Springs Valley investment opportunity

11

Jan

Springs Valley is an events venue in Mutanga Nord, Gihosha, Burundi started in Sep 2011 with a $150k investment. The center has 2 halls, board room and an office block and hosts events such as weddings, funerals, conferences and more. Revenue comes from rental of halls and rooms, drinks sales and training delivery.

Simeon Havyarimana and Eodie Nindamutsa already got the center up and running, earning $9k profit to date. The center has created 4 full time jobs and the center also employs a number of part time staff during events.

The center is now self-sustaining and Simeon is seeking investment to scale up into Phase 2 providing 25 more jobs. This will involve building a 3 storey building opposite the existing halls to house a restaurant, mini-supermarket, hairdressers and additional training facilities. Estimated cost is $560k with building work to be completed in 18 months.

Please see Simeon’s full summary of the business and proposed investment’s use below. We also have a more detailed budget and financial projections from Simeon, available below:

Springs Valley budget and sustainability plan

83.0 KiB
Details…

If you are interested in knowing more or being introduced to Simeon, or even visiting the project in Burundi, please contact us on [email protected]


Here’s Simeon’s summary:

Who We Are

Springs Valley is a family business center located in Mutanga Nord at Nyanzuki avenue in Gihosha district which opened July 2012. Gihosha district has about 5,000 middle class households. Springs Valley center was founded by Simeon Havyarimana and Eodie Nindamutsa, following years of saving, researching and planning for a diverse business. With the experience acquired over the years travelling and working for philanthropic organizations to empower the poor, the Havyarimana family realized how much they could do together and impact Bujumbura with a sustainable business. In September 2011, the family undertook the construction of the center which took 9 months to complete. Total investment was about $150,000. The center comprises two reception halls and an office block. The two halls can accommodate 1,000 people at the same time. The office block has an executive board room that can host 30 people.

The center hosts events such as weddings, dowry ceremonies, funeral receptions, dinners and conferences. The target market are people getting married, those who have lost their dear ones, people who want to organize conferences or dinners and students who hold receptions after defending their thesis.

Services include: rental of the halls and the conference room, charging for the drinks, décor and training. The Hadassa Women Development Initiatives uses it as a training facility to impact women and youth in Bujumbura. Springs Valley is surrounded by middle class residential houses. The selling point of the center is the capacity to hosts about 1000 people at once, its large parking lot that can receive 80 cars, its location near the Catholic Cathedral and near the bus station all these makes it even more accessible and visited by hundreds daily.

Phase I of this project has proven itself to be self sustainable. The Center is already attracting thousands of people who are not from the proximity. Barely when section A and B were completed it in June 2012, the center became functional in July 2012. From July to date, project has generated $9,000 which equals to $1500 net monthly profit. The center has created jobs for four fulltime people: the executive director, the manager, the cleaner and the watchman. These four have benefited special on job trainings. Besides this, the center uses more than 20 part time and volunteers during the event period.

As the program has become sustainable, the management feels that it is time to upgrade the center to phase II which will enable us to offer additional service needed in the community around it.

Phase 2

Gihosha is a city of more than 5000 households. Springs Valley Center is located near one of the biggest Catholic Church in the city of Bujumbura. Some believes it’s the biggest in the country. It is also near a bus station and taxi stations. It is a cross path of thousands of people who pass by its gates daily. The town is one of the prestigious areas in the capital. There are a lot of youth, children and adults in the area. What is even more striking is that there is lack of services needed by these multitudes and families.

This project consists of building a three store building opposite the halls. The building will be used to expand the business that will include a restaurant, a mini supermarket, an executive barber shop and a hair salon and additional training facilities to promote entrepreneurship skills.

The district is booming with many executive staff moving to the area. The American embassy has relocated and is now at a bout 1Km from the center. With the expansion of the center into a venue which will offer more services, the middle class people who reside in the neighbourhood will not need to go down town for treating themselves with decent services they deserve in a clean environment such as Springs Valley Center. They will get fresh bread and other groceries right at the center. They will have an executive place to get different services they normally get in the city center. They will prepare themselves for the weekend as they visit the barbershop and the hair salon. The new services will serve an estimate of 1000 people of Gihosha district. The estimate total project cost on the Phase 2 will be $560,000 to be completed in 18 months. With this phase, Springs Valley will provide at least 25 more jobs.

Competition Analysis

There are only 3 small restaurants in the neighbourhood that are substandard. Gihosha north does not have any well furnished & filled supermarket. The nearest clean supermarkets are down near the military hospital and the gas station. Yet Mont Sion church is attended by 2000 people every Sunday. The place is over packed on weekends. The Mutanga Nord as a whole does not have a high class barbershop or hair salon. Many, especially high executive ladies who need clean and private salons have to go to town to have their hair done.

Our immediate neighbours from the entire Gihosha district are in great need of a good and decent restaurant with affordable prices, a mini super market, a barber and a hair salon. We are confident that Phase II, while it will provide needed services as it improves the suburbs of Gihosha lifestyle, it will increase revenues by at least 60%.

Much of the return on investment will help improve the services provided, but also contribute a bit towards its development in view of the next phase.

Most people hosting events request catering services and cocktails during and after the event. Fulfilling this dream on phase 2 will bring an additional income estimated at $1,500 net monthly income conservatively in the first year.

Projected Benefits

  • As entrepreneur ourselves who’ve been successful in small and medium businesses in the continent, what we see as needed to launch this business is only capital for the second phase. The center has the capability to transform consumer markets at the base of the pyramid. As the old saying goes, “two are better than one,” therefore partnership and networking with TBN will be Key to our success. Once this business develops to its fullest potential, it will improve the transformation of the district of Gihosha.
  • Youth will find employment and also they will grow in knowledge preventing them from delinquency.
  • Families will find places for shopping without having to go far into town for basic household items.
  • Gihosha inhabitants will have access to a place of relaxation around good and quality meals and snack they deserve in a very clean, decent restaurant and peaceful environment.

Capability

Total: USD $ 560,000

Based from my past experience, my wife and I believe in starting small and growing bigger.

  1. Mr. Simeon Havyarimana holds a Masters’ degree from Wheaton College in USA. He came back to serve his country and the entire continent. He has held many positions of leadership since 1982 when he returned from the USA. He is a trainer on small businesses and he has been involved in community work, assessing different projects on the continent of Africa. During the 1993 Burundian civil crisis, Simeon Havyarimana was the first to launch reconciliation programs which, funded by the Dutch government, helped displaced people and refugees through sustainable support programs. Instead of relying on relief programs, refugees and vulnerable members of the public were assisted and were able to start a variety of small businesses, most of which are sustainable up to date.In Congo Brazzaville, while working for Hope International, Simeon Havyarimana launched a Micro finance program with at least 3,000 clients, which is now one of the leading micro finance institutions in the country.
  2. Eodie Nindamutsa holds a Masters’ degree in Business Administration from the University of Nairobi in Kenya. She has equally served the continent in different capacity of leadership. She is the founder of Hadassa Women Development Initiatives (HAWODI), a local Non Profit organization that exists to empower poor women to stand on their feet in Burundi. Eodie is the General Manager of Springs Valley. She is assisted by the Marketing officer.Both Eodie and her husband Simeon are known entrepreneurs themselves with a backing experience in different African countries. They are enthusiastic to see their city transformed through entrepreneurial activities that will benefit different families and the community.

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