Q3.2024.R.
Third Quarter (Jul, Aug, Sept) 2024 Report
Friday, October 11th, 2024
The Great Elephant Migration in New York City's Meatpacking District, as seen by Eric during his time there for work.
Executive Summary
Performance Overview
Structurally, Turabizo Studios has been organized into six distinct areas: Film, Youth Mentorship, Food, Fitness, Art, and Lodging. The Youth Mentorship studio has been the most active, followed by Food and Lodging. Fitness and Art have seen minimal activity. Progress on the Film project has been intentionally slow, as the focus remains on stabilizing the core aspects of the business before ramping up this initiative.
Key Achievements
All of our primary students successfully advanced to the next grade, and our secondary student officially graduated and has completed his national exams with good marks.
We received some excellent feedback from select guests regarding our food and lodging services.
On the organizational front, we launched both a new website and an affiliate program. The website has been very helpful in showcasing our work, while the affiliate program still requires some refinement to reach its full potential.
Challenges
We are currently facing two major challenges.
First, Eric’s absence. While his return to the U.S. was necessary, it has limited his ability to support daily operations. On the positive side, certain progress has been made that was difficult to achieve while he was in Rwanda. However, other areas have slowed or stalled due to his absence.
Second, financial hurdles. Although we've launched several revenue-generating projects with the goal of building a sustainable, self-sufficient business, we have yet to reach the point where revenue fully covers expenses. This has created a sense of uncertainty and instability, which has affected everyone.
Significant Developments
As detailed below in more detail, we are currently restructuring the business to better align with our current position, capacity, and the evolving needs of our team, youth, and community.
While abroad, Eric has been able to secure additional work, allowing him to make larger financial contributions. Throughout the last quarter, this has enabled him to provide greater support to the business in ways that were not possible during his time in Rwanda.
Income
Total Revenue: 4,804,287 RWF / $3,554.78
Total Costs: 4,399,165 RWF / $3,255.02
Total Profit: 405,122 RWF / $299.76
Cash Flow / Costs
Team: 1,292,500 RWF / $962.63
Food & Drink: 1,045,350 RWF / $784.71
Rent & Utilities: 979,200 RWF / $727.05
Tools: 404,315 RWF / $305.18
Animals: 265,780 RWF / $199.73
Supplies: 151,700 RWF / $114.50
Students: 126,900 RWF / $94.50
School: 78,700 RWF / $58.66
Transport: 42,400 RWF / $32.09
Furnishings: 10,600 RWF / $7.86
Affiliate Marketing: 720 RWF / $0.92
Revenue
Donations: 3,859,477 RWF / $2,855.70
KuZiko: 615,300 RWF / $455.27
Murugo: 225,510 RWF / $166.86
Other Revenue (sale of chickens): 88,000 RWF / $65.11
Komera: 16,000 RWF / $11.84
Guest Count
KuZiko: 227
Murugo: 9
General Company: 8
Komera: 1
Total Guests: 245
Murugo (lodging) Guest Origin Countries
Canada
Germany
Rwanda
USA
Top KuZiko Orders
152 Chapati
88 Milk Tea
55 Coffee
22 Double Korean Cheeseburger
21 Japanese Yakisoba
15 Sundown
14 PBG (pineapple-beet-ginger juice)
11 Whiskey Sour
Expenses and Cost Management
Our top expense categories remain Team and Food & Drink, and we expect these to grow.
Currently, we are falling short of our goals for providing both adequate monthly salaries and meals for the team and the kids. In the past, we offered full-time work and provided breakfast, lunch, and dinner Monday through Friday. However, today, most of the team is part-time, and our meal offerings have been scaled back—breakfast is now just a snack, lunch is provided one day per week, and dinner is available daily for only one student and one team member.
This quarter, we also saw higher expenses for tools as we registered our own website domain and paid for a one-year subscription upfront, which will save us considerable funds over the year.
We aim to reduce spending on animals and transportation. We’ve sold all of our chickens because, despite the eggs, the cost of feeding, cleaning, and maintaining them far outweighed the benefits. We are also working to optimize our transportation expenses for food and supplies from town.
We’re planning to rework our affiliate program and are optimistic that this could become a significant expense in the future. Upfront, affiliate costs are minimal. High affiliate marketing costs are an indication of higher revenue generation.
Our goal is to allocate significantly more funds toward the students. Beyond uniforms, sandals, and school supplies, we want to return to offering two full, balanced meals a day (before and after school) and to provide more activities, field trips, and paid group classes in areas like dance and art.
We are also eager to enhance our home environment, improving furniture quality and comfort—adding better seating, rugs, and functional furniture to make the house a more inviting and comfortable space for guests.
Operational Highlights
Our team of mentors successfully supported the kids through both the spring and summer terms, ensuring that all of them completed their studies and advanced to the next grade level.
We continue to enjoy a strong partnership with F3, a weekly men’s workout group. As part of our arrangement, we offer them a special deal on breakfast, including chapati and their choice of tea, coffee, or juice. Every Thursday morning after their workout, they gather at Turabizo at 6:30 AM to relax and chat on our back porch. Their consistency has been remarkable since we established this agreement, and we look forward to their visit each week.
Launching our affiliate program was an exciting milestone. While it still needs refinement to reach its full potential, we remain optimistic. With the right adjustments and clearer structure, we believe it will become a powerful part of our operations.
Our beloved Chef Celestin has relocated to Kigali, and we have yet to find a replacement. For now, KuZiko operations have been relatively quiet, and we are not actively promoting it. Chef Martin is fully capable of managing the food service at our current pace. As we adapt the kitchen program, we will either look to hire a new chef or explore the possibility of reconnecting with Celestin to see if he is interested and available to return.
Market and Competitive Analysis
On one hand, we have received high praise from guests.
Our burger has been called the “best burger in Rwanda.” A group of guests from Kigali even expressed their wish for us to open a location in their city so they could enjoy it more often. Another international visitor referred to our Japanese Yakisoba as the “best meal in Rwanda.”
We’ve had a repeat lodging guest from Kigali. And our international lodging guests shared a glowing review of the team and their time at the house.
However, we face some challenges:
Our location is a bit far from town.
We operate out of a house rather than a traditional restaurant or hotel.
We offer a range of services—fitness, food, art, etc—that aren’t commonly associated with one another.
Currently, due to our capacity, we only provide food by pre-order, which is not a typical or familiar practice in Rwanda.
We have unique hours, as we open early to support the youth mentorship program and stay open late for the lounge. Then we close intermittently to manage household tasks and dog care.
Our variety of offerings gives us a unique atmosphere, but it also complicates attracting a clear target audience. As a result, we have been overextended, and no single area has received the dedicated focus it needs to truly thrive.
Given our setup in a residential house, we have not developed external signage or lighting, which can deter potential visitors who may not realize we are open to the public.
While we cherish our four dogs, their presence has added complexity to our operations, limiting our ability to extend hours and freely invite guests inside.
Our approach differs from similar establishments in the region. Unlike other local restaurants, bars, guest houses, art galleries, and gyms, we encounter a unique set of hurdles. While we have launched promising programs and shown potential for success, we must learn to navigate these unconventional challenges and adapt as we refine our business model.
Key Performance Indicators (KPIs)
In July, we set ambitious goals for our current revenue streams—KuZiko, Murugo, and Komera. While we have demonstrated that these goals are attainable, we fell significantly short of achieving them and even moved further away from our targets.
Operationally, our team is ready and capable, but we lack the necessary traffic. However, instead of trying to force a solution that doesn't fit, it’s important to take the time to reflect on what went wrong and whether our current structure is appropriate. We are considering how we can adapt our entire framework to facilitate smoother and more sustainable growth.
Rather than revisiting past goals, it's time to set new ones. Now is a good time to reframe our mindset and restructure the business—letting go of some ideas to make space for new ones.
Risks and Challenges
The biggest risk and most unsettling challenge has been the company's reliance on donations, particularly from Eric. This quarter highlighted the difficulties that arise when he struggles to meet even the most basic operating expenses, creating discomfort for everyone involved.
Outlook and Guidance
Eric is currently in the process of securing new work, which will help support our revenue. We anticipate an increase in funding, primarily through donations, particularly from him.
He is also collaborating with Eliab to restructure our business model. As we undertake this process, we will begin more deliberate outreach for funding—through both donations and grants—and launch campaigns to promote Rwanda and our project, leading to more direct sales.
We envision reduced stress, greater peace of mind, more stable daily operations, and the opportunity for organic growth.
Our ultimate vision is achievable, and we aim to enjoy each step of the journey, allowing the project to develop and mature naturally.
Health Statement
We have recently become aware of the serious Marburg virus outbreak impacting Rwanda. Fortunately, the most recent news reports indicate that the country is effectively containing the situation, with cases on the decline. We have confidence in the Rwandan government’s ability to manage this outbreak and to provide the public with timely updates. If and when necessary, we will follow the provided guidance and adapt our operations to help minimize the transmission of the virus, to protect our team, kids, and community.
Statement from Eliab Nduwayo, Chief Operating Officer & Guruka Youth Mentorship Manager
These last three months were not easy at the start, as Eric, the founder and lead manager of Turabizo, had left for the USA. We struggled to manage everything here by ourselves, but we persevered and things improved as he kept checking on us, following up on everything at the house, and reading the reports. I can confidently say that we are now in a good place and Turabizo remains a special place for us, our kids, and the community around us.
We also faced a serious financial crisis in the past three months, as we mainly relied on the revenue from our lounge, Murugo, and Eric’s donations, which were insufficient to cover our expenses. This financial strain had a negative impact on everything, and despite our best efforts to generate more income, it was a challenging time.
Our kids had a joyful school holiday, and they all passed their exams and were promoted to the next grade. We shared some fun moments with them through dancing sessions, movie nights, and football games at the house. We wanted to do more activities with them, but financial constraints limited us. Now that they are back in school, they are excelling academically and showing a strong commitment to their studies.
Eric continued to support Turabizo financially, and we are grateful for his assistance during our difficult times. Despite facing some challenges, we are still standing strong and thriving. The kids are doing well, although one of them is currently not attending school due to unresolved issues that we are actively working on. The Turabizo staff is in good spirits and everyone continues to come to work, although one of our staff members relocated to Kigali. Even the dogs, who miss Eric dearly, are doing well.
Statement from Eric Buron, Founder
Reflection on Results
First, I want to acknowledge the challenges of the last quarter. Eliab has been very diplomatic in his statement, and while the team has kept me informed during my time in the US, I understand that not everything has been fully disclosed. Still, I don’t need all the details to know that times have been tough and it is deeply painful to know that the team has been struggling. I may never fully grasp the difficulties they faced or how they managed to persevere.
There are two main challenges for me. First, Turabizo is absolutely a source of inspiration, motivation, and purpose in my life, providing mental, emotional, and spiritual fulfillment. However, it offers no financial support. My previous work situation made it impossible to manage Turabizo full-time while also working enough to earn enough to cover its expenses. I’ve often had to rely on the generosity of family and friends to keep us afloat, and have compromised my own health and well-being in the process.
Second, my opportunities for earning new income in Rwanda are limited, which is why I had to seize the time-sensitive work opportunity in the US. This decision has allowed me to transfer more substantial funds to the team over the past several months and reduce our reliance on others. While there have still been rough patches, I’ve been in a better position to support the team financially from abroad.
Yet, we had only just launched our revenue-generating projects when I left Rwanda. As Eliab and I have noted, I essentially left the team to steer a small boat in the middle of the ocean. If we had consistent traffic, I have complete faith in their ability to manage the day-to-day, but this situation has made it clear that the company cannot yet grow or sustain itself without my presence. It is my goal to build Turabizo into a business that can run smoothly whether I am there or not—a self-sustaining system. Reaching this point will require careful reflection, decision-making, and implementation, alongside managing a new work situation.
It’s distressing to me not being able to fully support everyone as I would like. I care deeply about the team and the kids, knowing their family situations and the responsibilities they carry. The thought of failure, closure, or bringing this journey to an end is painful and would negatively impact so many lives—a ripple effect that grieves me to even imagine. While I understand there is a limit to what I can give, I remain committed to making this work.
I am beyond proud of the team’s resilience and perseverance through hardship. And I am beyond grateful for their loyalty and dedication. My goal remains to create a space where they can thrive—where they can support themselves and their families, explore their passions, and call Turabizo a second home for as long as they wish, even into retirement. They’ve shown they deserve this (though there has never been a need to prove it), and I am prepared to do whatever I can to turn this vision into reality.
In hindsight, it's undeniably disappointing that all of our preparation hasn't taken off as we’d hoped. But the deepest disappointment comes from feeling like I've let down some of the people I care about most—our team and the kids. Everyone is giving their best effort, and just as clams transform grit into pearls, I trust that this challenging period will ultimately serve as a powerful springboard, bringing us closer to fulfilling our true purpose within our community.
Turabizo’s Purpose and Restructuring Plan
From the outset, the mission of Turabizo has never been about making money. Our focus has always been on positively impacting people’s lives, and we are committed to playing the long game—because we deeply care about the quality of life for those we work with and serve.
That said, we recognize that to continue this mission, we must generate income. Our aim is to become self-sufficient and sustainable, reducing our reliance on donations. This dependency has caused destabilizing highs and lows. The challenge now is to find a way to sustain ourselves financially, so we can keep doing the work we find meaningful.
Reflecting on the last quarter—and the past year—has led me to the conclusion that it’s time to restructure the business.
New Work Situation and Financial Stability
I am currently on track to secure a new work opportunity in the U.S. that would allow me to work remotely. If successful, this will enable me to cover Turabizo’s baseline expenses, providing much-needed breathing room and alleviating some of the daily pressures we’ve been facing. With financial stability, we can shift our focus to growth and refinement.
Streamlining Our Studios
Currently, Turabizo is divided into six studios, but we will be streamlining our efforts into three main areas: youth mentorship, travel, and film.
Youth Mentorship: This has always been the heart of what we do. We’re putting immense effort, thought, and resources into it, and it’s time to center it as our core activity. When we update the website, we will clarify the structure of this program and highlight the impact we’re having in this area.
Travel: Currently, we’ve had a unique target audience, trying to appeal to both expats and locals with a variety of products and services, but this hasn’t felt quite right and is a difficult landing to stick. Eliab and I are now in conversation about a collaboration between Turabizo and his company, Better Land Rwanda Tours. Together, we’ll promote Rwanda to an international audience. The other studios—lodging, food, fitness, and art—will now service our travel focus. Revenue generated from travel will provide us with the flexibility to grow and expand beyond our baseline operations.
Film: This passion project was the original spark that kept me rooted in Rwanda. Though there's no rush to complete it, the film holds the potential to broaden our impact both in Rwanda and internationally. However, my main focus remains on stabilizing Turabizo. Once the foundation is secure, I'll be able to turn my attention back to the film project.
Next Steps and Vision
The immediate steps involve restructuring team schedules to reflect this new direction, updating the website, and working on practical projects to reinforce our foundation. I plan to return to Rwanda in early 2025, at which point we will also begin physically reorganizing our spaces to better serve our new objectives.
Our new clarity around priorities feels promising. Though we’ve faced hardships, it feels like we’re emerging from the woods onto higher ground, with the promise of a beautiful view. We are committed to doing what’s right for Turabizo, staying true to our core values, and cultivating our community.
I am profoundly grateful for the opportunity to live and work in Rwanda, for the chance to contribute to the lives of our team and the young people we serve. This journey may be long, but it’s one worth taking.
To those who have supported us—thank you for being part of our community. Your contributions and belief in us mean the world, and we are honored to have you on this journey with us.
From Turabizo, with Love:
Eric, Eliab, Virginie, Martin, Emmy, Pascasie, Moise, JC, Celestin, Junior
Dieudonné, Aimé, Moise, Olivier, Ali, Felix, Kenny, Honorine
Keza, Céline, Zuri, Miro,