Do you want to start a charcoal making company from scratch? Or you need a sample charcoal production business plan template? If YES, then i advice you read on. There have always been need for charcoal since time immemorial; and the demand of charcoal is still very high in the market these days especially for those residing in the temperate region. You can start a profitable business of making charcoal and supplying to the market in commercial quantity.
This article will discuss first, why you anybody can start a charcoal making business and secondly how you can start and successfully run a charcoal production business. But first, you need to understand that you need a charcoal production business plan.
3 Reasons Why You Should Start a Charcoal Making Business
Table of Content
There Is Profitability In The Business
Unlike some other businesses that you need to run for a month or even a few years before you start seeing profits, you can start a charcoal making business and start making profits almost immediately; this is because of the high demand for charcoal product. Also, you get to make sales all year long especially during the winter, because charcoal making business is not a seasonal business.
Easy to Start
You don’t need to undergo some intensive training to start this business; a basic knowledge of how to burn a wood to become charcoal is all you need to start this business.
Availability of the Basic Raw Material
The basic raw material that is needed to start a charcoal making business is wood; and depending on the type of wood you need, there are enough supplies of wood all year around. Also, the business is not capital intensive; you can start on a small scale with a small capital and grow the business into a bigger business venture.
Starting a Charcoal Making Company – Sample Business Plan Template
1. Learn How to Make the Best Charcoals
Striving to offer the best products or services will endear you to the hearts of your customers. In this charcoal making business, it is advised that you learn how to make the best type of charcoal; that is a charcoal that does not bring out smoke, lasts a little longer and the best charcoal required to produce such.
The best way to get this knowledge is to have a few months internship in a charcoal making company; or consulting someone who has worked in such a firm for a fee.
2. Set up Your Fire Chambers
A fire chamber is where the wood will be burnt to become charcoal. If you have a large ground space in your property, you can build a medium sized fire chamber there. But whatever location you wish to set up the fire chamber, you must ensure that the fire chamber is flame proof.
Also, you must note that fact that the size of your fire chamber will be determined by the size of output you need to make everyday. It is possible to build more than one fire chambers if you have the need to increase the quantity of charcoal you produce daily.
3. Have a Store House in Place
A store house will serve as a warehouse where the charcoal will be kept to cool off and packaged into sacks. The store house has to be spacious and airy to avoid damp or moisture which can make the charcoal harder to light, and trust me when I say that nobody needs a charcoal they have to light many times before it catches a flame, all because the charcoal is damp.
4. Source for Wood
I mentioned earlier on this article that wood is the major raw material needed to make charcoal. There are many types of wood, example is the oak wood, cherry wood, hockery wood, etc. Now you must understand that the type of wood you use will determine the type of charcoal that it will produce.
So you need to make a choice of wood, find suppliers, and make a contract with them to supply you with large quantity of wood at a reduces price regularly. The best bet you have for a wood supplier is contractors that have license to cut down big trees in forests.
5. The Process of Charcoal Production
The actual process of turning wood into fire wood requires a bonfire; that is placing bulk quantity of wood into the fire chamber and placing it under intensive firing for three to five hours.
After the bonfire, you can allow the charcoal to cool off in the fire chamber or you can evacuate it into the store room for it to cool off and packed in sacks. The sack should be branded with the name and contact address of your business as an advert.
6. Source for Buyers
The major patronage you will receive in this business will be coming from bakeries that still make use of charcoal ovens; hotels for their fireplace and private individuals during the winter period to light their fireplace, stores household wares.
You can reach across to them by sending them few quantity of charcoal as a sample with a message that there are more goods from where the sample is coming from and that you can supply them any quantity they need at a very cheap rate.
Another place you can get better buyers for your charcoal is by selling in an online marketplace; I went through the Alibaba.com and saw charcoal manufacturers from around the world list their charcoal product for sale in bulk quantity there.
With the huge traffic of people visiting the site to order for products in large quantities from manufacturers and wholesalers, you are sure to land one or two regular buyers that will order in large quantity from your company.
The only issue you may encounter here is finding a way to ship out to people in another country or even continent and still make profits. The solution is to strike a deal with an international logistics company to transport you product to any location around the world.
So far, I have been able to cover why it is easy for anybody to start a charcoal making business and the steps you need to take to set up your own business. Finally, if you wish to sell on a site like Alibaba.com, you may have to register your business as a company, to make it look more authentic to buyers.