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Business start-up

1

Kiwanjani Eco Lodge, Tsavo Kenya

To create an elegant wilderness experience that builds a stronger Africa

Kasigau Wildlife Limited, describes a business model that brings together a tour operator, Finch Travels Limited (FTL) and the 2500 members of the Taita Community living in the Kasigau area of Kenya’s Taita Taveta District.

FTL plans to build a 24 bed Eco-camp in the 52000 acre ranch. Set to begin full operations in June 2009, KWL will provide an excellent wilderness experience to middle- and high-income clients in the greater Tsavo area.

Facts

Legal status business
Formally registered
Year of establishment

2008

Sales (US$)
Two years ago: 0
Last year: 0
This year (forecast): 175,610
Year 2 (forecast): 250,076
Year 3 (forecast): 338,025
Net profit after tax (US$)
Two years ago: 0
Last year: 0
This year (forecast): -41025
Year 2 (forecast): 46,789
Year 3 (forecast): 84,810
Total number of Employees
Two years ago:
Last year: 2
This year (forecast): 27
Year 2 (forecast): 27
Year 3 (forecast): 34

Finance needed

Finance needed for fixed assets (buying of machines, buildings, ...) 80,000
Finance needed for working capital (salaries, stock, rental, leasing, transport, ...) 80,000
Total finance needed (US$) 160,000

How do you expect this to be financed? Please note: the total amount mentioned here should be equal to the total finance needed at the previous question.

Own Contribution in cash 66,667
Loans (debt) 80,000
Share capital that you seek from investors (equity) 80,000
Other sources 333,333
Total finance needed (US$) 560,000

The Business

What is your product/service?

In concert with its physical design, Kiwanjani will embody the attributes most likely to appeal to the middle-high-income clientele targeted:

Exclusivity— defined size (12 beds), limiting occupancy to a maximum of 18.

Elegance—Evoking the ancient African safari tradition of style, finest meals and unrivaled personalized attention

Unlimited Adventure— day/night game drives, guided walks, mountain climbing (Mt Kasigau), horseback riding.

What customer need/problem do your products/services satisfy?

We target clients interested in exclusive wilderness experience blended with travel philanthropy. Besides enjoying wonderful stay, thrilling wildlife and culture, they want to see how their stay helps.

How will you make the product/service?

Our success resides in our focus, integrated 3Cs concept, superior products, and experience in the safari market. We intend to adhere to the strict ecotourism guidelines during planning, construction and even use of energy and waste management. Our staff are key drivers to this goal so we will continously train them and even rely on client feedback and peer review by participating in accreditation schemes such as ecorating scheme in Kenya.

Explain how you will sell your product/service (marketing strategy) and how you will reach your customers (distribution strategy)?

K.E will employ a marketing strategy that reflects its goal for superior service and a fair partnership with the community. KE will benefit from the already existing marketing vehicle set up by FTL and its affiliates-including a joint marketing office with Integra in Europe.

An opportunity for KE’s success currently exists due to fewer elegant properties in the area coupled with increased demand and growth in the global travel industry.

To whom are you selling, what is your market?

Our clients are a wonderful mix of ethical tourists who are conscious about conservation and community development and high spenders with median household incomes above U.S. $150,000 who are interested in an exclusive wilderness experience blended with travel philanthropy.

Describe your competitors?

KWL’s competitors include Lion Rock Lodge, Voi Safari Lodge, and Kilaguni Serena Lodge, none of which offers exclusivity, elegance, and extra adventure (e.g., night game drives, game walks, horseback riding) to the middle- and high-income clients that we plan to target. However, their sizes, distance and location in the national park obviously sacrifices exclusivity and number of visitor activities they can offer.

What makes your business different/better than your competitors (competitive advantage)?

We guarantee an exclusive, superior and all inclusive service to all our guests. Besides, our strong value system (Conservation, Community, Enterprise) is a desirable identity among our target clients.

What makes your business, your product or service innovative?

The ingenious 3 C's concept (Conservation, Community Development and Competitive Returns) crafted jointly with the Kasigau community defines our business philosophy.

Our construction and design of the cottages is ingenious. We have used proper eco techinques for our construction and waste management that is efficient and cost effective. Besides we generate our own solar energy.

How will you ensure the growth of your business?

With its experience, reputation, competent management, and aggressive marketing through its Marketing affiliates, KE is poised to take advantage of the regional growth in tourism to diversify its investments locally in Kasigau Area and beyond.

We will continue to seek strategic partners and investors to provide additional financing and capacity for our business expansion and overseas marketing efforts.

The Entrepreneur & Management

Describe the entrepreneur & management

Frank brings in invaluable energy, passion, conservation and entrepreneurship skills thats essential in running KWL. Supporting his efforts will be, Boniface Nganga, also a Bsc. Wildlife Mngt graduate, Jim Kairu, a seasoned natural resource management expert, and Allan Bussard, managing director of The Integra Venture, a distinguished businessman, and an experienced project advisor.

What specifically makes you and (if relevant) your management team most qualified to build this business?

KE's team is well respected in their field for their vision and integrity, have demonstrated their commitment to sharing with their clients the exclusive wildlife areas by combining adventure and superior service. The 4 year relationship with the community and the ability to secure a 250,000 Euro grant from Slovak aid is testament to the teams ability. Their range of experience and diverse expertise provides a great and invaluable mix.

How much time do/will you expect to spend per week in the business?

I spend between 50 % -80% of my working week in KE. I expect to spend longer hours until construction is completed and a camp manager is recruited, there after I expect it to level to 50% time.

Development

How does your business improve the local living standards (social and environmental)?

The project is expected to significantly improve the income levels within the Kasigau Community estimated to $ 30,000-70,000 per year paid as dividends to land owners from land rent, and bed-night fees.

KE expects to directly employ 23 permanent jobs and about 20 casual annually bringing in close to 100,000 on salaries p.a. Wildlife populations are expected to double by year 3 and forest cover improved.

1 comment

hi

hello dear friend,
I hope that every things is ok with you as is my pleasure to contact you after viewing your contact at (www.bidnetwork.org) which really interest me in having communication with you if you will have the desire with me so that we can get to know each other better,
my email is (btessy5@hotmail.com)
yours friend,
Tessy.

23 Aug 11, 00:01 tessy ndadaye, 23 Aug 11, 00:01