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Do you wish to start your own cooking gas refill business this year? Do you think the capital/money you have is enough to start one?
What if you have only have 250k or 300k in naira. Is that enough? and what and what do you need to learn?
First, get the right location. Location can greatly determine if you will succeed in the business or not.
You can start by renting two 50kg cylinders, rent your shop in a good market place, meet any fire service around for permit and so on - here are just the basic of everything.
However, this is 2024 and everything is now at a very high rate. Price of commodities have increased. Dollar to naira rates have also increases. So, the truth is that it may be difficult to still have enough money with you from the 250k - 300k right after you have gotten the necessary documents and permit. But for some retail reseller shops, documents such as DPR licence may not be necessary, unless fire service approval. Or are you planning to open an LPG gas skid plant? Even if your plan is a 500kg or 1.5tons gas skid, you will need DPR licence, as many of these LPG gas skid are stationed mostly in residential areas.
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That money may e too small. I will like to clear something up. In most cases, the idea of starting small may not eventually work for you, unless you have a good location and large mass area of people. Sometimes, starting small can become an issue if you don't have enough money to sustain the business. Don't let anybody give you the wrong motivation, say you should start small. As explained in my previous acticle, there is shortage in cooking gas business. It is when you enter you will know. If you buy 50kg, know that it is not the same 50kg you will get inside. That is the reason people fold up. Atleast have 500k. If you want to start mini gas shop, a standard one shows you are ready for business. And I won't recommend if you are starting new to start renting empty gas cylinders.
There are many things to consider, most especially in terms of shop renting. How much is for rent, and is it rent for days, weeks, months or years? So, what's is the durations and prices for rents - which eventually will differ from state to state. Know that rent in Lagos will be much different from that in ogun state. Moreover, even if it is within Lagos state itself, rent in agege will be lower compared to one in ikeja.
Now let's me break it down for cooking gas retail resellers. The fire permit for a small scale gas business is just 15k, and this is for ogun state, which may be different from your state. And it will safe you a lot from paying anytime they raid your shop. You should also have sort out the issue of location. A good market place means not only market. For the person asking, a good market place for gas is a place where people use most and it's residential area, restaurants, bar etc. Your shop shouldn't be close to any naked fire point e.g welder shop, food canteens, and not so close to a residential area for fire safety during outbreak. That's what the fire service will explain better for you.
Are you considering venturing into the LPG gas plant business or already running one? Don't let unexpected losses derail your success. GET YOUR COPY NOW!!!
👇 👇
However, if you can't raise capital beyond the 250k - 300k, start with rental of 50kg cylinder from a reputable gas distributor where you will be getting your gas. It will save you a lot, for the shortage. On every 50kg gas prepare your mind for 48kg inside, calculate your sales based on that. Don't over purge customers gas cylinder and make sure your scale is okay. You can take it to an existing gas shop nearby to confirm if it's reading same figure with yours. You must start with a minimum of (2) 50kg, but you can buy 25kg and rent 50kg or rent (2) of the 50kg, because gad cylinder is cost now. Then maybe, just maybe, that your 300k could eventually be enough to start.
Now, the reason why I said that the 300k will not be enough is that, you will need fire extinguisher with fire bucket, and scale with the equipment to fill the gas for the customer. Right after you have sort out the issue of shop rent. And if you have enough money to start the business, you will be able to sustain it for a long time. If you don't have enough money, you may fold up in 6 months or year to come.
Get up to 500k and open your gas mini shop. Go to the gas shops around you and make friends with the owners of the gas shop. And ask him or her how much does those things he or she is using in the shop worth. Go home and calculate it. And minus it from the amount that you have in hand. If you are not careful, you will buy those things and sell it back.
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That money is too small in 2024, especially with the way things are going in this country. You should get up to 500k, most especially if you haven't gotten the first-hand experience before, if you're a beginner. Get the experience, and only with money can you search for more information and knowledge. So, your first month may be full of losses, before you will start to understand the business.
Now, the profits in the business depends on your area, your location. If you the only gas retail reseller in that locality, good for you. You will make more money. Also, with the increasing price of 20 Metric Tons at various depots in Nigeria, don't expect that it is the same price you refilled last week that you will refill the next week, or even few days. Gas business need total monitoring.
Are you considering venturing into the LPG gas plant business or already running one? Don't let unexpected losses derail your success. GET YOUR COPY NOW!!!
👇 👇
However, if you just want to start the business with 300k, that is fine. So, you can rent two (2) of 50kg bottles and pay 15k fire permit inside the 300k. The money should remain.
For the purpose of people that asked this question, "If 250k - 300k is enough " - you need:
* Your cylinders (preferably 2 rented).
* Scale (preferably Camry).
* Fire extinguisher (small size, just keep 7-15k).
* Shop (not a big shop and you can go for the cheapest ).
* Your filling hose.
* Your nozzle/valve.
* Your mechanical tools/spanners.
* You can buy this metal bucket and small red and white gloss paint for your fire bucket (optional).
* Plastic kettle for leakage test.
Keep money aside for filling the cylinder at least 70 - 80kg. But, I did recommend you make it 400k, so that you will have nothing to worry about. The rest expenses can be sorted bit-by-bit. Such as transportation, pay for vigilante money for 6months or so, depending on your landlord. And 15k for fire permit. Spread the remaining money on other things.
Are you considering venturing into the LPG gas plant business or already running one? Don't let unexpected losses derail your success. GET YOUR COPY NOW!!!
👇 👇