The demand for charcoal is very high now than ever especially in Nigeria. It is very easy to set up the business so flexible that you can start with little capital or as much as you can invest. Charcoal business is so easy and most likely may not require training before you can start. In this post we will give you a step-by-step guide on how to start, grow and earn. Before now using of charcoal to cook was relegated to the poor but the narratives have changed. Both middle class and low class use charcoal to cook thereby increasing the demand and opening opportunities for investors. There are so many innovative now, using charcoal to cook is as neat as using gas due to packaging.
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There are different ways to run charcoal business
- Exportation of charcoal: here you export charcoal to countries like UK, USA etc. You can buy directly from farmers or suppliers
- Local trader: this is selling of charcoal locally within Nigeria as a retailer in your location. You can buy directly from producers or suppliers.
- Supplier to sellers/exporters: buying from producers/farmers and sell to exporters. Some exporters can’t go round the different places to buy charcoal as such get from suppliers.
- Middleman: you can act as a middleman between producers and suppliers. You move round from one location to another; source and negotiate the price of charcoal. Your profit can come from both buyers and producers. They pay you on commission, some smart ones add money on top and sell for buyers and would have negotiated with the producer so that when they money is paid, the producer will give him, his dues. Just as it is done in other farm produce example oil palm business.
Charcoal business is one business you can add to any other business because it doesn’t consume time and space.
Guide on how to start Charcoal Business in Nigeria
1. Secure a space
Charcoal business doesn’t require large space, you can set it up in front of your house or open space you can find around you.
2. Location
Set up the business in a place that the demand is high, such places are; low-income earners settlement or middle-income earners. If you set it up in high class area where the residents can afford usage of gas then you are on your own. Within same location look for where sellers of charcoal are not many or non at all.
Identify a supplier
It will be wisdom to identify where you will be buying or who will be supplying you the charcoal consistently. When customers know that they will always get charcoal to buy from you then you already have a steady business. Your supplier should be someone who deals with quality charcoal so you can sell fast. If you are dealing with low quality charcoal, you will struggle to sell them.
Capital
Source for capital from family members and friends or you save money until it is enough to start.
Write a business plan
Every business requires a blue print for effective implementation. Write a business plan for your business. If you need charcoal business plan. Contact us on: 08155196689
Why you should do Charcoal business
- It is very easy: what you need is space, you don’t need a big space except where to stock the charcoal in case you are buying in large quantity. Weigh and put them in nylon according to the amount you want to sell them.
- Charcoal has high demand. The price of gas has gone up and many people are now considering charcoal as alternative source of fire. Charcoal demand has gone locally as large quantities are exported to different countries.
- The capital to start can be minimal. For retailers you can start with #100,000 or less. Suppliers need from 500k and above
- It is readily available, so it is a sustainable business
- Does not require certificate or training. Anybody can do the business.
- Not perishable
Where to source for Charcoal Locally in Nigeria
There are both few places in Nigeria where charcoal production take place.
Cross River State; Akampa, Odukpani and other local Government in Northern Cross River are major charcoal producers in Nigeria.
Edo State; Ughelli
Oyo State; Iseyin, Saki and Itesiwaju
Abuja; Agyana
Other places are; Plateau, Benue, Niger and Kaduna
Start-up capital for charcoal business
There is no specific amount to use in starting charcoal business, it can be as small as #50,000 or more. If you have enough money buy in large quantity in other to save time and money. And also make good profit.
How to start Charcoal Exportation business in Nigeria
There are many countries that import charcoal for different reasons but majorly as a source of fire for warmth and barbeque. Charcoal is also used as an additive for toothpaste production. Nigeria mainly exports to UK because they are ready buyers. Before you start ensure you have all the necessary papers so there won’t be any hitch. I have written a post on mini exportation business; you may have to read it to know what’s required.
Register with P2P market store to get buyers especially if you are a new entrant.
Is Charcoal business profitable
Yes, charcoal business is highly profitable. A sack of processed charcoal cost #8,000 while a sack of unprocessed charcoal cost #5,000.
The FOB of a ton of charcoal is $600 for hardwood while that of soft wood cost $170
These means whichever way you want to do charcoal business you are sure of not less than 30% profit.
Conclusion
Charcoal business is a good business idea to implement, very easy to start and highly profitable. Identify the closest producing site in your location and set up your business.
How do I start charcoal business to uk
You mean exporting to UK?
I want to start my business jute tree charcoal.