Do you want to start Kerosene Distribution Business in Nigeria? Do you need a Kerosene Distribution Business Plan with Viability Analysis? Here it is. In fact, here are detailed kerosene business proposal for start-ups, inclusive of kerosene depots in Nigeria with current prices. So, if your question is,how do i start a kerosene business in nigeria? Here are the answers.
As a matter of fact, this ia a Sample Kerosene Distribution Business Plan with Viability Analysis suitable for Nigerian market. It is a viability study designed for Kerosene distribution business in Nigeria. In fact, it covers how to start kerosene retail business in Nigeria. A kerosene distribution business involves buying kerosene in wholesale from refineries and production companies and then distributing them to retailers and end users.
Who Needs this business Plan?
Table of Contents
A Kerosene distribution business is profitable. However it requires some reasonable capital to start. It also requir the approval or distributive liense from the regulating body, Pipeline and Product Marketing Company (PPMC).
Kerosene basically is a type of flammable fuel commonly. Kerosene is burned as an energy source for stoves, lanterns, jet fuels and furnaces. In addition, it’s also used as a main ingredient in solutions of insecticides and various greases. This business plan is designed to take care of all manner of distributive and retail business along kerosene distribution value-chain. So, if you re some how involved or intend to be involved in kerosene business in Nigeria at any level along kerosene marketing value chain, this business plan is suitable for you.
Furthermore, this business plan is needed to articulate the cost of establishment a kerpsene distribution business. So, the entire oil and gas distribution industry comprising of businesses that basically manage oil and gas distribution systems need this business plan. Therefore, companies involved in kerosene marketing that buys directly from the refineries or depots and sell to a distribution system need this plan template. In fact, oil and gas brokers or agents that arrange for oil and gas to be sold via distribution systems operated by other companies also, need this business plan.
Furthermore, Kerosene Distribution Business Plan with Viability Analysis requires a lot of strategic planning to start. In fact, let me use this opportunity to inform you that to get this properly done you’ll need some business developmnt services from us, Complete Full Marks Consultants (CFMC) Limited. In that case, CFMC Limited backs you up with professional business consulting services. No matter the scope of your operation, you need our professional support.
Highlights of the Business Plan:
Furthermore, this business plan is designed to feature certain essential elements of regular business plan formats. Therefore, the highlights of this business plan includes SWOT Appraisal. Added re feasibility analysis generating unit cost of production and turnover volumes. The market and marketing analysis are the other highlights. In fact, the variety of product and market segmentations re the other concepts re well defined in this business plan. So, follow us to see how these re reflected in this business plan.
The Executive Summary
This business plan is for Complete Kerosene distribution Company Ltd. Complete Kerosene distribution Company Ltd is a legally registered company in Nigeria. It has a registerd certificate to distribute and supply kerosene to the distributive network and to end users in Nigeria. It has its head office in Kano.
This is a 3-year business forecast for kerosene distribution in Nigeria. The feasibility analysis reveals that Complete Kerosene distribution Company Ltd. will be generating a total turnover of N280,000,000.00 annually from the first year of operation. In fact, based on our 25% gross margin target, this gives a total gross profit of N70,000,000.00 and 15% net margin of N42,000.000.00.
Complete Kerosene distribution Company Ltd is incorporated in Nigeria in 2018 by a group of young entrepreneurs. They are Mrss Luke, Adamu, John, Musa, Mattew and Peter. Their shareholding is in propotion of 25%, 15%, 15%, 15%, 15% and 15% respectively.
We understand, we re really venturing into a business that is highly saturated with big players. The influence of multinational companies in this business is highly influencial. However, our research shows that these big players are unable to meet up with the demand from industrial sector of the economy. Especially, the micro sector of the economy is not adequately catered for. Moreover, the cottage industries that are in the rural communities. Therefore, our major clientel is going to come from this section of Nigeria’s economy. In fact, thi’s why this kerosene distribution plant is situated in Kano with outlet branches in Kaduna, Jos, Abuja, nd Lokoja. Our expansion programme will see us opening more distributive outlet in Warri, Ibadan, and Owerri in the next 2 years. This is to be able to cover the entire country.
In the light of this, we are going to leverage on five main competitive advantages. These are:
- Quality unadulterated products.
- Our customer base – Micro and cottage industry centric.
- Availability all-round-year – availability of volumes demanded
- A highly creative, customer centric and proactive distributive approach
- Lastly, improved workforce welfare.
The business Objectives
The objectives for Complete Kerosene distribution Company Ltd are to:
- Have our products and services in most micro business outfits within our operating environment.
- Cover major cities in Nigeria – This is to reach about 60% of the retail outlets.
- Maintain gross profit margins at 25%, and 15% net profit margin.
- Develop a sustainable Kerosine distribution company that survives on its own cash flow.
In the light of the above, our goals include;
- Becoming a leading Kerosene supply company in the environment of our operations within our first three years of operation
- Expanding our company operations to cover all parts of Nigeria.
Furthermore, the vision for Complete Kerosene distribution Company Ltd is to;
Become the biggest kerosene disribution company in Nigeria.
We parade a formidable management team of experienced managers. The ownership of Complete Kerosene distribution Company Ltd is made up of young talented and skilled artisans who ‘ve a number of years of industry eperience having worked for some of the Multynational companies at one time or the other.
Our consultants, Complete Full Marks Consultants Limited, have been able to appraise our internal and external envirionments to determine how much strength, weakness, opportunity and threat to our existence posed by these factors. One particular factor disctated is that internal economies of scale is not there yet to generate the lowest per unit cot of production. However, we are leveraging on the large market available in the country to foster high turnover which will take care of the weaknesses and the threats.
Our Product For Kerosene Distribution Business Plan with Viability Analysis
Our products re going to be generally centred on kerosene and accessories supplies and distribution. Because our clientele is going to be those of the large number of micro industries, homesteads and cottage industries – our products re to be distributed to cater for all sphere of our clientele.
The Contributions of our Products and Services to the economy are;
- All-year-round availability of Kerosene – there will be no artificial scarcity created.
- Improved lifestyle in the our communities, which leads to
- Improved wellbeing of the populace
- Creating employment opportunities – over 500 graduates re to be employed in the next 3 years.
- Creating business opportunities for the population who will be invold in one way or the other in the distrivutive value chain of our business.
- Procurement and supply of high quality kerosene to our clients
- Our capacity to deliver across Nigeria.
What we Bring into the business
In the light of the above, we bing into this business;
- Good business knowledge, skill and practical experience in the oil and gas sector
- The capacity to consistently deliver quality kerosene sullies.
- Market watch – this is for a good understanding of the market trends to avoid scarcity.
- Finally, our staff bring modern online operational and technical skills.
The Financial Plan For Kerosene Distribution Business Plan with Viability Analysis
Furthermore, the materials and equipment required for kerosene distribution business in Nigeria include Delivery trucks, office building, truck maintenance tools, company vehicles, kerosene pumping machines, weighing and measuring tools etc.
As a matter of fact, the analysis of these are in this business plan. The financial analysis segment details all of these. Therefore, included re estimates on capital funding and assets requirement. Then are, turnover and income statement forecast for the period under plan. The cash flow analysis is strutured for the first one year operation.
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Understand that whether existing or intending business, you will need this business plan format when you make applications for government and non – government business capital grants. In addition, this format is also suitable for bank loan applications and for inviting investors. In fact, when you are writing your investment proposals or concept notes for business loan grant and start – up competitions, this must be handy. Again, this is the format of business plan required for dealership approval by the regulatory bodies in Nigeria. If you have any challenges, please, contact us.
The Final Copy of Kerosene Distribution Business Plan with Viability Analysis
Furthermore, this business plan’s final copy is always available. You can always have them on request at minimal cost. Therefore, if you must win the loan application or attract investors, you need this part of the business plan. This is where we generate the parameters that determine if you are capable of winning the loan application or attract the investor.
Finally, I wish to let you know that Complete Full Marks Consultants (CFMC) Limited is a firm of Chartered Accountants, Auditors, Taxation and Management Consultants. Our professional expertise is always brought to bear in our business plan development. In fact, our several years of industry experience speaks for us. Therefore, we can assist you will all the business support services you desire.
Call us on +234 8034347851 or email us via firstname.lastname@example.org
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Founder/Managing Partner of Complete Full Marks Consultants Ltd. An Economist turned Chattered Accountant and Tax Practitioner with over 37 years of industrial experience.