The Homecare Board rewards all the people involved in setting up the software structure. We do not offer shares. Instead, we implement a business model where people involved do receive benefits that we manage via Pledge Certificates.
Pledge Certificates holders must supply the Homecare team a copy of their ID documents which is stored on our servers. (We also collect company documentation to support a Pledge Certificate that we issue to the supporting company.)
A Pledge Certificate holder will receive groceries sponsored out of the Tourism sector. It can be compared to having an investment when you receive groceries without paying for it. The Pledge Certificate is transferable to a spouse and will be managed until both are diseased.
Certificate holders will receive their benefits as long as they reside in South Africa. The Homecare Board can only fund the important projects we intend to support after we completed our liabilities towards Pledge Holders.
When we launch the software, low income people will immediately benefit with their 4% additional groceries. The 1% we keep for our projects will first be used to honour our Pledge Agreements with Pre-launch participants.
Benefit for Xone Security
The Homecare Board need a partnership where business owners feel that they are rewarded above expectation. Business owners should also know that the Homecare team will not implement any action plan that will harm the relationship between business owners and their staff.
We have been working for months on the Pre-launch structure, just to ensure that we understand all the risks, and that we know what to look out for, so that if and when we invite business owners, that there will be no risks involved.
We now take the next step, which is to arrange that business owners strategically positioned amongst different industries join this important project.
We manage the Homecare project in a responsible way. We do not waste money on unnecessary costs or even employ a large staff structure that will put us under unnecessary financial constraints.
We believe that strategic partnerships in 3 sectors, (Private security, construction and fuel) will help us in our important negotiations with Pieter Engelbrecht (Shoprite group)
Our Chairman's friend (Johann van Zyl) has business interests in two companies with whom we negotiate partnerships. One company is Total Petrol Port situated on the N1 Highway just north of Pretoria. It is a fuel company that has two stations next to the highway (N1 North and N1 South), and this particular site has always been the top petrol station within the Total Group.
The other company that Johann has business interests in is Lynx Real Estate https://lynx-re.co.za/.
Johann and his partner (Dirk Nel) is involved in a Construction company where they build shopping malls and numerous other buildings nationally.
Pieter and Johann van Zyl has their next meeting on Thursday morning (6 December 2018) in Somerset West. The Homecare Board is confident that negotiations with the two companies in the other two industries will be finalized by 17 December 2018.
Homecare server report
Managing Business risks
The Homecare team needs to manage our business risks, and we will not take the chance to employ our IT director full-time if we have to rely entirely on the 4 property principals.
After taking everything into consideration, we believe that it will be best for the business owners if we invite staff who has internet banking services and who have access to e-mails. These people will only be invited after directors and top management have tested the Pre-launch platform themselves. So the first step is only to work with top management for two to three weeks.
Directors / Top management
We ask management to register on our platform and purchase their own groceries via the Pre-launch structure. We rely on 5% commission received on grocery spending to help fund operational costs. Management can register for up to R8 000 on our platform.
We will provide a 100% Pledge Certificate. The Homecare team will in future provide management digital vouchers or load gift-cards with R8 000 per month, out of the 1% we earn when we support the staff in the tourism & hospitality industry.
We focus on Pick n Pay, Checkers, Shoprite & USave during the Pre-launch period. We group our combined buying power into these groups in order to receive as much discounts out of the sliding scales as possible (while we work with a small group of pledge holders).
The Pre-Launch software enables management to keep the Pledge Agreement in place if they want to buy groceries form the other companies (Spar & Woolworths). Management can then donate the 5% commission we could not earn.
Example Manager with R8 000 Pledge Certificate:
Manager order R3 000 vouchers/gift cards from Shoprite & Pick n Pay
Homecare receive 5% on the R3 000 = R150 for development costs.
Manager is R5 000 short on planning, and donate R250 during the month to recuperate enough points so that R8 000 Pledge Agreement is serviced. (We have people on board who only donate and do not purchase vouchers at the moment)
After we have launched, the manager can instruct us which amounts in vouchers he/she would like on a monthly basis from which companies (Including Spar and Woolworths)
We will offer management this huge percentage (100% Pledge Certificate) because we believe that management will be involved in helping us to invite staff to purchase groceries via the Pre-launch platform.
We need a commitment from management which we explain:
We ask management to register for any amount between R2 000 and R8 000. (The Homecare Board wants to reduce the shortfall pressure that is shared between the 4 property principals. This shortfall will rapidly decrease during January till March 2019 when the rest of the property network is invited. The Homecare team will during January, February & March expand the "Homecare Ambassadors" and will include additional estate agents whom are requested to purchase a minimum of R1 000 per month via the platform, which is really a reasonable request.)
We ask management to make a financial contribution over a 2 month period which will be handled as a short term loan to the value of the Pledge Certificate management will receive. If a director/manager registers for R2 000, we ask a short term loan payment of R1 000 and another R1 000 during the following month. (This will enable the Homecare team to reduce the financial pressure placed on the property principals).
These “Short-term loans” will be converted into vouchers that we will issue to the pledge holder over a 4-month period. The first voucher will be issued 2 months after we received the last loan payment.
The following example clarifies:
Director chooses R2 000 pledge agreement
Director pay R1 000 during first month into “Loan account”
Director pay R1 000 during second month into “Loan account”
During 1st Month, 2nd Month, 3rd Month and 4th Month, director order vouchers and donate shortfalls of 5% of pledge agreement to maintain Pledge Certificate value of R2 000.
During 5th Month, 6th Month, 7th Month and 8th Month, the Homecare team will issue a voucher to the value of (R2 000/4 = R500) for which the Director does not pay. This is how we will repay the short term loans.
Director/manager with R8 000 Pledge Agreement
It can actually be compared to having an investment of R1.848 million if we issue a Pledge Certificate of R8 000. (This is the capital required on a Fixed Deposit account earning 6.75% interest per annum, with a 30% Tax liability calculation)
It will take the Homecare team up to 8 months before we will be in a position where we can provide the vouchers to the value of R8 000 to a Pledge Holder. Pledge Holders with such high certificates will also have an additional advantage. These Pledge Holders will receive 50% of their certificates in cash on a monthly basis (There are people who prefer for example to buy meat from their local butchery instead of retail stores). We prefer to limit the amount of cash (the number of beneficiaries receiving EFT payments) we must pay out. We do not expect a large number of R8 000 Pledge Holders.
Our first task, if Xone security group accepts our offer, will be to list the company’s name on our database as a business partner.
Management can thereafter ask staff (after we have supported management for a week or two) to please visit the www.homecare.org.za website and read the Pre-Launch competition page. Staff can also read about the project on the Homecare Friends link. (We publish less detail for staff).
The password is: enjoylife.
Staff can then register themselves.
Management can also provide us a list of e-mail addresses and we can mail the staff a short explanation e-mail. This e-mail will also provide the password to the Homecare Friends link.
The company will receive 20% administration fee on the groceries people purchase who are registered beneath the Company’s name.
This could become a substantial amount if a large group of employees register.
We offer other people 25% Pledge Certificates. This will be the highest reward they can receive via grocery structures. The best discount we are aware of at the moment is the 15% discount that FNB clients with a substantial e-bucks profile earn from Checkers & Shoprite. The 15% discount is also limited to a R10 000 spending (meaning R1500 discount). More detail about this is on the following link: https://www.ebucks.com/web/eBucks/earn/fnb-premier-2017.jsp
The average family will purchase far more than R3 500 worth of groceries per month. We will be liable to give them vouchers to the value of R875 per month. The staff member will need R178 000 on an investment account to be able to receive such vouchers out of “interest income”.
Staff without internet
Xone Security Services can include these people, although we recommend that we only do this after we have completed the Shoprite presentation where we implement our suggested structure. These staff will then only work on gift-cards and we will exclude the SMS structures. There will be NO Risk at all. The staff's gift-cards’ will be loaded within seconds with additional values.
Option 1 (Partnership might be worth R77 Million - link explain calculation)
In Option 1, we purely want the commitment that management will in future involve staff without internet access, after the software development has been completed.
We can immediately start to provide staff 4% additional groceries when we support them..
Our business plan is to approach the Private Security Industry Regulatory Authority (PSIRA) in partnership with the security companies on board.
We believe that it will be possible to get support from other business owners in the security industry. (Business owners will rather approach wage negotiations with a tool, instead of taking the risk that labour unions approach them with the tool)
Our strategy is to pay 5% of the income the Homecare Foundation can earn for bedridden patients and child protection branches out of the security industry as a fee to the partnering companies.
The partnership where we can use a large number of personnel as a “strategic” tool to negotiate that Shoprite Group accept our proposal regarding software structures is worth a lot for the Homecare Board.
We therefore want to reward staff, even if they did not contribute during the development period. The Homecare Board will contribute 11% out of the tourism sector, which will result in such a person receiving 15% in additional groceries. (4% out of his/her own spending + 11% out of tourism sector)
We offer an Admin Fee of 10% on the grocery spending after they are being supported. We forecast that such Admin fee will be + R142 500 per month.
Option 2 (Partnership might be worth R135 Million)
In Option 2, we will also only engage staff without Internet access after software has been completed, and these staff members will start with an immediate 4% additional groceries.
We want to offer Xone's Board Members the opportunity to increase the funding out of the tourism & hospitality industry with an additional 10% towards the staff component, plus increase the admin fee with an additional 10% that can be earned on these staff members.
The Option is there that a staff member can on average receive on a monthly basis an additional R375 worth of groceries instead of R225. The monthly admin fee on these staff members might go up to R285 000 per month, instead of R142 500.
The Homecare Board is tasked to find a business partner within the Private Security Industry. We will work with a company if they commit towards Option 1, where they do not need to make any financial contributions to help staff without internet access.
It will however help the Homecare team to speed up the process to complete the task if we can arrange additional donations. We will then rely less on energy from property principals to negotiate with their staff to buy digital vouchers.
Our proposal is that the Homecare Board will increase our commitment towards Xone’s Board to help people without internet access based on donations we receive from Xone Security.
We will increase the staff contribution and the Admin contribution with 1% for every R5 000 donation we receive during a 4 month-period. Xone might decide to donate R10 000 per month, for a period of 4 months. The Homecare Board will then increase the Admin fee on these staff to 12% instead of 10%, and will furthermore add another 13% out of Tourism industry towards these staff instead of 11%.
This is only a proposal and it is not compulsory.
We ask Xone directors to notify us if they want to include staff without internet access. The Homecare board needs to block out a percentage of our “available amounts scheduled to honour Pledge Agreements”. This will be done based on the number of wage earners we might need to support in future working at our “Key Partners” (We try to use these available blocks strategically and efficiently.)
We use this "Available block" at the moment to negotiate with property companies and with financial advisors.
We understand that the Xone Board of Directors should agree to include staff working at the company before we can conclude a deal with the group. As discussed in our meeting earlier on the 3rd of December, the board members are welcome to register on an individual basis and we will support their Pledge Agreements in the same way as we support ordinary Homecare Friends we invite.
Although we know that management must decide individually if they want to participate, we believe that it will be a reasonable request for us to ask Xone Security Services that at least 4 managers/directors should join our project (We do not need all the managers to participate).
Staff will also be invited on an individual basis and it will be up to them individually to accept/decline invitations.
Our commitment is to pay fees on people who support us. So nobody will lose if the entire group do not join the project.
Our intention is actually that an estate agent and financial advisor should purchase a digital voucher of R1 000 per month for his/her own groceries without expecting any rewards. Our media support on their behalf is worth Thousands per month!
We will within week’s change our approach towards these people and only negotiate a partnership where we expect support of R1 000 orders per agent per month. This is such a small request per agent, that we do not expect any issues.
There is no estate agent that can claim that he/she does not exceed this amount on personal groceries!
Thank you for your time on this website.
Please notify Pieter on Pieter@homecare.org.za if you are keen to accept our invitation.
May God Bless!