Cooking gas has dominated the ancient devices such as firewood, stoves, charcoal, and probably electric cookers for the preparation of meals, as more than 70% of residents in urban areas now make use of cooking gas in their homes. This is because it serves as the fastest means of preparing meals, thereby reducing time wastage in the kitchen. In this post, we will show you how to start a cooking gas business in Nigeria.
Though the use of this abstract from crude oil has today extended from being used by family alone to public benefit, as we see it used in hotels, during occasions and other relevant places where it is unavoidable, like among bean cake sellers, chip fryers, and in fast-food restaurants.
What is more about cooking gas is that about 20% of the settlers in the rural areas have also adopted it, which with time will minimize the rate of deforestation among villages once more knowledge about cooking gas has been brought to them.
Meanwhile, it is most important to know that, with the above elaboration, the cooking gas business is one of the most lucrative businesses in Nigeria where those who have invested have no regret for doing so and are open to daily cash due to the demand for it by customers.
If you are convinced and ready to take the risk involved along with the availability of capital, then you are good to go.
Notwithstanding are you an intending starting up your cooking gas business in Nigeria, and have been troubled on getting the right and steps in setting up your cooking gas business, search no more as we bring to your table the systematic procedure that will equip you and also meet your customers’ demands while you journey on your cooking gas project.
- 1 How to start a cooking gas business in Nigeria
- 2 1. Consult experts in the business
- 3 2. Find a suitable location for your business
- 4 3. Determine the cost
- 5 4. Obtain a License from the Department of Petroleum Resources (DPR)
- 6 5. Get insurance and register your cooking gas business
- 7 6. Promote your cooking gas company
- 8 The dangers of the cooking gas business
- 9 Related
How to start a cooking gas business in Nigeria
These few steps will enrich those who have ventured into and could also fit you in as soon as you navigate them accurately taking immediate action as not being a novice as well. Below are steps to start a cooking gas business in Nigeria:
1. Consult experts in the business
This is one of the important aspects to consider while starting up the cooking gas business. Knowledge won’t just help you as a beginner but also create a solid platform where you can interact with your customers, which can either be beneficial or not. Aside from that, you need to stick to the already acquired knowledge and know when to apply it to your business tactics. Therefore, don’t be shy in trying to gain knowledge from those who have gone further than you in your intended business.
2. Find a suitable location for your business
What a relief it will be for your managers or you to be able to record higher statistics on those who use your product on a daily basis. This is only achievable when you have chosen a good site and can also accommodate the customers.
Aside from that, it is a standard from the department of petroleum resources to plant your gas business at a minimum distance of 15 meters away from buildings and things that might easily be affected in case of a fire break during operation.
3. Determine the cost
There is no business that starts freely without monetary involvement. It depends on your choice of business. This also goes with you starting a gas business. Having gotten the two steps above, you need to take an estimate by calculating the required materials like the mechanic scale, testing pool, electronic scale, electronic carousel, and much more on the site.
If possible, contact the dealers where needed and negotiate prices with them, including manpower involvement. And then make your estimate with the capital at hand, if only it could meet the required expenditure. Meanwhile, their availability will grant you quick approval from the DPR to commence your cooking gas business.
In addition, getting these is expected to cost you a total of 10–15 million naira, depending on your test and type of scale. It is also advised that you have more than that to avoid delays or meet up with price fluctuations that can arise on material bought from the market.
4. Obtain a License from the Department of Petroleum Resources (DPR)
This has the advantage of saving you from danger because starting a cooking gas business requires official approval from higher authority with policies that guide your potential and ownership of the business. This means you need to get a licence of cover from the DPR that will enable you to operate appropriately and protect you from interrogation by intruders.
However, while you are attempting to obtain your license, please also install all DPR requirements in your cooking gas business location and present to DPR documents containing a police report, fire planning approval, and state land, physical, and land planning permits. They will serve as your proof of readiness to start the lucrative cooking gas business.
5. Get insurance and register your cooking gas business
As an owner who would want to last long and to maintain a good name, you need to register your cooking gas business with the corporate affairs commission of Nigerian business as well as insure it with an insurance company in order not to lose due to a fire outbreak that may occur in the long run, especially when you are operating on a large scale.
6. Promote your cooking gas company
Thank God for social media, which has enabled business owners to expand beyond the boundaries of physical transactions. You can advertise your cooking gas business online to make it more public by using any of your preferred channels, either a Facebook account, YouTube, Twitter, etc. Make sure you place your business location, contact information, and type of service rendered, along with the image of your business, for easy traceability by interested customers.
The dangers of the cooking gas business
Everything being equal goes with its advantages and disadvantages, which are not far from the cooking gas business. Just as you start receiving the juicy profit after planting the business, also have it in mind that the following might occur while you take preferential measures immediately. They are:
1. Risk of fire Explosion: This occurrence is not rare; it is one that commonly occurs in a cooking gas business station which many owners seem to ignore until they fall victim to it. It is common because of its inflammable nature, which generally goes as liquified natural gas. Well, this is the best measure to take in order to avoid such an ugly situation.
This can be done when you quickly detect a leak in a gas cylinder and amend or replace it with another immediately. Therefore, always check your cylinder once you smell the liquid substance, which is cooking gas.
2. Price increase: A price increase can easily occur as a result of government regulation, which may cause an increase in price and sometimes scarcity. Gas, being a product of crude oil, can be affected by the price of the production center as well as the distributor and cooking gas stations.
Be it whole sellers or retailers, will increase their prices in order to make a profit. As a result, it reduces the use of cooking gas among those that can’t afford the current increase in price at that moment.