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Freight

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Project:

Buy two freight vehicles and with the proceeds earned from running freight, support the rehab ministry in Rzhyshchiv

What we are asking for:

We are seeking US$28,000 for two vehicles, (a van and a small truck), and start-up costs

What we are offering:clip_image004

· The opportunity to invest in a financially-needy ministry that will grow, has been effective and with God’s blessing will continue to be exciting and kingdom building

· Quarterly updates about the business with an expectation of it being successful

· Regular updates about the lives of the men and women who have been changed by the power of the cross

Purposes:

1. We desperately need ongoing and regular sponsorship for the rehab ministry – the profits from this local enterprise would provide this sponsorship

2. We want to be able to provide stable work for the men who have gone through rehab that would enable us to continue to minister to them and for them to be in a healthy church

3. We want to have capital to start other small local businesses for the men and women who won’t work for this company but who have gone through rehab and will stay

We have started testing three of our men who have gone through rehab and who have licenses to drive larger freight vans with a business in a nearby town. The fact that four of our men happen to be drivers, (two of them are professional mechanics), seems to point in the direction of a freight business being God’s answer to many prayers.

It is expected that a bus can earn at least $50 per day profit if it just takes local, (minimum profit), routes. A small truck can earn about $100 per day profit. It is definitely conceivable that we could earn US$10,000 per year – more than enough to support a rehab centre. (More on earnings below)

Details:

Drivers

We have four drivers right now who have gone through rehab and are standing firm in their faith. Three of them are experienced. (They are excited at being a part of this project that won’t be making a businessman rich but will be supporting a ministry!) Over the years, we will have more with driving experience that will finish rehab, (as well as others who learn in the local driving school). We actually expect that we will have an overabundance of drivers.

A soul-centered priority

o Making money will not be a priority higher than taking care of our men.

o For overnight trips during the first year following rehab, we will have two drivers in each vehicle receiving slightly more than “half salaries”.

o We will insert GPS trackers in our vehicles that also have the ability to record conversations in the cab and track movements

o If we are not confident of the driver’s relationship with God, we simply won’t take him on or send him out.

o The men live together and have the accountability of regular fellowship in God’s Word. It will be a priority to have them home for Sundays.

Competition

o There is competition, but we have approached FOUR businesses needing freight moved and have had a terrific response from them. If we had just a small van, we would already be able to make at least US$200 a week profit based on the promises we’ve received about European trips from Christian businessmen in Kiev. We are confident that our problem won’t be that the vehicles stand around for lack of work.

Contracts:

We’ve been offered contracts by a few different people/businesses, (mostly Christian businessmen), and this seems to be the most secure way of running the business. We just got off a skype call with a brother who has been making over $1200 a week with his van and wants us to join him. We have lined up another van owner to take this contract which will partly use our drivers and give us a percentage of the profit as well as pay our drivers a salary.

Management:

Pavel Grishko, who is the director of the rehab ministry, is a former businessman. He is a gifted administrator and manager of men and has worked in the world of freight before. He doesn’t believe God wants him to work full-time and long-term in this business due to his calling to minister to men’s souls in rehab. But he recognizes he has unique skills that can be used to set up this business and get it operational during the first year. So for the next year, he is willing to divide his time somewhat between the two tasks.

Daniel Gollan, will work with Pavel in making decisions and will have the “power of veto” on any major decision.

Costs:

Costs of registering a business: $500.

Cost of setting up a garage, (tools and walls and a ceiling), at the rehab centre: $2500

Sample prices of some vehicles :

1. 2008 VW Crafter US$10,000 (3.5 Tonnes)

2. 2007 Merc Sprinter US$10,000 (3.5 Tonnes)

3. 2004 Man L 2000 US$14,100 (6 Tonnes)

4. 2005 Renault Premium US$9500 (10 Tonnes)

Ongoing costs:

  • Fuel US$1 per liter (approx fuel economy 10l/100km for vans – 16l/100km for trucks)
  • Taxes: Approx U$1 per day flat rate + 10% on all proceeds
  • Comprehensive Insurance: 5% of amount insured for (approx. $500 a year)
  • Repairs: Minimum 5% of the profits go towards repairs/tools/oil/etc. (US$4 per day per van)
  • Salary #1: US$20 per day for an average driver (based on a percentage of earnings)
  • Salary #2: US$20 per day for the administrator (who will look after the bureaucratical side of things – documents, taxes, books, etc.)

Earnings Examples:

    • Kiev to Kremenchuk (240km) pays $200
    • If freight can be found for a return trip… then the profit is nearly doubled.
    • So on a good day, it’s definitely feasible for us to bring in $100 profit per van, but at the very least would bring in $200 per week.
    • A pessimistic estimate of profit if a European route is undertaken is $200 for three to four days. (We were just offered a contract that would bring in $600 on a bad month and over $1200 on a good month. Some of our Christian friends in Kiev who have freight vehicles say that they expect $400 clear profit on European trips.)

If we can keep that up for 12 months, there is every expectation that we would recover the investment within a year and be able to self-sponsor the centres we run and save towards more vehicles in order to serve more people and build the kingdom of God through discipling during drug rehabilitation.

We should spend at least 40 weeks on the road out of 52 clip_image006clip_image010clip_image008

If $250 clear profit per week x 40   then $10,000 per year.

Thus far, approximately US$5000 has been given towards the project.

If you would like to be a part of this, please contact me at danieljgollan@gmail.com and we can talk about the best way to get a donation to us. We’ve been praying and thinking about this for over three months now and feel as if it is time to let people know of the need. It’s pretty desperate.

May God be glorified!

Daniel