Social investing as a burgeoning market can take investment dollars and generate a mutually beneficial outcome for all parties involved! Not everything is always as it seems, though. Markets are fluid, and throwing money at a country won’t make it prosperous. That is why we at Tricord Global are committed to finding sustainable economic solutions. This story of some good work in Uganda displays that commitment, hard work and a little re-evaluation here and there goes a long way.
Trash For Cash
One of Tricord’s social investments began with a little seed money, some business training and consulting, and a simple business idea for a program to mill corn and grain in Malawi. We first established that this program could be sustained after initial investments before providing the needed start-up capital. We also put into place a community development program which would be paid for and subsidized out of the business’ net profit.
Upon formulating a business plan, it was discovered cash flow could not be generated by a mill alone. However, it was also discovered that we could turn trash into cash by recycling paper goods and agricultural byproducts. This required only one-fourth the amount of start-up capital and immediately started the business and brought it to a positive cash flow. From the net profits of the firebrick business, we were able to finance an adult literacy program.
The “Trash for Cash” program was so successful, but another problem was created. The firebricks could only be pressed and dried during favorable weather. When rainy season came production could not keep up with demand. We had to build make-shift drying facilities with racks so that work could continue during the wet weather. Grinding and preparing the mulch and creating the volume needed became a laborious task but we already had a solution: the mill could grind the trash and mulch producing the volume needed!
Evaluation
Nothing is ever going to be perfect the first time you do it. That is why the act of evaluation and re-evaluation of any project, whether it’s a business venture or investment, is incredibly important. With some critical thinking, we were able to see that our initial business plan wasn’t generating enough cash flow. We added in some creativity and found other business ideas that would work.
Today, Tricord works with banks and credit unions to provide microfinance loans to entrepreneurs in developing countries. Our commitment to personalized business and financial advice, as well as accountability, is what has made our clients so successful. At the end of the day, all of this is about seeing our clients reach financial milestones they hadn’t before. That is why our business model works.
Investments Opening Soon!
I am pleased to announce that we will be opening up the opportunity to invest in Tricord Global one last time in 2017. If you would like to get involved in our work, email contact@tricordglobal.com
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