End of last year (second year on site) - fell behind on rent payments... had to close the school 2 weeks early. There is an outstanding balance (1.7M starting in september).
If we pay (800,000KS) we can use the facility (existing facility)
Agreement on how to settle remaining fee of (900,000)...
September 5 - School Starts (1.5 weeks out)
Monthly Rent - 150,000 KS...
Adjustments
Going forward - buld the school from the bottom up...
Starting playschool / kindergarten to grade 6 elementary school.
Start phasing off the high schoolers - not extendng expenses into high school.
School grow stage by stage...
Approximately 25 students... approx 4 new students want to join...
65,000 Fee per term per child x 3 terms = 195,000 KS
x 25 students
Total Revenue $4,875,000 KS
x 29 students
5,655,000 KS
Expense Side
Rent: 150,000 KS x 12 months = 1,800,000 KS
Teachers and Staff = 275,000 KS / month x 9 = 2,475,000
December Holiday
April Holiday
July and August Holiday
Food, Supplies, etc. = 70k to 120k / month - estimate 100k / month = 800,000 KS
Total = 5,075
Deficit at 25 students = 200,000 KS ~ $1,700 dollars
Surplus at 29 students = 580,000 KS ~ 4,833 dollars
Debt Repayment
At 29 students, with fiscal discipline, we should be able to repay 580k of 1.7M KS - which leaves us 1.12M KS short...
Extracurriculars
Football, dance, swimming - paid separately
Run at a reasonable profit that works for the parents...
Transportation
Look at as a separate business operation, with its own income and expenses...
Issue 1: Transporation to and from school - students and teachers
Issue 2: Transportaton to and from Pokot is exhorbitant... because of road, etc...
29 students... of which 24
7,800 / student / month
Look at it on a per van basis
Van - that can get around Nairobi, and get around Kenya to places like Pokot.
Revenue Stream 1: We can cover the base cost for the van by transporting full capacity of students to school each day
Revenue from Mt. Zion school(s)
Revenue from Other Schools
Revenue Stream 2: We can also use the van to handle outreach missions to surrounding villages, schools, etc.
Revenue from Mt. Zion churches
Revenue from Other churches
For example - 40 students...
Research
What does 1 4o to 50 seat bus cost, and what are its capabilities/ pros / cons...?
What does 2 20 seat vans/ busses cost, and what would capabilities, pros, cons be?
What does 3 or 4 14 seater
Hypothesis:
Sub divide Nairobi into 4 parts
Get 4 14 seater vans with removable seats so that they can haul people or supplies...
Make sure that at least one of teh 4 has 4WD...
Price of 33 seater 4.5 million
Price of a van - 1 million
Homework for estelle and Jacque
Figure out costs and finance for 4 vans
Figure out revenue per student per van
Figure our revenue / savings from trips to Pokot
If any of the 4 regions of Nairobi are not running at capacity (the vans are full every day) - figure out what other schools or churches or parents you could partners so that each van runs 100% full each day.
See if there is an affordable price, that creates a surplus / profit, that is enough to pay down the 1.7M in debt over the course of the school year
1.7M / 8 months
So - if you could run the transporation business at 220k / profit per month x 8 months = 1.76 M KS profit = debt repaid.
Is This Possible?
1M KS Van...
13.5% - that is terrible extortion...
Down Payment: 200k
Loan = 800k x 13.9% for 36 months = 27,303 / month...
Revenue
Seat 1 Driver
Seat 2 Minder
7,800 / month per student x 12 seats = 93,600 KS / month
Expenses
Loan 27,303
Driver (Or volunteer) - 18,000 KS
Minder - Teacher - salary paid elsewhere.
Fuel - 1 tank per week, 7,500 x 4 weeks = 30,000
If we are paying the driver monthly, what are they doing the rest of the day?
Total Expenses: 75 KS / Month
Profit per Van
Approx 20k x 4 vans = 80k KS / month
Savings from Trips to Pokot
Usually cost per van is 12k / day... 10 days there... 120,000...
What else can van do to earn revenue...
Cannot do any work other than school work
What can be done to increase the profitability...
Jacque - missions exclusive transport for network of churches...
Tour style vans are 14k / day... to 18k / day...
Pokot Prototype
The materials are available on the ground
Interlocking bricks, locally avaialable soil...
Inexpensive walls - only need cement.
130 bags of cement get 10 bricks, which is enough for 3 classrooms