How To Start A Charcoal Exporting Business In Nigeria
Charcoal can form a hub of your business. It can be the thing that makes you and your family very rich. This is a fact pending on your approach. One way you can approach charcoal business is to start a charcoal exporting business in Nigeria.
Let us try to analyze the potentials of this business. I know in your mind right now, you will probably be laughing at the possibility of making it or not. You are definitely not wrong because the information and exposure you had may be quite limited. Don’t worry; it is all about to change.
You see, we live in a dynamic world. Things don’t stay same all the time. The world energy sector is filled with so many opportunities given the gradual shift from the mass distribution of oil products.
Some are going for better and even more costly alternatives while others opt for cheaper alternatives. This is a case of the distinction between the haves and the have-nots according to Marxian philosophy.
One of those cheaper alternatives is charcoal and it is used for quite a handful of things. This has made it possible to start a charcoal exporting business in Nigeria.
When you start a charcoal exporting business here in Nigeria, you can export to many African countries.
Here, you have no business with the production except you want to become part of the process and you could make more money from doing both. Other than that, you can just buy from people and sell to others.
Just for emphasis, charcoal is a pure carbon also called char, that is made by cooking wood in a low oxygen setting, which is a process that can take several days to burn off volatile compounds like water, methane, hydrogen, and tar.
Facts About Charcoal Export
In case you still doubt the potentials of having to start a charcoal business, the following facts should convince you of its potentials.
- The international selling price of charcoal is anywhere from $200 to $600 per ton.
- Charcoal is used in some kinds of toothpaste.
- Charcoal is sometimes used in cosmetics.
- Charcoal is a great exportable product from Nigeria.
- Charcoal is used for cooking food in various forms.
- The profit margins on the sale of Charcoal to international buyers can be anywhere from 30% to over 100% depending on if you’re the producer, are buying from the direct source, and the final price agreed to with the buyer.
- As a broker, you can venture into this business with $0.
- Nigeria is estimated to have limitless access to charcoal because of its widespread forest areas.
- There are large volumes of charcoal for purchase in Nasarawa, Kaduna, Jos, Minna, Egbe, Jebba, Oyo, and several other states in Nigeria.
- Charcoal prices are calculated in metric tonnes.
- Charcoal is made in a process called carbonization.
Guide On How To Start A Charcoal Exporting Business
Research the business
When you want to start a charcoal exporting business, the first thing to do is to carry out a thorough research on the business. You will need to find out all you can about the business. What we have here is enough to keep you going but you will need to find out more things about the business.
There is always the need to put up a business plan for your business. To start a charcoal exporting business, you will need to put up a business plan so as to enable you to understand the requirements for starting and running your business.
Your business plan will guide your understanding and control of your finances and cash flow, your personnel management, your infrastructure and other necessary requirements for your business.
Register Your Export Business
To be able to operate a business in Nigeria without any issue, you will have to register the business with proper authorities. All you need to do is to register a limited liability company with the Corporate Affairs Commission of Nigeria and then proceed to register with the Nigerian Export Promotion Council.
Find Sources And Producers For Exports
After registration or even before registration, you will need to secure sources for your products or there is no business.
For ease of access and for economic reasons, you will be better off with dealing with direct sources. Go to direct producers of charcoal and you will be better off. The proxy method could waste more time and could cost more money.
Setup A Proper Business Structure
Every business survives on the right structure. Without the right structure, your charcoal business will not stand. Therefore, you must necessarily find a way to put up a good structure. It has to look internationally reputable for people to do business with you. It is that simple.
You can do this by building a website that is of international standard, create a company profile, have a corporate offer format you can send to buyers and set up a corporate email.
The above things and more can make you reputable in the international community so as to draw buyers and customers to you.
Look for buyers
This is the process of advertising and marketing your business. It will be in your best interest to use all the means available to you when looking for buyers.
You can source for buyers on the social media and through other online sources and you can also use other offline sources.
Export Your Products
When you have sealed the necessary agreements with buyers, issued an Irrevocable Corporate Purchase Order and signed Sales and Purchasing agreement, then you can proceed to ship or export the product to the buyers.
According to startuptips.com, “The shipment could be done on either Free On Board (FOB) or Cost, Insurance and Freight (CIF) basis. Where FOB means you cover the cost of the goods and every other thing till its arrival at the shipping point, and CIF means that you cover the cost of everything including insurance and transporting the goods to the buyer’s port of destination. “