How to start a cooking gas distribution business

By Bizna Brand Analyst

Indeed some businesses require a fewer level struggle to market and a business that deals in essential commodities is one of them. If you desire to start your own business and you are scared of taking the bold step to go ahead and setup the business simply because you are afraid of the hard task involved in making your business known by all and sundry, then you need to look at starting a business that deals with essential commodities or services.

One of the businesses that deal with essential commodities that you can comfortably start and make huge profit within few months of starting from, is the cooking gas supply business. Cooking gas is an essential commodity in most households. Therefore, if you live in a city where the distribution of cooking gas is not a government affair, then you can consider starting your own cooking gas distribution business.

Aside from few countries cum cities in the world where cooking gas can be directly distributed into apartments via already installed pipe lines, the usual practice is that people get their gas cylinder refilled by a retailer that deals in the distribution of cooking gas. The startup capital required to successfully start a cooking gas distribution business varies from city to city and from country to country- but on the average, it is not expensive to start a cooking gas distribution business. What is more, the business is highly profitable.

Now let us consider the steps to follow if you intend starting your own cooking gas distribution business from the scratch

1. Feasibility Studies and Market Survey is required

First things first; if you want to build a successful business as an entrepreneur, then you should spend time and resources in conducting thorough feasibility study and market survey. The report you derive from your feasibility study helps you to locate the most suitable locations to setup your business, the kind of trainings that you would need to be able to effectively manage the business, an estimated cost of the startup capital that you would need, your likely competitions and all you would need to setup and manage the business with. Your feasibility study should expose your strengths, your weakness, your opportunities and the threat you stand to face in the industry.

2. Draw up a Good Business Plan

The role of a good business plan in any startup business cannot be relegated to the background. Your business plan is not just a business tool that gives your business direction, but also a business tool that helps you access funding for your business.

One of the vital documents that will be required of you when you approach any bank for loan or when you want to seek an investor to invest in your business is your business plan. You don’t necessarily need to write a world class business plan if you want to start a cooking gas distribution business, but the bottom line is that you must ensure that you have a business plan in place before launching your business.

3. Raise Your Start–up Capital

Before going out there to raise the startup capital for your business, ensure that you have done a proper marketing survey and feasibility study to know the amount that you would need to setup a gas distribution business in your town In case you don’t have the required startup capital saved up somewhere, you can approach your bank for loan, you can approach investors and you can as well raise the money from your family members and friends.

4. Register a Business Name

There are no restrictions to the caliber of clients that you are likely going to attract when you start your cooking gas distribution business. The way you can put a restriction to how big you want to grow your business is by not considering to get your business registered.

Aside from the fact that you are expected to supply cooking gas to homes, you can also supply cooking gas to hotels, schools, clubs, restaurants and corporate organizations that run their own guest houses. Most of these clients would not want to do business with you when they realize that your business is not registered. So, ensure that you choose a business name for your cooking gas business, and get it legally registered with the corporate affairs commissions of your country.

5. Rent a space

One of the best locations to setup a cooking gas distribution business is in and around residential areas. The rule of thumb is to ensure that your shop is visible enough for people to notice. .

6. Purchase the Needed Equipment and Business Tools

Some of the things that you would need if you want to start a cooking gas distribution business are empty gas cylinders, rubber gas pipes, gas regulators, weighing machine and delivery van. You are also expected to make provisions for the purchase and installation of fire and safety gadgets in your shop.

7. Market Your Business and Map out Distribution Channels

If you are able to secure a good location for your business, you will struggle less to market your products. What you need to do if you want to market your cooking gas distribution business is to print handbills and adopt the door to door approach in distributing the handbills.

One of the approaches you can adopt if you have competitors in the community where your cooking gas distribution business is located is to offer a free pickup and delivery services to your clients. Ensure that you create a database for your customers and then map out your distribution channels