Are you about starting a kerosene retail outlet? If YES, here is a complete sample kerosene retail outlet business plan template & feasibility report you can use for FREE.
Okay, so we have considered all the requirements for starting a kerosene retail outlet. We also took it further by analyzing and drafting a sample kerosene retail outlet marketing plan template backed up by actionable guerrilla marketing ideas for kerosene retail businesses. So let’s proceed to the business planning section.
Table of Content
- Why Start a Kerosene Retail Outlet?
- 1. Industry Overview
- 2. Executive Summary
- 3. Our Products and Services
- 4. Our Mission and Vision Statement
- 5. Job Roles and Responsibilities
- 6. SWOT Analysis
- 7. MARKET ANALYSIS
- 8. Our Target Market
- 9. SALES AND MARKETING STRATEGY
- 10. Sales Forecast
- 11. Publicity and Advertising Strategy
- 12. Our Pricing Strategy
- 13. Startup Expenditure (Budget)
- 14. Sustainability and Expansion Strategy
Why Start a Kerosene Retail Outlet?
One easy business that requires to a very large extent a low start – up capital which an aspiring entrepreneur who is looking towards starting a business in the oil and gas industry can start is retailing kerosene. Unlike petrol that is highly flammable, it is safer to retail kerosene because it is not as highly flammable as petrol. As such, if you are looking towards owning a small business in the oil and gas industry, then one of your options is to start retailing kerosene.
All you need to do to launch this type of business is to have a steady supply of kerosene, drums and measuring containers, et al. This type of business is suitable for locations where residents use more of kerosene stoves than gas cookers or electric cooker.
One other thing that you ought to have in mind is that you have to undertake an exhaustive research. Why is this so? Well, this is especially so because you will need all the information you can get to build a well-grounded Kerosene retailing business.
Yet another thing that you ought to have in mind is that you will need to draw up a business plan. Business plans are like maps that help businesses to chart a good and profitable course for their business. These plans have to be thoroughly adhered to in order to make headway in the most appropriate way. Below is a sample kerosene retailing business plan that will help you a great deal.
A Sample Kerosene Retailing Outlet Business Plan Template
1. Industry Overview
Kerosene basically is a type of flammable fuel commonly burned as an energy source for stoves, lanterns, jet fuels and furnaces. It is also used as a main ingredient in solutions of insecticides and various greases. For the purpose of this business plan, we will be concentrating on kerosene that is used for cooking via kerosene stoves.
Kerosene is used mainly in communities where people can’t afford cooking gas or as an alternative to cooking gas. In Nigeria and in most African and Asia countries, kerosene stoves are popular because it is cheaper to afford when compared to a gas cooker. This is the reason why kerosene retailing business is a thriving business enterprise in developing and underdeveloped countries scattered all across Africa, Asia and South America.
The kerosene retailing line of business for the purpose of cooking is indeed a thriving line of business and pretty much active in Africa, Asia and South America they generates several millions of US dollars annually from several registered and unregistered small – scale, medium scale and big kerosene retailing business scattered all around Africa, Asia and South America. This line of business is responsible for the employment loads of people directly and indirectly all around the world.
Any aspiring entrepreneur that is considering starting kerosene retailing business whether on a small scale or large scale should ensure that he or she conducts thorough market survey and feasibility studies so as to get it right. The truth is that, this type of business do pretty well when it is strategically positioned. Places where there are loads of poor people and low income earners are ideal for this type of business.
Over and above, kerosene retailing business is a profitable business venture and it is open for any aspiring entrepreneur to come in and establish his or her business; you can chose to start on a small scale with just a tank in a street corner or if you have the capital and business exposure, then you can chose to start on a large scale with a tank farm and several distribution tankers.
2. Executive Summary
Mama Mabel Kerosene Ventures is a neighborhood kerosene retailing business that will be based in Shomolu – Lagos State, Nigeria. We are registered under the Nigerian Corporate Affairs Commission (CAC). Although we intend starting out from a small shop with few drums, but that will not in any way stop us from maximizing our potential in the kerosene retailing line of business. We hope to grow the business beyond Shomolu to other local government area in Lagos State.
Our business goal as a kerosene retailing business is to become the number one choice of residence in Shomolu and the whole of the communities where we intend retailing our kerosene. As a business, we are willing to go the extra mile to invest in building a standard kerosene depot and also to hire efficient and dedicated employees. We have been able to secure permits from all relevant departments both at local government level and state level in Lagos state.
Mama Mabel Kerosene Ventures is set to redefine how community based kerosene retailing business should be run, not just in Shomolu – Lagos State, but also in the whole of the Nigeria. This is why we have put plans in place for continuous training of all our staff at regular interval.
No doubt the demand for kerosene is not going to plummet any time soon because there will always be people who can’t afford gas cooker and electric stoves et al, which is why we have put plans in place to continue to explore all available market around the communities where we intend retailing our kerosene.
In the nearest future, we will ensure that we create a wide range of distribution channels all across Lagos – Nigeria. With that, we know we will be able to maximize profits in our business.
Our strongest selling point at Mama Mabel Kerosene Ventures is the unique distribution channels. There is hardly any customer that will purchase our kerosene who would not want to come back and make more purchase – we take delight in welcoming repeat customers over and over again.
Mama Mabel Kerosene Ventures will at all time demonstrate her commitment to sustainability, both individually and as a firm, by actively participating in our communities and integrating sustainable business practices wherever possible.
We will ensure that we hold ourselves accountable to the highest standards by meeting our customers’ needs precisely and completely. We will cultivate a working environment that provides a human, sustainable approach to earning a living, and living in our world, for our partners, employees and for our customers.
Our plan is to position our kerosene retailing business to become the leading brand in the kerosene retailing line of business in the whole of Lagos State – Nigeria, and also to build a kerosene tank farm and become a major distributor of kerosene through Nigeria and the West African Coast.
This might look too tall a dream but we are optimistic that this will surely come to pass because we have done our research and feasibility studies and we are enthusiastic and confident that Shomolu – Lagos State is the right place to launch this type of business before spreading to other local government areas all across Lagos State.
Mama Mabel Kerosene Ventures is a family business that will be owned by Mrs. Justina Graham – Douglass and her immediate family members. Mrs. J. Graham Douglas is an astute business woman who has been able to start and grow several businesses before starting Mama Mabel Kerosene Ventures. She has a degree in business administration from the University of Lagos and also an alumni of FATE Foundation business school, Ijora Lagos.
3. Our Products and Services
We are very much aware of the importance of having very good products and services. This is one of the reasons why we have made great plans to have the best of products and services. At Mama Mabel Kerosene Ventures we retail kerosene in every locations where we intend positioning our kerosene tanks.
Our intention of starting Mama Mabel Kerosene Ventures is to make profits from the kerosene retailing line of business and we will do all that is permitted by the law in Lagos State – Nigeria to achieve our business aim and ambition.
4. Our Mission and Vision Statement
Our vision as a kerosene retailing line of business in the whole of Lagos State – Nigeria, and also to build a kerosene tank farm and become a major distributor of kerosene throughout Nigeria and the West African Coast.
Our mission is to build a kerosene retailing business that will grow from small to big and our products can be found in different locations all around Lagos.
Our Business Structure
Ordinarily, we would have succeeded in running a kerosene retailing business with few employees, but as part of our plan to build a top flight community based kerosene retailing business in Shomolu – Lagos State, we have perfected plans to get it right from the onset which is why we are going the extra mile to ensure that we have competent employees to occupy all the available positions in our company.
The picture of the kind of community based kerosene retailing business we intend building and the business goals we want to achieve is what informed the amount we are ready to spend to ensure that we build a standard kerosene depot, dedicated workforce and robust distribution network.
In view of that, we have decided to hire qualified and competent hands to occupy the following positions at Mama Mabel Kerosene Ventures;
- Chief Executive Officer (Owner)
- Kerosene Depot Manager
- Human Resources and Admin Manager
- Sales and Marketing Officer
- Kerosene Depot Casual Workers
- Truck Drivers/Kerosene Distributors
- Customer Service Executives
5. Job Roles and Responsibilities
Chief Baker/Chief Executive Officer – CEO (Owner):
- Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
- Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
- Responsible for fixing prices and signing business deals
- Responsible for providing direction for the business
- Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
- Responsible for signing checks and documents on behalf of the company
- Evaluates the success of the organization
Kerosene Depot Manager
- Responsible for overseeing the smooth running of the kerosene depot
- Makes sure that quality in maintained at all times
- Maps out strategy that will lead to efficiency amongst workers in the kerosene depot
- Responsible for training, evaluation and assessment of the workforce
- Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
- Ensures that the kerosene depot meets the expected safety and health standard at all times.
Human Resources and Admin Manager
- Responsible for overseeing the smooth running of HR and administrative tasks for the organization
- Updates job knowledge by participating in educational opportunities; reading professional publications; maintaining personal networks; participating in professional organizations.
- Enhances department and organization reputation by accepting ownership for accomplishing new and different requests; exploring opportunities to add value to job accomplishments.
- Defines job positions for recruitment and managing interviewing process
- Carries out staff induction for new team members
- Responsible for training, evaluation and assessment of employees
- Oversees the smooth running of the daily business activities.
- Manages vendor relations, market visits, and the ongoing education and development of the organizations’ buying teams
- Helps to ensure consistent quality and quantity of kerosene
- Responsible for the purchase of kerosene and measuring materials (drums, bottles, and plastics et al)
- Responsible for planning sales, monitoring inventory, selecting the merchandise, and writing and pricing orders to vendors
- Ensures that the organization operates within stipulated budget.
Sales and Marketing Manager
- Manages external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
- Models demographic information and analyze the volumes of transactional data generated by customer purchases
- Identifies, prioritize, and reach out to new partners, and business opportunities et al
- Responsible for supervising implementation, advocate for the customer’s needs, and communicate with customers
- Develops, executes and evaluates new plans for expanding increase sales
- Documents all customer contact and information
- Represents the company in strategic meetings
- Helps to increase sales and growth for the company
Kerosene Depot Casual Workers
- Responsible for measuring and filling kerosene into various containers as demanded by clients
- Responsible for carrying out all casual or unskilled jobs in the kerosene depot
- Assists in loading and unloading of kerosene from tanker to tank farm
- Handles any other duty as assigned by the kerosene depot manager
- Responsible for preparing financial reports, budgets, and financial statements for the organization
- Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
- Responsible for financial forecasting and risks analysis.
- Performs cash management, general ledger accounting, and financial reporting
- Responsible for developing and managing financial systems and policies
- Responsible for administering payrolls
- Ensures compliance with taxation legislation
- Handles all financial transactions for the organization
- Serves as internal auditor for the organization
Distribution Van Drivers:
- Delivers customer’s orders promptly
- Runs errand for the organization
- Any other duty as assigned by the sales and marketing executive and the depot manager.
Client Service Executive
- Ensures that all contacts with customer (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
- Through interaction with customers on the phone, uses every opportunity to build client’s interest in the company’s products and services
- Manages administrative duties assigned by the store manager in an effective and timely manner
- Consistently stays abreast of any new information on Isabella House of Cupcakes™ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to customers when they make enquiries
6. SWOT Analysis
Due to our drive for excellence when it comes to running a standard kerosene retailing business, we were able to engage some of the finest business consultants in Lagos – Nigeria to look through our business concept and together we were able to critically examine the prospect of the business and to access ourselves to be sure we have what it takes to run a standard kerosene retailing business that can compete favorably in the kerosene retailing line of business.
In view of that, we were able to take stock of our strengths, our weakness, our opportunities and also the threats that we are likely going to be exposed to in Shomolu – Lagos, Nigeria and also in other cities that we intend retailing our kerosene. Here is a of what we got from the critically conducted SWOT Analysis Mama Mabel Kerosene Ventures;
Our strength lies in the fact that we retail kerosene in various container sizes. We have state of the art kerosene depot facility and equipment that has positioned us to meet the demand of kerosene in Shomolu and other local government areas even if the demand tripled over night or if we have a massive order to meet and emergency need.
Another factor that counts to our advantage is the background of our Chief Executive Office; she has a robust experience in the industry and also a pretty good academic qualification to match the experience acquired which has placed her amongst the top flight business women in Nigeria. We are not ignoring the fact that our team of highly qualified and dedicated workers will also serve as a strength for our organization
We do not take for granted the facts that we have weaknesses. In fact, the reality that we are setting up a kerosene retailing business in a city with other smaller and larger kerosene retailing businesses might likely pose a challenge for us in breaking into the already saturated market in Shomolu – Lagos State.
In essence our chosen location might be our weakness. But never the less, we have plans to launch out with a big bang. We know with that, we will be able to create a positive impression and we have a proper handle when it comes to building on already gather momentum.
The opportunities available to us are unlimited. Loads of people make use of kerosene stoves and purchase kerosene on a daily basis and all what we are going to do to push our push our kerosene to them is already perfected. Shomolu and other similar towns in Lagos state is just ideal for kerosene retailing business because loads of people who resides in this locations make use of kerosene stoves as against gas cookers or electric stoves hence there is a large market for kerosene.
The threat that is likely going to confront us is the fact that we are competing with already established kerosene retailing businesses in Shomolu – Lagos State and also there are other entrepreneurs who are likely going to launch similar business within the location of our business.
Of course, they will compete with us in winning over the available market. Another threat that we are likely going to face is unfavorable government policies and economic downturn. Usually economic downturn affects purchasing / spending powers.
7. MARKET ANALYSIS
- Market Trends
It is common trend in the kerosene retailing business to find kerosene retailers positioning their business in locations and communities where the average household makes use of kerosene stoves as against gas cookers or electric stoves.
If you make the mistake of positioning this type of business in highbrow areas like Victoria Island, Victory Garden City (VGC), Lekki, Eric Moore – Surulere and GRA – Ikeja et al. Kerosene retailing business will do pretty well in places such as Alimosho LGA, Mushin, Ajegunle, Borgia, Oshodi, Mile 12, Ikorodu, Iyana Ipaja and Ketu et al.
Lastly, in the bid to stay afloat and continue to make profits from this line of business, most people that retail kerosene tend to position their kerosene tanks in strategic locations so as to maximize the market.
8. Our Target Market
When it comes to retailing kerosene, there is indeed a wide range of available customers. In essence, our target market can’t be restricted to just a group of people, but all those who make use of kerosene stoves and also all those who make use of coals, sawdust and woods et al as they would need kerosene to produce fire.
One thing is certain; there are no restrictions to the demographic and psychographics composition of the target market for kerosene. This goes to show that the target market for kerosene is wide and far reaching, you can create your own make niche yourself to serve a specific purpose.
In view of that, we have conducted our market research and we have ideas of what our target market would be expecting from us. We are in business to engage in retailing and wholesale distribution of kerosene to the following groups of people;
- Households who make use of kerosene stoves for cooking
- Restaurants and canteens that make use of kerosene stoves, sawdust stoves and coals for cooking
- Households who make use of sawdust stoves and coals for cooking
- Small scale kerosene retailing business.
Our competitive advantage
First and foremost, the fact that anybody with a business cum retailing skills can decide to start kerosene retailing business means that the business is open to all and sundry hence it is expected that there will be high – level competition in the industry. There is hardly any busy community or even street that you won’t find one or more people retailing kerosene especially on a small scale level.
As a standard kerosene retailing business, we know that gaining a competitive edge requires a detailed analysis of the demographics of the surrounding area and the nature of existing competitors. And even if you are successful at first, new competitors could enter your market at any time to steal your regular customers. Hence we will not hesitate to adopt successful and workable strategies from our competitors.
We are going to be one of the very few kerosene retailing business in Shomolu – Lagos State that will also engage in wholesale distribution of kerosene and also with various outlets scattered all across the city of Lagos.
Another competitive advantage that we have is the vast experience of our management team, we have people on board who are highly experienced and understands how to grow business from the scratch to becoming a national phenomenon. Our large and robust distribution network and of course our excellent customer service culture will definitely count as a strong strength for the business.
One thing is certain, we will ensure that in future, we open our outlets in various cities not just in Lagos State, but also all across Nigeria. With that our brand will be well communicated and accepted nationally.
Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category (startups kerosene) in the industry, meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our aims and objectives. We will also give good working conditions and commissions to freelance sales agents that we will recruit from time to time.
9. SALES AND MARKETING STRATEGY
- Sources of Income
Mama Mabel Kerosene Ventures is established with the aim of maximizing profits in the kerosene retailing line of business both in Lagos State and throughout key cities in Nigeria and we are going to go all the way to ensure that we do all it takes to sell our kerosene both in retail and wholesale to a wide range of customers who make use of kerosene stoves, sawdust stoves and coal stoves et al.
Mama Mabel Kerosene Ventures will generate income by simply selling kerosene; we are in the kerosene retailing line of business to retail kerosene to households and small scale kerosene retailing business.
10. Sales Forecast
One thing is certain when it comes to kerosene retailing business, if your depot cum shop is centrally positioned and easily accessible in a place where the average household make use of kerosene stoves, sawdust stoves and coal stoves, you will always attract customers cum sales and that will sure translate to increase in revenue generation for the business.
We are well positioned to take on the available market in Shomolu – Lagos State and every other city both in Lagos State and other states in Nigeria where our kerosene will be sold and we are quite optimistic that we will meet our set target of generating enough income / profits from the first six month of operations and grow the business and our clientele base.
We have been able to critically examine the kerosene retailing business and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projection is based on information gathered on the field and some assumptions that are peculiar to startups in Lagos – Nigeria.
Below are the sales projection for Mama Mabel Kerosene Ventures, it is based on the location of our business and other factors as it relates to small scale and medium scale coconut oil production company start – ups in the united states;
- First Fiscal Year-: N240,000
- Second Fiscal Year-: N550,000
- Third Fiscal Year-: N1 Million
N.B: This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same product and customer care services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.
- Marketing Strategy and Sales Strategy
Before choosing a location to launch Mama Mabel Kerosene Ventures, we conduct a thorough market survey and feasibility studies in order for us to be able to be able to penetrate the available market in Shomolu – Lagos State and other cities where we intend positioning our business.
We have detailed information and data that we were able to utilize to structure our business to attract the numbers of customers we want to attract per time and also for to compete with other kerosene retailing business.
We hired experts who have good understanding of the kerosene retailing line of business to help us develop marketing strategies that will help us achieve our business goal of winning a larger percentage of the available market in Shomolu and other Local Government Areas in Lagos State where we intend retailing our kerosene.
In other to continue to be in business and grow, we must continue to sell our kerosene to the available market which is why we will go all out to empower or sales and marketing team to deliver our corporate sales goals. In summary, Mama Mabel Kerosene Ventures will adopt the following sales and marketing approach to sell our wide range of cupcake flavors;
- Introduce our kerosene retailing business by sending introductory letters to residence, merchants and other stakeholders both in Shomolu and in other Local Government Area in Lagos State.
- Open our kerosene retailing business with a party so as to capture the attention of residence who are our first targets
- Engage in road show in targeted communities all around Shomolu – Lagos State from time to time to sell our products
- Advertise our products in community based newspapers, local TV and radio stations
- List our business and products on yellow pages ads (local directories)
- Leverage on the internet to promote our kerosene retailing business
- Engage in direct marketing and sales
- Encourage the use of Word of mouth marketing (referrals)
11. Publicity and Advertising Strategy
Regardless of the fact that our kerosene retailing business is a standard one that can favorably compete with other leading kerosene retailing business in Lagos State and Nigeria as a whole, we will still go ahead to intensify publicity for all our products and brand. We are going to explore all available means to promote Mama Mabel Kerosene Ventures.
Mama Mabel Kerosene Ventures has a long term plan of opening outlets in various locations all around Lagos State and other key cities in Nigeria which is why we will deliberately build our brand to be well accepted in Shomolu – Lagos State before venturing out to other cities in Nigeria.
As a matter of fact, our publicity and advertising strategy is not solely for selling our products but to also effectively communicate our brand. Here are the platforms we intend leveraging on to promote and advertise Mama Mabel Kerosene Ventures;
- Place adverts on both print (community based newspapers and magazines) and electronic media platforms
- Sponsor relevant community programs
- Leverage on the internet and social media platforms like; Instagram, Facebook , twitter, et al to promote our brand
- Install our Bill Boards on strategic locations all around major communities in Lagos State
- Engage in road show from time to time in targeted communities
- Distribute our fliers and handbills in target areas in Shomolu
- Position our Flexi Banners at strategic positions in the location where we intend getting customers to start patronizing our kerosene.
- Ensure that all our staff members wear our customized clothes, and all our official cars and distribution tankers are customized and well branded.
12. Our Pricing Strategy
When it comes to pricing for products such as kerosene, there are no hard and fast rules; the prices depends are based one per liter or the container in which the kerosene are placed in.
In view of that, our prices will conform to what is obtainable in the industry but will ensure that within the first 3 to 6 months our kerosene are sold a little bit below the average prices when compared to other kerosene retailing businesses in Lagos State – Nigeria. We have put in place business strategies that will help us run on low profits for a period of 6 months; it is a way of encouraging people to buy into our brands.
- Payment Options
The payment policy adopted by Mama Mabel Kerosene Ventures is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.
Here are the payment options that Mama Mabel Kerosene Ventures will make available to her clients;
- Payment via bank transfer
- Payment with cash
- Payment via online bank transfer
- Payment via check
- Payment via bank draft
In view of the above, we have chosen banking platforms that will enable our client make payment for farm produces purchase without any stress on their part. Our bank account numbers will be made available on our website and promotional materials to clients who may want to deposit cash or make online transfer for the purchase of kerosene in wholesale.
13. Startup Expenditure (Budget)
In setting up any business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to go big by renting a place, then you would need a good amount of capital as you would need to ensure that your employees are well taken care of, and that your facility is conducive enough for workers to be creative and productive.
This means that the start-up can either be low or high depending on your goals, vision and aspirations for your business.
The tools and equipment that will be used are nearly the same cost everywhere, and any difference in prices would be minimal and can be overlooked. As for the detailed cost analysis for starting a kerosene retailing business; it might differ in other countries due to the value of their money.
We know that no matter where we intend starting our kerosene retailing business, we would be required to fulfill most of the items listed below;
- The Fee for registering the business (venture) in Lagos State – Nigeria – N15,000
- Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) –N30,000
- Marketing promotion expenses for the grand opening of Mama Mabel Kerosene Ventures – N15,000
- Cost for hiring Business Consultant – N20,000
- Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – N20,000
- Cost for payment of rent for 12 month and renovation inclusive – N24,000
- Other start-up expenses including stationery and phone and utility deposits – N5,000
- Operational cost for the first 3 months (salaries of employees, payments of bills et al) – N200,000
- The cost for Start-up inventory (kerosene supply, drums, bottles and packaging materials et al) – N120,000
- Cost for store equipment (cash register, security, ventilation, signage) – N10,000
- Cost of purchase of distribution trucks – N450,000
- The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, Fax Machines, tables and chairs et al) – N15,000
- The cost of Launching a Website – N25,000
- The cost for our opening party – N10,000
- Miscellaneous – N10,000
We would need an estimate of N750,000 to successfully set up a standard and world class Kerosene. Please note that this amount includes the salaries of all the staff for the first 3 month of operation.
Generating Funding/Startup Capital for Mama Mabel Kerosene Ventures
No matter how fantastic your business idea might be, if you don’t have the required money to finance the business, the business might not become a reality. Finance is a very important factor when it comes to starting a business such as kerosene retailing business. No doubt raising start – up capital for a business might not come cheap, but it is a task that an entrepreneur must go through.
Mama Mabel Kerosene Ventures is a family business that is owned and financed by Mrs. Justina Graham – Douglas and her immediate family members. We do not intend to welcome any external business partners, which is why we have decided to restrict the sourcing of the start – up capital to 3 major sources.
These are the areas we intend generating our start – up capital;
- Generate part of the start – up capital from personal savings and sell of stocks
- Source for soft loans from family members and friends
- Apply for loan from my Bank
N.B: We have been able to generate about N250,000 (Personal savings N200,000 and soft loan from family members N50,000) and we are at the final stages of obtaining a loan facility of N500,000 from our bank. All the papers and document have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.
14. Sustainability and Expansion Strategy
The future of a business lies in the numbers of loyal customers that they have, the capacity and competence of the employees, their investment strategy and the business structure. If all of these factors are missing from a business (company), then it won’t be too long before the business close shop.
One of our major goals of starting Mama Mabel Kerosene Ventures is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running. We know that one of the ways of gaining approval and winning customers over is to retail our kerosene a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.
Mama Mabel Kerosene Ventures will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and re – training of our workforce is at the top burner.
As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.
Check List / Milestone
- Business Name Availability Check: Completed
- Business Registration: Completed
- Opening of Corporate Bank Accounts: Completed
- Securing Point of Sales (POS) Machines: Completed
- Opening Mobile Money Accounts: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Application for business license and permit: Completed
- Purchase of Insurance for the Business: Completed
- Leasing of a shop facility and renovating the facility as well: In Progress
- Conducting Feasibility Studies: Completed
- Generating capital from family members: Completed
- Applications for Loan from the bank: In Progress
- writing of business plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents and other relevant Legal Documents: In Progress
- Design of The Company’s Logo: Completed
- Graphic Designs and Printing of Packaging Marketing/Promotional Materials: In Progress
- Recruitment of employees: In Progress
- Purchase of the Needed furniture, racks, shelves, computers, electronic appliances, office appliances and CCTV: In progress
- Creating Official Website for the Company: In Progress
- Creating Awareness for the business both online and around the community: In Progress
- Health and Safety and Fire Safety Arrangement (License): Secured
- Opening party / launching party planning: In Progress
- Establishing business relationship with vendors – wholesale suppliers/merchants of kerosene: In Progress
- Purchase of delivery tanks: Completed
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