young orphan boys how to be mechanics so they can go out on their own and make a living some day. Girls too:) To start this business, I am going to buy about $2,000 U.S. worth of tools at home and ship them over in the next container. I’m a heavy-duty mechanic, so I know exactly what to buy. I was pricing tools here and it costs 5 to 6 times more then back home. To find someone here who has even a screwdriver in there home is rare, because of the costs, so this one I know will really be good :)

Equipment Rentals.

In one of my recent conversations with Jackie, I asked here to look up when the next Ritchie Bro auction was in either B.C. or Alberta, she did and it happened to be the very next day. So I called the auction and asked if they had any small generators and water pumps and sure enough they had lots. I set up proxy bids because I could not be there in person and 2 days later they called me and I had won all my bids. I ended up purchasing three diesels, 3-inch water pumps, three Gas, 3-inch water pumps Thirteen small portable generators, one portable 250-amp welder-generator and a Honda pressure washer. 40 chain saws and 40 gas powered weed eaters for grass cutting.

We are going to run an equipment rental business, we have calculated that if we only rent out 4 of any of these items a day we will see about $600 rand profit ($100 U.S)

We are also putting in bids or tenders to the government for easement clearing along the roads of Swaziland. When we win a contract we are going to employ the local young men in that area to use our gas powered weed eaters and a few chain saws to do the clearing. This will give local employment and we should see a healthy profit too.

I had to higher a government machine to clear and level our new land last week. It cost 350 rand an hour ($60 U.S.) I wanted to rent a cheaper smaller one but no one has anything like that here. I have a small Sumitomo excavator and a small Mitsubishi bulldozer at home that I am done using on our land. They are small enough to put inside a container so I am going to ship them over next month. Then we can rent them out, with our own operator who I will train. I can see a huge opportunity for this business; we calculate that each machine will easily rent out for about 175 rand an hour ($27 U.S.) for a combined total of 2800 rand a day (425 U.S.) After fuel, repairs and maintenance we should see about 2000 rand a day profit (300 U.S.)

Water Wells

My Lawyer back home says he has a client that is in the drilling business and he is going to see if we can get a drilling rig from him. If we do, we will ship it over to begin drilling water wells. We will run this business from the profits of the other businesses, this way we can drill the wells for free.

My dream is to get all these businesses running at a profit as soon as possible so the charity can then use the profits to help fund micro projects that directly help orphans. I estimate everything I’m trying to do here is going to cost us about 465,000 rand (75,000 U.S).

I know we have taken on a huge commitment in time and money and we’re happy to do it because I know im my heart it's the right thing to do. If any of you, want to be a part of these projects, just let us know as we could sure use the help this time.

Thanks

Ray