The charcoal business is one of the oldest businesses in Nigeria, having been around for a long time. Before kerosene stoves or gas cookers, cooking and other activities were mostly done with charcoal, making it a popular product and a good business option.
As people look for cleaner ways to do things, the use of charcoal for cooking has decreased, but it still serves other purposes, making it a business option.
The charcoal business is complex. It could be the wholesale or retail sale of charcoal or its processing into charcoal powder. Charcoal is healthy. It’s a high-demand business. Charcoals are also affordable and not usually expensive. Since it’s no longer useful for cooking, its other benefits replace its utility.
Small or large businesses can be started. This is like wholesale and retail, with small-scale retail and large-scale wholesale. Small scale, like retail, involves selling products directly to customers in need. Wholesalers buy products in bulk and sell them to retailers.
The sale may also include selling to processing companies that use charcoal. If you’ll be processing the product, you can do it on a small or large scale, but the available capital determines the business’s size and scale.
DEMAND FOR CHARCOAL
The demand for a product helps people determine if an old business is viable or not. Charcoal is still used today, but not for traditional cooking. In some parts of the country, charcoal is still used, so you’ll still have customers who want it.
Charcoal has been shown to have health benefits, so health experts will use it when developing products for patients. Charcoal processing plants are also being built in the country to sell the product.
Its sales on a large or small scale require no special skills or training. It can be started by almost anyone who is ready to start a business and committed to doing so.
People who start a business only need a basic understanding of buying and selling and the product’s market. If you’re starting a processing plant, you’ll need to know how things work and how the processed product is made.
Starting a business is easy if it’s just product sales. Capital determines a business’s size. The start-up capital is reasonable because the products are cheap and you’ll be buying in bulk. Charcoal sales are easy to start and similar to other buying and selling businesses.
In the next subheads, I’ll further explain how to start a charcoal sale business and some factors that will help you make money and be successful.
Always do your own research, no matter what someone says about a business’s success or profitability. The research costs nothing but time, which will be well spent when the business starts bringing in profits. Since you’ve never been involved in the business, it’s important to do a thorough investigation. Research won’t hurt.
The research should tell you what to expect and the challenges ahead. It teaches future business owners how to succeed. Hence, It shows risks and solutions. It gives ideas for sustaining and growing the business. Missing any of the points is like being less prepared for something, especially something you plan to buy.
There are business experts, so consult them for reliable information. During the research, note even the smallest details and focus on business survival. Business research is crucial.
A business plan is self-explanatory. It’s as important as other business processes. After conducting extensive research, entrepreneurs must put their ideas on paper after deciding to start a business. The business plan covers how you plan to operate, costs, marketing, future projections, and contingency plans.
Business plans have many uses. When people need investors or a loan, it will be useful because it contains all business information. It’ll be a reference for the proposed business.
Start-up businesses need capital. It helps determine the business’s size and the number of items you’ll buy. You can create a budget to estimate the needed capital to run the business. This estimate should include location and product costs. The location, which is also important for the business, should be low-cost but high-traffic and not near competitors. You can register your business with the capital cost.
ACCESS TO CHARCOAL
You’ll need a charcoal supplier or a local place to buy it. When dealing with such products, it’s best to have multiple suppliers.
SELLING THE PRODUCT
Referrals and word-of-mouth are the most effective ways to advertise this business and will help you reach your goals and profit.