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How To Start A Cooking Gas Distribution Company - Sample Business Plan Template

Quick Gas Limited plans to start an LPG (liquefied petroleum gas) distribution business in Kasulu District, Tanzania. The business will obtain licenses to distribute cooking gas in cylinders to households, industries, and commercial customers. Products and services will include gas cylinders in various sizes, cookers, fittings, installation, and home delivery. While competition has increased, the business sees opportunity for growth given rising gas consumption in Tanzania and government support for LPG use. Financial projections estimate the business can be profitable and recover investments within three years of operation by effectively marketing, maintaining close customer relationships, and providing additional services.

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Khurshid Alam
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100% found this document useful (1 vote)
702 views15 pages

How To Start A Cooking Gas Distribution Company - Sample Business Plan Template

Quick Gas Limited plans to start an LPG (liquefied petroleum gas) distribution business in Kasulu District, Tanzania. The business will obtain licenses to distribute cooking gas in cylinders to households, industries, and commercial customers. Products and services will include gas cylinders in various sizes, cookers, fittings, installation, and home delivery. While competition has increased, the business sees opportunity for growth given rising gas consumption in Tanzania and government support for LPG use. Financial projections estimate the business can be profitable and recover investments within three years of operation by effectively marketing, maintaining close customer relationships, and providing additional services.

Uploaded by

Khurshid Alam
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 15

How to Start a Cooking Gas

Distribution Company – Sample


Business Plan Template
Do you want to start a cooking gas company from scratch?
Or you need a sample cooking gas distribution business plan
template? If YES, then i advice you read on. Indeed some
businesses require a fewer level struggle to market and a
business that deals in essential commodities is one of them.
If you desire to start your own business and you are scared of
taking the bold step to go ahead and setup the business simply
because you are afraid of the hard task involved in making your
business known by all and sundry, then you need to look at
starting a business that deals with essential commodities or
services.
One of the businesses that deal with essential commodities that
you can comfortably start and make huge profit within few months
of starting from, is the cooking gas supply business. Cooking gas
is an essential commodity in most households. Therefore, if you
live in a city where the distribution of cooking gas is not a
government affair, then you can consider starting your own
cooking gas distribution business.
Aside from few countries cum cities in the world where cooking
gas can be directly distributed into apartments via already
installed pipe lines, the usual practice is that people get their gas
cylinder refilled by a retailer that deals in the distribution of
cooking gas.
The startup capital required to successfully start a cooking gas
distribution business varies from city to city and from country to
country- but on the average, it is not expensive to start a cooking
gas distribution business. What is more, the business is highly
profitable.
Now let us consider the steps to follow if you intend starting your
own cooking gas distribution business from the scratch in your
city;

Starting a Cooking Gas Distribution Company


– Sample Business Plan Template
Table of Content [show]

1. Feasibility Studies and Market Survey is required


First things first; if you want to build a successful business as an
entrepreneur, then you should spend time and resources in
conducting thorough feasibility study and market survey.
The report you derive from your feasibility study helps you to
locate the most suitable locations to setup your business, the kind
of trainings that you would need to be able to effectively manage
the business, an estimated cost of the startup capital that you
would need, your likely competitions and all you would need to
setup and manage the business with. Your feasibility study should
expose your strengths, your weakness, your opportunities and the
threat you stand to face in the industry.
2. Draw up a Good Business Plan
The role of a good business plan in any startup business cannot
be relegated to the background. Your business plan is not just a
business tool that gives your business direction, but also a
business tool that helps you access funding for your business.
One of the vital documents that will be required of you when you
approach any bank for loan or when you want to seek an investor
to invest in your business is your business plan. You don’t
necessarily need to write a world class business plan if you want
to start a cooking gas distribution business, but the bottom line is
that you must ensure that you have a business plan in place
before launching your business.
3. Raise Your Start – up Capital
With less than $5,000, you can successfully start your own
cooking gas distribution business in any part of the world. Before
going out there to raise the startup capital for your business,
ensure that you have done a proper marketing survey and
feasibility study to know the amount that you would need to setup
a gas distribution business in your city. In case you don’t have the
required startup capital saved up somewhere, you can approach
your bank for loan, you can approach investors and you can as
well raise the money from your family members and friends.
4. Register a Business Name
There are no restrictions to the caliber of clients that you are likely
going to attract when you start your cooking gas distribution
business. The way you can put a restriction to how big you want
to grow your business is by not considering to get your business
registered.
Aside from the fact that you are expected to supply cooking gas to
homes, you can also supply cooking gas to hotels, schools, clubs,
restaurants and corporate organizations that run their own guest
houses. Most of these clients would not want to do business with
you when they realize that your business is not registered. So,
ensure that you choose a business name for your cooking gas
business, and get it legally registered with the corporate affairs
commissions of your country.
5. Rent an Office Facility
One of the best locations to setup a cooking gas distribution
business is in and around residential areas. The rule of thumb is
to ensure that your shop / office is visible enough for people to
notice. You can talk to your realtor to help you get affordable
facility that will meet your business needs and budget.
6. Purchase the Needed Equipment and Business
Tools
Some of the things that you would need if you want to start a
cooking gas distribution business are empty gas cylinders, rubber
gas pipes, gas regulators, weighing machine and delivery van.
You are also expected to make provisions for the purchase and
installation of fire and safety gadgets in your shop / office.
7. Market Your Business and Map out Distribution
Channels
If you are able to secure a good location for your business, you
will struggle less to market your products. What you need to do if
you want to market your cooking gas distribution business is to
print handbills and adopt the door to door approach in distributing
the handbills. You can also attend tenants and landlord
association meetings to market your business.
One of the approaches you can adopt if you have competitors in
the community where your cooking gas distribution business is
located is to offer a free pickup and delivery services to your
clients. Ensure that you create a database for your customers and
then map out your distribution channels.
There you have it; the steps to follow if you want to start a cooking
gas distribution business.
An LP Gas (cooking) gas is the lucrative business opportunity in Tanzania
and Africa that they need strategic planning to start.
With good marketing strategies and sufficient capital, new entrepreneurs
can build an LPG business to serve their communities — and support their
families.
Here’s a  sample LP Cooking gas business  plan that will enable you.
1. To formalize your thinking about the business you intend to
start, and
2. To assist in raising capital  from investors and banks.

EXECUTIVE SUMMARY
Overview
There has been a substantial raise in the consumption of liquefied
petroleum gas (LPG) in the last ten years. The annual LPG consumption in
Tanzania has grown from 5,500 metric tonnes in 2005 to 145,800 metric
tonnes in 2019. Furthermore, with continued economic development in
Tanzania as well as increasing awareness in the use of LPG as the best
alternative to firewood and charcoal, the consumption of LPG will grow to a
significantly high level in both urban and rural areas. And with the
Tanzanian government’s ambition to scale up the use of LPG across the
nation, it will lead to increase in LP Gas demand and supply to hotels,
homes, factories, boarding schools, army camps, mines as well as petrol
stations.
Although competition in the LP Cooking gas business has increased over
the past few years in Tanzania, with our effective marketing and supply
strategies, building close client relationship as well as providing
complementary services, the newly-established LP Gas retailer like Quick
Gas can still be profitable and assured of recovering its entire investment.

The Company
Quick Gas Limited will be a newly-established LPG (Liquefied Petroleum
Gas) distributer/retailer in the Kasulu District of the Kigoma Region in
Tanzania to cater to the booming LP Gas (cooking gas) demand.
Quick Gas Limited will be duly registered and will obtain a trade license to
operate as a Liquefied Petroleum Gas (LPG; popularly known as cooking
gas) distributor/retailer in Tanzania. Quick Gas Limited will be equipped
with a strong team with both technical and business background in
managing all aspects of an LP Gas business: organizing, financing,
marketing, promoting products and services, and solving technical and
organizational problems.

Products and Services:


Our products and services include:
 LP Gas (cooking gas) in 6kg, 15kg, 30kg and many other volumes.
 LPG cylinders of various sizes, colour and design.
 Cookers and fittings such as pipes, gauges etc.
 Site installation services.
 Home delivery of products and services.
Customers/clients:
Quick Gas will deliver LP Gas to household, industrial and commercial
customers in Chaattogram City and will expand to other location of the city
after three years of services.

Competition
Quick Gas Limited will have both direct and indirect competitors but our
competitive advantage is that majority of the population will opt for LP Gas
rather than buy firewood or charcoal, and there are more customers to go
round.

Financial Considerations
The financial projection of this business plan is attached as an spreadsheet
file.
Objectives
The underlying objectives of QUICK GAS limited is stated as follows:
 To be known as a top quality, safe and reliable LP Gas delivery
service provider in Tanzania.
 To achieve and preserve a high gross profit margin.
 To expand to other location within the city after three years of service
in the Kasulu district of Kigoma Region.
 To achieve 25% of the market share within the first three years.
Form of Business: Limited Liability C

State of Business: Start-up (new busin

Managing Director: Lawrence Mambo

Business Development Consultant: Hussein A. Boffu

Mondays to Saturd
PM.

Opening Hours: Sundays: 12 PM –

Get the Full Version Now


In the full version, you will have access to the following table of contents:
EXECUTIVE SUMMARY
 Overview
 The Company
 Products and Services
 Customers/clients
BUSINESS DESCRIPTION
 Mission
 Vision
 Objectives
 Our Values
 Keys to Success
PRODUCTS AND SERVICES
MANAGEMENT TEAM
MARKET ANALYSIS AND TRENDS
 Market Research
 LP Gas Import in Tanzania
 LP Gas Industry Trends
 LP Gas Industry Outlook
 Our Target Market
COMPETITOR ANALYSIS
 Direct Competition
 Indirect Competition
 Competitive Advantage
SALES AND MARKETING PLAN
OPERATIONAL PLAN
 Opening Days/Hours
 Location
 Setup Cost
 Machinery/Equipment Requirement
SWOT Analysis
PEST Analysis
FINANCIAL PLAN AND PROJECTION
 
For the complete business plan for starting and running a LP Cooking gas
business  in Tanzania, make a payment of $150 (or its equivalent in
Tanzanian Shillings TZS 300,000) through Tgo pesa, M-pesa to this
number: +255655376543.
Once your payment is done, send an SMS to +255768183677 or
+255655376543 with the following details:
 Your full name.
 Your email address.
Alternatively, send an email with the above details
to info@tanzaniapetroleum.com. The moment we receive your email or
SMS and we confirm your payment, the eBook will be delivered to your
email address (in PDF) within fifteen minutes.
You can then download it and read it on your smartphone or computer.
If you’re not in Tanzania, send an email
to info@tanzaniapetroleum.com and we will devise a payment option for
you.

Some businesses does not requires much marketing effort


especially the business of commodities and one of such
business are the once that has to do with essential
commodities (Consumable). All you need to do is to locate
the business in a very good and viable area and the business
will take shape from there. However, if you want to start
your own business and you are scared of taking the needed
step to go ahead and setup the business simply because you
are afraid of the task involved in making your business
known by all people, then you need to look at starting a
business that deals with essential commodities or services.

Cooking gas supply business is one of the business that deals


with consumable and essential commodities. You can start
this type of business and start making huge profit all most
immediately. Cooking gas is an essential commodity in most
households. Therefore, if you live in a city where the
distribution of gas for cooking is not in the hand of
government, then you can consider starting your own
cooking gas distribution business.

In this post, we will show you guide on how to start a


cooking gas distribution business.

Guide On How To Start A Cooking Gas


Distribution: Business –  A Sample Business
Plan Template

1. Feasibility Studies and Market Survey is


required
If you are going into a new kind of business, the first thing
you want to do is to conduct a feasibility study and market
survey. The report you get from your feasibility study will
help you make good decision regarding the business – these
decision includes: the most suitable locations to setup your
business, the kind of training needed to be able to manage
your business effectively and more. The feasibility study will
also give you insight of the estimated cost of the start-up
capital that will needed for the business, your likely
competitions and all you would be needing to setup and
manage the business. Your feasibility study should expose
your SWOT: strengths, your weakness, your opportunities
and the threat you stand to face in the industry.

2. Draw up a Good Business Plan


After going through the first stage which is the feasibility
study and market survey, the next stage is to draw up a
good business plan.

The role of a good business plan in any startup business


cannot be over emphasized. Your business plan is not just a
business tool that gives your business direction, but also a
business tool that helps you access funding for your
business.

One of the vital documents that will be required of you when


you approach any bank for loan or when you want to seek an
investor to invest in your business is your business plan. You
don’t necessarily need to write a world class business plan if
you want to start a cooking gas distribution business, but the
bottom line is that you must ensure that you have a business
plan in place before launching your business. Clearly, a
business plan is not a guarantee that your business idea will
be successful or that you will be able to obtain a funding for
your business.

3. Raise Your Start – up Capital


You can successfully start this gas supply business with less
than $7,000 – $10,000 depending on the size of the business
you have in mind.  However, before raising the start-up
capital for your gas business, you need to make sure you
have carried out a proper marketing survey and feasibility
study to know the amount of capital needed to venture into
the business. If you don’t have the needed funds to start
your gas distribution company, the best thing is to approach
your bank for loan. But you also need to know that no bank
will give you a loan as a start-up without a security or
collateral or better still approach your family, friends and
relations to make up the needed amount.

4. Register a Business Name


Make sure you choose an attractive name for your cooking
gas business, and get it legally registered with the corporate
affairs commissions in your country. You need to separate
your business from yourself-this is more reason why you
need to register a business name to give the business a face
and a brand name. Because of the client  that will be dealing
with you in later days, they are expected to see more serious
business nor like the roadside kind of business but serious
cooking gas distribution business that they can deal and
relate with.

Apart from supplying cooking gas to homes, you can also


supply cooking gas to hotels, schools, big clubs, restaurants
and corporate organizations that run their own guest houses.
Some of these mentioned organization would not want to do
business with you when they discover that your business is
not registered or corporate enough.

5. Rent an Office Facility


One of the best locations to locate a cooking gas distribution
business is around residential areas probably an estate. The
rule of thumb is to ensure that your shop is visible enough
for people to notice. You can talk to your realtor to help you
get affordable facility that will meet your business needs and
budget.
6. Purchase the Needed Equipment and
Business Tools
Some of the needed equipment and tools you maybe needing
if you want to start a cooking gas distribution business are
empty gas cylinders, rubber gas pipes, gas regulators,
weighing machine and delivery van or a bike to start with.

7. Market Your Business and Create a


Distribution Plan
Now you have done all the needful from carrying out a
feasibility study and market survey to writing a business
plan, to putting up capital together for the gas distribution
business, to registering the business, to getting an office
space, having the necessary equipment for the business.
Now all that is remaining is to map out a marketing and
distribution strategy, if your business is located in a very
strategical location, the business will struggle less at the
beginning.

What you need to do regarding the marketing of your


cooking gas distribution business is to  have some handbills
printed with attractive editorial and advertorial content that
will attracts customers at the very first sight you can also do
the door to door approach in distributing the handbills. To be
ahead of your competitors, look at what they are doing or
offering and improve on it then find other ways of getting
new customers by rendering a free pickup and delivery
services to your clients.

Now you have it Guide On How To Start A Cooking Gas


Distribution Business

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