Easy And Simple Way To Start Charcoal Business In Nigeria
Having multiple purposes, charcoal is in high demand locally in Nigeria and globally around the world. With the right management and strategy, people could make some profit out of the charcoal business. These are the simple ways to start and succeed.
Starting a charcoal business in Nigeria step-by-step
- Decide your charcoal business plan and target. There are various types of charcoal depending on the purposes and materials like hardwood, lump, coconut shell, binchotan, and others. Decide which charcoal that meets the market needs. Beforehand, it will be better to find the market whether you sell to local Nigerian or to countries with the winter season.
- Find the product source. You can supply your product by manufacturing by yourself or getting it from the supplier. If you have plenty of wood, you can produce the product by yourself. Another way is by buying from Oyo, Jebba, Minna, Jos, or other places in Nigeria where they produce charcoal massively. Then you can sell it to other places with higher prices.
- Do some math to calculate your business plan. Write down the possible expenses even the required capital. A sack of unprocessed charcoal is usually ₦4000-N5000 and the processed ones are N7000-N8000.
- Get a space and register the business. To run the charcoal business. You need a wide space at least to store the charcoal or even wider if you produce them by yourself. Then to make it legal, you need to register your business with the Corporate Affairs Commission or NEPC for export companies.
- Execute the plan and market your charcoal. If you plan to export it, make sure you fulfill the policies of international standards of charcoal and shipping. Advertise your business digitally to gain more market.
Things to consider before opening one :
– The place
The right location will benefit the business. Consider the distance between your storage to the closest shipping port or suppliers. This will save lots of time and costs. Make sure the storage place is also dry to preserve the high quality of charcoal.
– The budget
The amount of capital will determine how big your business will be. Do not store much amount of charcoal at the beginning of your business. Instead, you can increase by the time your market expands. Also, estimate the profit for each sale and the capital return.
– The product
The charcoal business relies mostly on the product, especially the availability and quality. Make sure you can get it most of the season and consider the characteristics like the ash and moisture level. Some types of charcoal only fit certain purposes like food grilling, art, heating, and more.
Reasons to Start a Charcoal Business in Nigeria
- The charcoal business belongs to the sustainable business.
- It doesn’t require advanced training and research. As long as you have a location to store the charcoal and a market to sell, you’re good to go.
- Any budget will fit. Even if you don’t have much money, you can start by being a reseller first with zero capital. Later you can save, find a site, and grow your business.
Charcoal in Nigeria is indeed promising to consider the demand. It’s relatively easy to start and even the Nigerian government gives incentives to exporters.
