Christian Enablers International represents a service type of business. Therefore, it requires little front-end capital investment. The production of a product would likely require significantly more front-end capital investment than a service business.
The initial planning for Christian Enablers focuses on a single sample mission trip, whose future year replications form the basis for anticipated future profitability. Mission trip fees will constitute the single revenue source coming from both Enabler participants and the mission team leader. The per-person fee will be re-set each year, based upon past experience, and will attempt to adequately cover variable trip costs, fixed costs expected to be incurred continually, and a reasonable profit.
A high risk business such as this one would generally seek to return a 20% to 25% return on invested equity, in order to provide a margin of safety for the investor and to provide an appropriate reward for risk of loss. Christian Enablers will initially attempt to plan for a “reasonable” profit in order to account for risk of wrong assumptions and calculations (i.e. a cushion). Projections will assume participant volume of 13 travelers (12 Enablers plus a mission team leader). Christian Enablers anticipates that future trip projections will result in greater confidence in projected numbers and reduced inefficiencies. Mistakes and inefficiencies will accompany first year operations, which should not be borne by the Enablers who commit their time and effort to this adventure. Initially, Christian Enablers will simply seek to make a minimal profit with the hopes of more certain future profits that accompany increased efficiency and economies of scale.