Do you want to leave your 8 to 5 job and make millions per month by starting a charcoal business? In this article, I will give you all the information needed to start charcoal business in your country.
In some countries the demand for charcoal is high due to the price of cooking gas. A lot of countries in Africa depend on charcoal once their is an increase in the price of cooking gas.
Charcoal business is not easy to run because it requires a lot of resources especially if you decide to be the supplier of charcoal in the country. There are a lot of ways you can a charcoal business in your country, everything depends on your capability and resources.
The different ways to run charcoal business
The following are the different ways you can run charcoal business:
- Exportation of charcoal: you can decide to export charcoal to other countries like France, South Africa, UK, USA etc. You can buy directly from farmers, suppliers or be a supplier yourself.
- Local trader: this involves selling of charcoal locally within your country as a retailer in your location. You can buy directly from producers or suppliers.
- Supplier to sellers or exporters: As I have said earlier, you can manufacture charcoal yourself if you have all resources needed and supply to sellers or exporters in your country
- Middleman: you can act as a middleman between the producer and retailers or between the producer and consumers of charcoal.
Charcoal business is one business you can add to any other business because it doesn’t consume time and space once you have everything set up.
Now that you have known the several ways you can run a charcoal business, let us look into how to start charcoal business in the country.
How to start charcoal business in the country?
This guide below is to show you how to start charcoal business in the country, read through the end so that you won’t miss any important detail.
- Do your research
- Create a business plan
- Get a supplier if you decide not to be the supplier
- Get a storage space or warehouse
- Locate your consumer
- Market or advertise your business
- Run your business
1. Do your research
Before you start charcoal business, you need to perform a market research on how the business is progressing, the strategies other sellers are using, their drawbacks or errors etc., so that you can be on top of the charcoal business in the country.
Market research won’t cost you anything except your time and that time will prove to be well spent when the business starts and the successes starts coming in. It is important to do a thorough investigation about the business since you’re going to be investing your money into it and you’ve never been involved in the business. Some hours of research won’t hurt.
The research is always meant to give you an idea of what to expect and the challenges ahead to be faced and how to overcome those challenges. Meet experts in the business, look for advise from these individuals as they are most likely the best bet for reliable information on how to run the charcoal business. Take note of even the smallest details during the research period and pay close attention to how to stay and survive in the business. The research is as important as anything in the business.
2. Create a business plan
Once you have done your market research, a business plan needs to be create. A business without a strategic plan is bound to go upside down. Your charcoal business plan will cover things like the way you plan to operate the business, the cost of business, how you plan to market your business, future projections as well as contingency plans.
Once a business plan has been developed, you need to start thinking about how to fund your business either by sourcing it yourself (through personal funds, crowd-funding or donations) or by reaching out to investors.
4. Get a supplier if you decide not to be the supplier
In case you don’t want to be the manufacturer of charcoal, you can simply get a charcoal supplier that will be selling it to you at a wholesale price so that you can distribute it and make your profit. However, in case you plan on producing yours and be a distributor, you will need log of wood or bamboo (wood gotten from forest).
Break the wood into smaller pieces and bury them under the earth before burning it. The wood must be burnt with no air passage entering it.
As you can see in the image above the wood is being burnt under the heap of sand with no passage for air to enter. The reason is because once air enters the wood will turn to ash and not charcoal.
Ensure you do this in a place far from residential areas. However, if you can undergo all this process, you can get a legit direct manufacturer of charcoal.
5. Get a storage space or warehouse
You will need a warehouse to store your charcoal for distribution or sale as the case may be.
6. Locate your consumer
Once you have gotten your charcoal ready, you will need to sell it. Getting a consumer or a retailer is necessary. In case you are finding it difficult get a consumer or retailer to buy your charcoal, the next step is for you.
7. Market or advertise your charcoal business
If you are finding it difficult to get people to buy your product, you will need to advertise your charcoal business to people, start advertising to your family and friends. Then you can go extra mile by distributing posters or banners about your charcoal business. You can also share your business to people on social media like Facebook, Twitter, etc.
8. Run your business
At this stage, you can start running your charcoal business, so far you have everything (including people that will purchase it) in place. Ensure you have financial statement. Separate your capital from the profit so that you won’t run at a loss.
Why you should start Charcoal business
The following are the reasons why you should start charcoal business in your country:
- It is very easy to commence.
- Charcoal business is profitable
- Charcoal has high demand due to the high price of cooking gas.
- Minimal capital is needed to start the business.
- It is readily available which makes it a sustainable business.
- Charcoal is not perishable.
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Is charcoal business profitable?
Yes, charcoal business is a profitable one. However, you need to be smart when running a charcoal business so that you won’t be at a loss. Charcoal business is profitable if you also decide to export it to other countries or sell it within your country.
Conclusion on how to start charcoal business
If you are planning to know how to start charcoal business in your country and leave that 8 to 5 job of yours then I hope this article worth it? Yes, I know this article worth it. Charcoal business is a profitable and lucrative business if you take the business serious. If you have any question or addition, feel free to make use of the comment box below or contact us.