Do you want to read the PDF plan to start a cooking gas business in Nigeria from home and online to earn money monthly?
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In Nigeria today, many people have moved past the era of cooking with firewood, charcoal, and kerosine and have transitioned to using cooking gas.
The cooking gas business is a financially rewarding trade in Nigeria today because of the advancement that has taken place in Nigerians’ cooking equipment choices.
Also, thanks to the increasing population of homes and restaurants cooking with gas, you won’t have to complain of low patronage.
The cooking gas business in Nigeria requires training and a few steps in the right direction to thrive.
An average cooking gas retailer makes at least ₦10,000 to ₦150,000 profit daily.
If you calculate this profit by one month, you will get a figure that some businesses don’t get in two months.
Let’s not even talk about the wholesalers because these people make so much gain at the end of each day’s sales.
Steps to Starting Cooking Gas Business in Nigeria
Here are the steps to start a profitable cooking gas business in Nigeria:
1. Conduct a Market Analysis
Before you start any business, do market research.
With this, you will understand the trade you want to venture into, how much money you need to start, and how the business works.
You can do simple market research by meeting cooking gas dealers in your area.
These people will put you through how the business is run so you don’t incur losses while at it.
Also, they will give you clues on how to register your business.
2. Write a Business Plan
A business plan is vital for starting a lucrative business in Nigeria.
After doing a business analysis, the best step is to write a business plan, especially if you want to venture into the business on a large scale.
What are the strategies you wish to employ to run your business?
How much does it cost to start?
How do you want to raise the startup capital?
All these are necessary for the cooking gas business in Nigeria.
3. Get the Startup Capital
By now, you must have known how much you need to start your cooking gas business.
This capital includes money to rent a shop (if it’s a retail business), buy business equipment, and buy gas refills.
We advise businesspeople to not borrow money to start a firm because, if the business fails, you may not repay the loan.
Instead, use your savings or sell your property to launch your cooking gas business.
If you must borrow to start a cooking gas business, insure the business and keep up with premium payments so that if anything happens to the industry, the insurance company will repay you.
4. Learn how to Refill the Gas
This business requires the potential dealers to know how to refill gas, especially the retailers.
You can learn this from other gas vendors in your area.
Look for an experienced gas retailer, submit under him as an apprentice for a few months, and know all about refilling gas.
5. Find a Suitable Location or Shop
You need a location where customers will come to patronize your business.
There are no specific locations for the cooking gas business.
Launching it in a populated area where your target audience lives will help you ensure you have a lot of customers patronizing your business daily.
Rent a shop distant from other businesses to ensure you can control the fire in case of a fire outbreak.
6. Acquire Required Tools
Upon finding a location, buying the equipment for your business is next.
Most gas dealers also sell cylinders, gas burners, and other cylinder parts.
You, too, generate profit from selling them aside from refilling gas.
7. Find a Supplier
If you thoroughly researched your market, you must have gotten contact with reliable suppliers.
This is when to contact a supplier to fill your cylinders from where you will refill them for buyers.
8. Start Refilling the Cooking Gas
Your cooking gas business is ready.
You can start refilling for customers.
You may offer a discount first to draw buyers to purchase from you, which is entirely up to you to decide.
Try to advertise your business and attract more customers as much as possible.
9. Register Your Business
It is at this point you make your business legal.
Apply for and receive a license from the Department of Petroleum Resources (DPR), mainly if you operate a large-scale gas plant.
This is to avoid disturbance or shutdown of your firm.
Equipment Needed to Start a Cooking Gas Business in Nigeria
To start a cooking gas business in Nigeria, either as a retailer or wholesaler, you may need the following equipment:
- Big gas cylinders for storing gas
- Fire extinguisher
- Hosepipe verve screw
- Startup capital
- An excellent location for business
- Weighing scale
- Gas pumps
1 Kg Cooking Gas Price in Nigeria
Today, one kg of cooking gas is sold at the rate of ₦1k+ in most states in Nigeria.
Cooking gas prices in Nigeria is not constant, just like fuel and other crude products.
Always verify to find out the updated prices.
Cooking Gas Business Cost
The cost of starting a cooking gas business in Nigeria will vary depending on several factors, including the size and location of your business, your supplier, the type of equipment you purchase, and the level of service you provide.
Expect to spend within ₦250k to ₦3m to start your cooking gas business in Nigeria.
Every business encounters setbacks and risks, including the cooking gas business.
One significant risk associated with this business is the fire explosion because of the highly flammable nature of liquified natural gas.
Fire explosions could result from gas leakage.
To curb this risk, be vigilant to know when gas leaks occur.
Have a fire extinguisher in case of a minor fire outbreak that may not require calling the fire service.
Starting a cooking gas business in Nigeria can be a challenging but rewarding experience.
With careful planning and execution, you can build a successful business that meets the needs of your customers.