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How to Start Charcoal Business

How to Start Charcoal Business : Introduction: Charcoal is a very good source of fuel for households and industries and its usage has trailed the existence of man, from time immemorial.

Charcoal comes from partially or incomplete combustion of carbon derived from wood. Going traditionally, you can get Charcoal by burning certain types of trees, under a controlled environment using a small supply of oxygen (air) in some cases, and to a large extent, depending on the producer, under a predetermined time frame.

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Majority of the wood used to produce Charcoal are derived from trees generally described as “hardwoods”, which exist, in large quantities, in the North-Central parts of Nigeria. The demand for Charcoal as a source of fuel has continue to rise over the years here in Nigeria. The following has been advocated to give rise to this: Charcoal is cheaper to afford as compared with other domestic fuels such as cooking gas or even Kerosene.

  1. Also, Charcoal, when compared with Kerosene cooks faster.
  2. Aside from this, Charcoal does not leave black carbon soot on the back of pots
  3. Traditionally, certain kinds of meals are best prepared with Charcoal.
  4. Charcoal can be sourced locally using simple processes, unlike cooking gas or even Kerosene.

In big cities, such as Kano, Port Harcourt, Lagos and Abuja, Charcoal has continually found a large market and thrives very well. Undoubted, settlers in these cities have a high affinity for roasted foods such as roasted corn, plantain, fish as well as other kinds of barbecues. Foreigners in these cities and towns also find Charcoal quite useful as they use it to prepare most of their native delicacies.

A Business Opportunity in trading Charcoal

There is a vast business opportunity in trading Charcoal, since its high demand notwithstanding, there still exists limited availability of the product in the country, especially in the towns and cities. The profound reason is that production of Charcoal in these cities is almost impossible.

Since there are no trees to hew down and convert to charcoal in the cities, it therefore means that a large bulk of the charcoal there are sourced locally from the suburbs. A smart look at this means that if you can get down to the rural areas and get the Charcoal, you can make good money by selling it to the city dwellers.

The most effective method to Buy and Sell Charcoal to make Money

Below are the required steps to consider before embarking on starting charcoal business:

  1. Locate Interested Buyers. You can Visiting hotels to know whether they need charcoal. You can likewise visit shopping centers and enormous stores to find out how you can be their charcoal supplier. Moreover, you can visit restaurants including the foreign ones, for example, Italian and Chinese restaurants to determine their charcoal needs.
  2. Get a stand or shop in the market where you can offload and sell directly to customers.
  3. Carry out general marketing of your business.
  4. Locate areas where corn, plantain and fish are roasted and inquire as to whether you could supply them with charcoal.
  5. Package your product in little sizes properly sealed because of its dirtying nature and need to keep far from moisture.

Who can do this business?

Government workers, students, young people, school leavers, bankers, investors, supply-chain managers, people in paid employment, retirees, entrepreneurs, anyone interested in achieving a financial break through by establishing a successful business.

Storage

Charcoal is a fuel and so ought to be stored far from any form of moisture or other fuels and anything that can ignite it.

Business dangers

Business is a hazard they say; all businesses have chances however the capacity to identify them and dodge the ones that need to be avoided or take calculated dangers makes one successful. Here are some identified dangers:

  1. Be careful not to be scammed at all.
  2. Make sure the charcoal is of good quality with a high carbon content, from a decent type of hardwood and is properly prepared.
  3. Please don’t make any exchanges over the Internet or phone, basically visit the sellers or producers to make your purchase.

Security and safety tips.

Avoid traveling around evening time however much as could be expected.

  1. Don’t travel with cash other than that needed for the exchange.
  2. These days, hotels are available everywhere in the nation. Where possible, attempt to make payments inside the banking corridor.
  3. There are banks everywhere checkout a directory of banks in Nigeria online.

Basic Guidelines to Start Charcoal Business 

This business in outline is about buying, transporting and selling of charcoal. A trader purchases the charcoal from rustic areas close to Cities, make’s arrangements to transport them to the City where he/she sells to customers. The fundamental steps to carryout the business are:

How to Start Charcoal Business

  1. Making inquiries on where to purchase, preferably rustic areas within a 200 km sweep form the City. This can be carried out by making a visit to those areas and making necessary inquiries. In the event that you are in Abuja and need to do this business, Nasarawa a town located approximately 55 km from Abuja ought to be the opportune place to purchase.
  1. Making inquiries from the producers/sellers to know the appropriate time to purchase.
  1. Making available sufficient startup capital. The sellers don’t sell on credit and in all likelihood you will be buying from numerous sellers to make up the aggregate amount you require. It is a cash n convey exchange.
  1. Scouting for quality and cheap charcoal to purchase. By eye inspection, you can choose the ones which are lighter in shading because they have a higher carbon content. Likewise knowledge of the type of tree it was prepared from is additionally very important.
  1. Making payments is not as a rule a problem because a great deal of money is not ordinarily involved in this business so payments can be made on the spot immediately after purchase.
  1. Making arrangements for transporting the charcoal involves hiring a suitable truck or pickup from the nearest location to the point of purchase. The greater part of the sellers are located along the significant streets so it is easy to get the sacks of charcoal as you drive along.
  1. Supplying to customers who have earlier registered their interest.
  2. Store far from water.

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