In case you want to know how to start cooking gas business in Nigeria. On this page you will soon get to find out some of the questions we have answered already about how much does it cost to start a cooking gas business in Nigeria and questions on how much does it cost to open a gas station in Nigeria – like some people will put it. Starting a gas refilling business requires you to have some capital set aside. So In other to know how to start a small scale cooking gas business in Nigeria you have to follow me to the end. Our detailed cooking gas business plan pdf is available so contact us to get a copy it will reveal to you all you need to know about gas refilling business and all of the things needed for gas business in Nigeria.
Haven’t said that, a lot of Nigerians are beginning to use cooking gas for a variety of domestic cooking purposes in their homes and it is encouraging. Deforestation will be reduced, our natural forests will be preserved, and potential disasters associated with desert encroachment, such as erosion, will be avoided as a result of this.
Beyond the economic benefits in cooking gas business, the increase in the number of people, particularly in urban areas, who use cooking gas has created a good business opportunity for smart entrepreneurs who can now trade in cooking gas and related equipment in order to make good profits.
The cooking gas business is extremely profitable, and you don’t have to break the bank in order to get your feet wet in the industry. With N300,000, you will be able to get your business up and running quickly, with nearly everything you need already in place. Moreover, this is a large-scale enterprise that anyone involved in it should be proud of.
What steps should one take to start a cooking gas business in Nigeria? Before we get into the specifics, let’s take a look at the profit potential of this venture as well as the risks that are involved.
So for all those who have been looking for How to start a Restaurant Business in Nigeria you can go ahead and get Cooking Gas cylinder to start with. It easy and cooks fast in minuites. This is used by almost all homes in the country now adays.
How Profitable is Cooking Gas Business in Nigeria
Using the 12.5kg cylinder as an example, you can see that the average profit you make from selling a 12.5kg cylinder of cooking gas is N500. You purchase at a unit cost of N2,500 or less and sell at a unit cost of N3,000 or more. With an average profit margin of N500 on each cylinder sold in one day, you will make N5,000 in a single day. During a month’s time, you will earn N5,000 x 30 = N150,000.
If you are in a reasonable position where you receive a high volume of petronage in your cooking gas business, then that is the lowest profit you can expect to make in the cooking gas business. The majority of people earn significantly more than what I calculated here. As a result, it is not an exaggeration.
For a business that started with N300, 000 in capital, a profit of N150, 000 is considered to be a super profit by any standard. Consider the possibility that if you invest more resources and raise the stakes, your profit will be significantly higher. Gas companies, both suppliers and retailers, are making a lot of money in this industry. If you take action right away, you can become one of them!
The Potential Risks in Cooking Gas Business
The Risk of Fire Explosion.
As with any industry, there are risks associated with it. The most serious risk associated with the cooking gas industry is a fire explosion, which occurs frequently due to the highly flammable nature of liquified natural gas. Even though this presents a significant problem, it is easily mitigated, if not prevented altogether.
To be able to prevent this in your cooking gas business, you must be on the lookout at all times for signs of leakage in those cylinders, as leakages are one of the most common causes of fire and explosion. You should also purchase a good fire extinguisher, which will come in handy in the event of a minor fire outbreak.
Government regulation is another potential risk in the business. If the government decides to raise the price of LPG today, some consumers may find it difficult to cope with the increase and may be forced to return to using kerosene or wood for cooking. As a result of this, you will lose some customers and your sales will decline.
The government, on the other hand, is constantly attempting to lower the price of cooking gas in order to encourage its use and discourage deforestation.
Now that you are aware of the risks associated with the cooking gas business and believe you are capable of dealing with them, how do you go about starting this business and what are the things you will need to have or put in place to be successful? Let’s get started with the answers to these questions –
What You Need To Start Cooking Gas Business
1. It Requires An Initial Capital:
According to specialists (those who are already in the industry), you can start your cooking gas business with as little as N300,000 and be able to purchase more than 20 cylinders, open a shop, and purchase the first few items you need. In this case, the cost of the shop is determined by the location. If you want to put your business in a prestigious neighborhood, you will have to spend somewhat more money to acquire a storefront, but the investment will be well worth it.
2. You Need to Get Training:
You must become linked to any experienced retailers or even depots for a period of around six months in order to master the fundamentals of the business. Learning how to refill a cylinder, transfer, and change a valve are all important skills to have. In addition, you will learn everything you need to know about the business. Likewise, you must be aware of where and how to obtain cylinders.
In order to learn how to operate your cooking gas business in an efficient manner, you can learn from any of the retailers you see along the highway, and if you are sufficiently knowledgeable, you can obtain all of the information you require there. In any case, it is possible that you will need up to six months to finish your apprenticeship.
3. You Need to Rent A Shop:
A shop to rent is the next step after completing your training and gaining the necessary skills. This is known as the shop rental process. The class of persons who use cylinder gas cookers tends to be more concentrated in metropolitan settings. Almost every section of Lagos is conducive to doing business, however some areas are more conducive to doing business than others.
4. Marketing and Advertisement:
When your cooking gas business company is up and working, you should begin marketing it. It is imperative that you implement every marketing tactic available to you in order to enhance your profits and stay afloat.
To begin, you will require less than 500k to get started. The profit margin on a 12.5kg cylinder sale is approximately N600, which means you must be located in a region where the threshold, that is, the population, allows you to conduct high volume sales each day or week in order to make a profit. It will be an added benefit and of great value to the business if you can get a delivery vehicle from the point of purchase plant to your target site. Increased sales can also be achieved by lowering your sale price; for example, instead of earning N600, you will earn only N400.
Your turnover will grow dramatically as a result of this. Marketing to customers on a door-to-door basis and providing home delivery services are also viable options. But keep in mind that starting a new business will always provide problems, and that patience will be required. That is why the holy Bible has it that, Paul planted the seeds, Apollos watered them, but only God brings them to fruition.
We are glad to seeyou enjoy this article as the tepby stepguidelineson How to Start Cooking Gas Business in Nigeria have been revealed already for you. Now, all questions now solved about how do I start a gas station in Nigeria and how profitable is cooking gas business in Nigeria has been all answered. Now you can see that with starting a cooking gas business in Nigeria is easy, if it was not many people will not have ventured into it. If you need more detailed information, please request for our cooking gas business plan in Nigeria.
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