In Nigeria today, small businesses are the most sought-after endeavors as unemployment rates sky rocket with the glaring lack of jobs, and even those with jobs losing out as companies and industries seek to cut down on costs.
One business where the common man can look to get into is the Cooking gas retail business. Anyone can run a business as this one successfully, wether literate or not. Basic understanding of business; buying and selling, is what’s needed, and not a degree.
What do I Need to Start a Cooking Gas Business
To start the cooking gas retail business in Nigeria, you will need a good location, your start up capital, and basic knowledge of the industry, which we will be trying our best to give you a detailed breakdown of.
How to Get a Good Location for your Cooking Gas Business
Just like every business, a good location is key, because no matter he investments you make, if you aren’t doing it before the right people, you’re investing wrongly.
So how do I decide the right place to start my cooking gas business? first of all, the advantage here is that practically every street and roads in the urban areas of Nigeria, there are gas users. Indeed for some time now, the gas cylinder has overtaken the kerosene stove which once upon a time used to be the number one when it comes to cooking.
With this high in demand, finding a location for your business shouldn’t be hard.
- Check if there are other Gas Sellers around: It would be better if you were the only seller in the street, being the only seller in at least a 200meter radius from your potential shop, would mean you almost certainly will be the go-to gas seller of the neighborhood.
- Survey the neighborhood to Understand their cost of Living: It would be wise to take a walk around the place, ask a few residents some casual questions in a bid to have a rough guess at he standard of living of the neighborhood. This will help you know if the neighborhood are of a good enough standard of living to operate your business in. As a saying goes, a business is only as rich as it’s consumers and customers.
- Standard Infrastructure: Make sure wherever you decide to run your business in has standard Infrastructures such as good roads to aid transportation of your products, and electricity which is pertinent in practically every business.
- Proximity to Supplier: This is one factor many people don’t consider but proximity to supplier is as important as can be. The profit margin in the gas retail business is relatively modest, and you wouldn’t want to be spending a vast chunk of that I’m transportation of the product in question.
Pros and Cons of Running a Cooking Gas Business
- It is non-perishable so you don’t sell in a hurry.
- It is an essential commodity so people will always buy and returning users are certain.
- You can also sell gas cylinders and it’s accessories to your customers base. Extra income.
- The Price is usually unstable and can lead of running in loss if not carefully managed
- The risk of hazards and accidents in business place is higher than in most other business.
How much do I need to Start a Cooking Gas Business
The cost of starting a cooking gas business may vary depending on the size of the business you’re looking to run.
but with a modest #200,000, you can start your cooking gas business.
Getting a shop space inside streets in Nigeria are usually a lot less expensive, so with a modest sum, you can get your business going.
Just like in every business, there are pros and cons, but the cooking gas business is definitely worth giving a try.
The cooking gas business is relatively cheap to start, and profitable with the product being an essential in the life of many today.