Fuel Tanker Business: Here I present to you A Step by step guide on How to Start Fuel Tanker Business in Nigeria.
One of the most lucrative businesses in Nigeria is the fuel tanker business.
But majority of people avoid going into it as it is capital intensive and risky
Are you willing to learn how to set up your own fuel tanker business from scratch?
Are you in need of a sample business plan or feasibility report of a fuel tanker business?
If yes, then I implore you to read on.
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Fuel Tanker Business
Beginning a fuel tanker business has been a thought that have been crossing my mind for quite a while.
In case you are an entrepreneur or a truck driver, I’m quite sure this must have crossed your mind too.
Before I dabble into the write up proper.
I need to say that all over the world, fuel tanker businesses are basically and technically similar.
While this article will be based on Nigeria, the lessons/facts obtained can be applied in any other country; regardless of whether in the United States, Canada, India, Australia, U.K, and so on.
The way things are, the fuel tanker industry is one of the greatest businesses on the planet.
Truth be told, in the United States alone, the fuel tanker industry delivers more than 300 billion dollars income a year.
In Nigeria, fuel tanker business is a billion-Naira business with a voracious market.
This is on the grounds that moving product over long distances has turned into an important industry.
Regardless of the industry you are into, you should transport mass products back and forth (both raw and processed product).
That makes the fuel tanker business an extremely lucrative one.
source: https://www.equipmenttrader.com Industrial-Equipment/Fuel-Truck
Beginning a Fuel Tanker Business – Sample Business Plan Template
Having read this, if you are now interested in getting to know how to start a fuel tanker business,.
I can tell you this is the right place to be.
I will be sharing a few tips that will make you a success in this line of business.
It seems your journey to beginning a fuel tanker business starts here.
Before going into the details of starting a fuel tanker business.
I need to assert that the data given in this article does not at all replace the need to carry out a feasibility report.
You need to write your business plan for your business.
Related: How to Start Fuel Importation Business in Nigeria
Here is an example of business plan template you can use as a guide.
Capital-: Yes, the primary thing that ought to be considered is your startup capital.
To start with, you must be sure this is the thing that you truly need to do.
In some cases, it’s not in your best interest to go into a business for the cash alone.
Energy for the sort of business that you are doing would help you to adapt to the difficulties and drive you to success.
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Fuel Tanker Business
Fuel tanker is lucrative though it is fraught with a lot of risks and dangers.
To run this business successfully, you need to have a strong mind be determined.
You should be wary of criminal minded drivers, dishonest automobile technician, accidents and other challenges that may come up at one point or the other in the business.
Plan and Study Your Fuel Tanker Business Properly
There are questions you must provide answers to before dabbling into your own fuel tanker business.
Since you choice is petrol for example, you need to get a petroleum tanker.
You also need to have your name registered with an oil company or work with an already established company as sub-contractor.
On the other hand, if your plan is to go into transporting building materials like sand, cement and granite to construction sites. All you need is a lorry or tipper.
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Fuel Tanker Business
Start-up Capital For Fuel Tanker Business
In starting your fuel tanker business, the next thing you will need is definitely start-up capital.
The business is capital intensive; hence you need a lot of it.
The amount of trucks you will acquire will depend on your startup capital.
It is therefore necessary to have a business plan.
This will give you an accurate idea of the amount of money to start the business.
This will enable you look into savings to see if you can afford it.
Will you purchase brand new or used trucks?
Acquiring trucks can be of two ways; you can either out rightly purchase them or you acquire them on lease.
Another alternative is to search for subcontractors.
While the startup capital seems large, through proper management decision.
You can get returns on your investment in a short period of time.
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Fuel Tanker Business
You may also consider other financing option if you do not have enough capital to start.
In this case, consider your credit worthiness, eligibility to borrow and the availability of collateral security.
You also need to consider the interest rate on the loan and compare it with your expected income from the business.
This is to be sure you are making profit by paying such interest.
Fuel Tanker Business
Master the rules and regulations guiding the Fuel Tanker Business
The legal obligations to be fulfilled before starting a fuel tanker business should also be given due consideration.
You would need to get different permits and licenses.
On getting this, you would be presented with rules and regulation to be adhered to in the business.
You ought to do a broad research on what these rules are and guarantee that you adhere to them.
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Fuel Tanker Business
Get Appropriate Fuel Tanker Business Insurance Cover
Fuel tanker business is fraught with lots of dangers.
In the course of the business, you would have to convey expensive good.
This often would not belong to you and would have to be delivered safely to its destination.
Considering the long distances involved, it is difficult to envisage what would happen along the way.
It may be accident, theft; the driver may also not be honest and divert goods elsewhere.
Any of these would lead to debts of monumental proportion to the company.
It is therefore important to obtain insurance cover for your business.
In doing this, you take into consideration cost of obtaining the insurance cover and premiums to be paid.
This should be compared with projected earnings to determine the business viability.
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Fuel Tanker Business
Work out your management startegy
The management strategy towards handling customers and payload is also a very important consideration.
To run your fuel tanker business properly, it is important to have a good management team.
If you are not so conversant with the business, you may employ someone who is experienced as the manager.
He/she will be in charge of the everyday running of the business.
You must have a management team highly experienced in the transport industry particularly the fuel tanker business.
The financial transaction keeping ability of your team is also very important.
This can be more efficiently achieved through the use of appropriate software.
You may also decide to sub-contract the management of your company to fleet management companies. This would be at an agreed sum.
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Fuel Tanker Business
Recruit Employees
This is also very important.
In the first place, you need to consider the drivers since they are the life wires of fuel tanker businesses.
Your driver can make or break your business.
Consequently, it is important to first consider how and where to get professional drivers.
Who would be keen on working with you to move the business forward.
You also need to consider the administrative and marketing staff.
If you are starting on a small scale, then you may be able to handle both alone.
However for a large scale business, there is need to recruit staffs to carry out the administrative and clerical duties of the business.
It also includes marketing of the business.
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Fuel Tanker Business
Know your customer and provide quick, reliable service expeditious, solid service
You must very much aware of who your customers would.
What they would need and how to get in touch with them.
In the first instance you need to carve out a niche for yourself.
This is followed by getting a list of prospective customers/clients in that niche.
You then get a means of getting in touch with them.
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However, before all these, you have to put in place a good marketing plan for your business.
Also, you ought to likewise consider approaches to beat your rivals and brand your business.
This is with the goal that it can positively differentiate itself from others in the industry.
Regardless of how enormous or little your business is.
Your outlook is important, so don’t disregard improving your image and brand.
Introduce your services, the cost of giving the services, and other added benefits they stand to gain dealing with you.
When you finally get them to patronize you, provide them with quality reliable service.
This will make them keep coming back for more.
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Fuel Tanker Business
Work out your Contractual modalities
You would have some management companies to manage your truck for you.
This is depending on the agreement you have with them.
You can employ a driver and a technician to do all the repairs for you.
All you just need to do is go to their office and collect your income at the end of the month.
A truck can comfortably make up to N500, 000 to N600, 000/month.
Deducting all the expenses as listed above leaves the truck owner with about N350, 000 to N400, 000 per month.
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Fuel Tanker Business: Maintenance
When the need arises for maintenance, you would need to put in place proper maintenance services to put in the truck back in order. You would require a good technician to handle repairs of your trucks.
This is particularly important because proper and timely maintenance and servicing prolong the life of your trucks.
You ought to check out you for automobile repair organizations or experts who can handle repairs of your vehicles.
They must be able and willing to provide 24/7 services.
They also must be willing to travel long distances in case your vehicle break down on a journey.
If your company has a lot of trucks.
It would be cost-effective to have an in-house technician for your repairs.
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If you need a complete business plan, please let us know.
Or, you want us to help you set up this business, kindly contact us.
Otherwise, Please check out these other business ideas you can do.
I need a complete business plan for fuel tanker business