Oil and Gas Opportunity: How to start cooking gas retailing business.

 Retailing of cooking retailing business gas is one of the oil and gas related business opportunities that you can start with little start – capital.

Cooking gas Business is still thriving and profitable oil and gas related business that an entrepreneur who is looking towards starting a business should consider starting. This type of oil and gas business is suitable in countries where gas is not supplied to apartments through a structures pipe system.

The cooking gas retail business involves buying and selling of cooking gas. The business owner buys huge quantities of cooking gas, storing it in tanks and sells it to individuals that use it for domestic cooking as well as industries that require large quantities for fueling purposes.

Cooking gas (natural gas) is a clourless, odourless gas naturally. It is used for cooking as a cheaper alternative to electric energy. It is a clean alternative to coal-based electricity and kerosene-fueled cooking. This is the reason it is now the most preferred cooking fuel by homes and businesses.

Cooking gas retail business might just be the best option for you, If you have been looking to start a business of your own.

The   large and booming demand for cooking gas in virtually all settlements worldwide has created lucrative opportunities for smart entrepreneurs.

There is a need for you to investigate before investing in this business so as to know the benefits and the risks it involves.  You would need to carry out some good research. This gives you the opportunity to have sufficient information about the business that you plan to delve into.

Some of the factors to consider

·        How to learn everything about this business?

·        How to  measured cooking gas ?

·        Where to buy from?

·        What are the common challenges cooking gas retailers are facing?

·        How to identify quality gas?

·        How to handle your gas cylinders?

·        How to refill a customer’s gas cylinder?

·        What are the various types of cooking gas that exists and which is the best in your area?

·        What are the factors that affect the market price of cooking gas in your area?

The Potential Risks of Cooking Gas retailing Business

The major risk in cooking gas retailing business is fire explosion which is very common due to the high inflammable nature of liquefied natural gas. That is not much problem because it can be avoided.

You will buy good fire extinguisher that can be very handy in time of minor fire outbreak.

You need to be alert at all times to detect when there is leakage in those cylinders as leakages is one of the major cause of fire and explosion.

Again, exposure to health hazards is another risk it involves, in the course of refilling your gas tanks and those of the customers; you are bound to inhale at least a minimal dose of gas. It will not affect your health in anyway but when you inhale these small doses of gas over a long period of time, your health and life becomes endangered. One of the ways to protect yourself and your body is to buy gas masks and put them on when refilling the tanks.

 Government regulation can be another risk involved. If government decides to increase the price of LPG today, some consumers may find it difficult to buy and have to go back to using kerosene, firewood and other local sources of energy.  Thereby decreases your sales.

But, government is encouraging sales of cooking gas because its sales discourage deforestation in the country.

How to start cooking gas retailing business especially in Nigeria

Learn: Investing time to learn the ins and outs of the cooking gas retail business is very important. Knowledge, among others, is one of the keys to success in any business. I advice you invest time to get the basic insider knowledge about this business. If possible, you can seek tutelage from someone established in this business.

 Write your business plan: Writing a business plan is very important, as it reveals many important details that you may not have paid attention to.

It will give you some insight into the feasibility of the business in your local area, the required start-up capital, the costs of running the business, the market and competition, and other very important factors to be taking into consideration.

Look for an ideal location: Having done your research, you need to find an appropriate piece of property for your business. As a result of the hazardous nature of cooking gas, most federal and state governments have laid-down regulations concerning the site of a cooking gas retailing business. It is very important that you find out the rules that apply in your state or country regarding property to be used for cooking gas retailing.

Another important factor you will need to bear in mind when choosing a location is your market. It is important that you locate your business close to where there are many potential customers.

 Some good places to site your cooking gas retail business are residential areas (majorly dominated by the middle class), high institutions (students now prefer cooking with gas than kerosene because gas is odourless, smoke-free, cooks faster and last longer), restaurants and fast food outlets, entertainment centers.

Install the needed facilities: You can hire professionals to help you install the tanks, electronics, and other equipment and facilities that you will need to conduct your business safely. After installation, it is vital that you check all equipment and facilities and ensure that they have been well-fixed. Also, you must ensure that there are no leakages or loose fittings.

Transportation of your Gas Cylinders:  Transportation or distribution of cooking gas to customers in fairly distant places will need a truck or van that is capable of safely hauling cooking gas. If you cannot afford to buy one, you can lease one each time you need it, pending when you would be able to procure yours. You must ensure that its conditions meet the requirements for vehicles hauling hazardous materials such as cooking gas.

Start operations and marketing: Having put everything in place, you can launch your business. To get many customers, you can adopt aggressive marketing strategies and offer attractive discounts.  You can promise customers rewards for referring new customers, and you would attract many customers within a short period.