How to Start a Diesel Business
Do you need help starting a diesel supply business? Trading in fuel, which ever kind you decide to pick as a trade will always be lucrative as a business, this is because there is always a demand for one purpose or the other and this demand is what makes it a good business to venture into because there is certainty in its success.
SEE: 10 Oil And Gas Business Ideas And Investment Opportunities
First, to begin this business you need a very comprehensive diesel supply business plan that makes allowance for functional publicity which will cut across all prospective clients even before you open or start your business officially, this is to help you build a chain of clients.
I always say that the best means to get clients is by getting in touch with people on your phone list that will need the service/commodity that you render or have, tell them about the business you just started and how you are hoping that they would be your first customers.
Diesel is an essential commodity and is at the top of the oil and gas sector in terms of usage and it also has the biggest share in the industry in the world today, this is why it is a key player in the automobile industry.
This is one industry that generates a lot of money on a daily basis through distribution and marketing. Despite the fact that a lot of people venture into this business daily, there is still room for more diesel suppliers because the human need for it increases on a daily basis.
Just like any business, you need money to begin, but this business is quite capital intensive, it is a business that requires that you have physical cash and also one were your turnover is your capacity.
As a supplier in this business in the UAE and the Middle East, there are various entry points that are available but this is greatly determined by the capital you have at hand. An idea of a sector of the diesel business you could venture into is getting involved in a door to door diesel business. This business requires that you have a dispensing truck which is quite expensive to either buy or even rent, you dispense diesel to people at their homes, offices etc.
You will also need to also get a meter truck which will help you to count the volume of what to dispense and enable you give accurate and quality services to your customer. This truck will also help carry products that you buy from the depot. The only problem with this is the start up cost implication.
That is why I mentioned earlier that this sector is capital intensive. In a situation where you do not have a huge capital, you could still go into the diesel business in Abuja and other industrialized areas of Nigeria, and this I think is an upside and can be used as such.
An example of how this can work is, you can decide to play in the industry without money, all you have to do is become an independent supplier, and you can run your business by going to companies and organizations that have need for diesel. Then contact those who have the truck or those who already supply diesel and also negotiate with them on how much they intend to sell and then you can create your client list and prospect customers.
You build up your business by engaging in intense marketing of the product to companies and individuals that have the need for diesel and you could also make use of the list that you have created to achieve effective results.
In every business venture, it is mandatory to have a target market to help your business grow. The diesel business is not left out, and you need to have a line of customers who you know would be good customers.
You should focus mainly on schools, churches, mosques, hospitals etc. dwelling mainly on places where there is high use of diesel and you’re sure to get paid on delivery or where you know your money will not be held by your clients. (This is not only for those who do not have a huge capital to start a diesel business.)
But if you really want to start big and have huge capital then your workload is reduced and your profits will be increased a great deal.
On the decision to go into the diesel business in South Africa and other African countries, you can decide to check out the bio-diesel opportunities to help you understand and weigh your options to know if you would be able to go on this business.
GUIDE: How To Enter Oil And Gas Business In The Middle East
Diesel happens to be an eligible fuel and the government has helped by creating a reduction on tax programs hence you stand to benefit a lot. A license from the environmental agencies is not necessary because diesel does not have any chemical component that could cause human hazard.
Hope this post gives you insight on starting a diesel business, Success!