If you are looking to own a business portfolio in the lucrative oil and gas industry and you don’t have all the money required to become a major player in the industry, then you should consider starting your own diesel supply business. Diesel supply is one of the easiest and cheapest ways to own a thriving business in the oil and gas sector.
Unlike any other business, starting a diesel supply business requires deliberate planning, pooling of cash together, commitment and hard work. If you are starting this kind of business in a place where most industry, offices, and homes are powered by generators, then you are sure of making good returns on your investment. So the place you chose to start your diesel supply business goes a long way to determine how profitable your business venture might be.
It is always advisable to start your diesel supply business in an area where there is a challenge of constant electrical power supply. Diesel happens to be one of the easiest and safest of all petroleum products to transport because of the low level of flammability it posses on like premium motor spirit – PMS (Petrol).
If you have thought through it and you have made up your mind to go into diesel supply business, then you should consider the following sure – fire tips that are discussed below:
Starting Diesel Supply Company – Sample Business Plan Template
1. Do Your Feasibility Studies
If you desire to start a business that you can run without getting discouraged or frustrated when confronted with challenges, then you should make it a point of duty to carry out detailed feasibility studies to enable you get prepared for the kind of business you are going into. Your feasibility studies enable you to identify all that you would need to be able to build a thriving and profitable diesel supply business. You will be able to identify cheaper ways to buy diesel, you will be able to identify potential market for your product, and loads of other things that will make it easier for you.
2. Register Your Business and obtain all The Required Permit and License
Diesel supply business is one of the businesses that require official registration of the business, and then open an official company’s account. In some countries, you would be required to obtain license and permit before you can be allowed to run this kind of business. Just ensure that you visit the appropriate authority in your State to get information of how you can obtain the license and permit that is required to run a diesel supply business.
3. Draft Your Business Plan
You would be required to draft a business plan for your diesel supply business if you want it to grow. The fact that diesel supply business requires capital to establish it means that you would need your business plan to convince investors or the banks to loan you money. Your business plan serves as a guide for your business, and it makes it easier for any partner that joins your business along the line to fit in.
4. Raise the Initial Capital Required
The truth is that with diesel supply business, you would be required to supply the diesel to your customers first before you are paid your money. So, in essence you should have the financial muscle to pay for the quantity of diesel that is demanded by your clients per time. You would also need enough cash to be able to purchase at least a tanker needed for supply of diesel to your customers.
5. Rent a Small Office Space to operate from
One good thing about diesel supply business is that you can start the business from your home because the business involves going out there to market to clients and also buying diesel from the source and supplying directly to your client. All that you would need is a small office space from where you can sort out all administrative work and you can create the space in your home, but if you have enough capital, then you should consider renting a small office space outside of your home. Renting a corporate office space will help you position your diesel business for growth and bigger deals.
6. Acquire at least a Supply Tanker / Truck
If you want to operate a seamless diesel supply business without disappointing your customers, then you must ensure that you do all you can to acquire at least a supply tanker / truck. Although, you can run this kind of business without owning a supply tanker, it would pay you a great deal to own your own personal supply tanker / truck. If for instance you don’t own your own supply tanker and you secure a deal to supply diesel, you would need the availability of a supply tanker before you will be able to meet up with the demand and if you can’t secure one, then you stand the chance of losing the deal.
7. Market Your Business
The bulk of the job with running a diesel supply business is marketing. The good thing about diesel supply business is that there are loads of offices, industries, hotels, homes and schools that requires diesel to operate their business. What is expected of you is to visit places where you know they make use of diesel to power their plant to market your business. You would need at least a business card when you go out there to market your diesel supply business.
One of the easiest means of securing clients in this type of business is to
step down your price a little bit. No doubt the profit margin in diesel supply business is great and it would only cost you little to supply a little bit below the common price in the market, but you can be rest assured that it will pay you in the long run.
If you take your time to go through the steps stated above, then you can comfortably start your own diesel supply business and secure supply deals within record time.
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