How To Start Palm Oil Business In Nigeria
How To Start Palm Oil Business In Nigeria. This involves investing a huge amount of money in buying and selling palm oil. In this business, investors buy palm oil in bulk, store them in large quantities and sell off when the supply of palm oil has reduced. During this period, traders bring out their stock, sell them and make a reasonable profit.
Do you wish to start a successful palm oil business in Nigeria? Do you want to get information on what it takes to start up a successful palm oil business in Nigeria? Look no further as i have prepared vital and usable information on everything you need to know about starting a successful palm oil business in Nigeria.
Palm oil is simply the oil extracted from the palm fruit. Most times, palm oils are used to prepare local African dishes.
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What are the uses of Palm oil?
There are various uses of palm oil which cooking is one of the most important. Apart from using palm oil for cooking, you can use palm oil for the following things:
- It is used to relieve stomach ache
- It is used for the production of some cosmetics especially natural products e.g. black soap
- It can help to prevent cancer as well as brain disease
- It has anti-aging properties and thus, it can be used to prevent signs of aging fast
- It can be used to treat water
- It can be used to produce drugs
- It can be used as a therapy for weight loss as well as increasing the body’s metabolism
- It can be used to preserve food as well
The list is endless as there are so many uses of palm oil
What do you need to start up a palm oil business?
There are some things that are needed to start up a palm oil business. It is almost impossible to start up a palm oil business without putting these things into place. They are simply the four factors of production.
▪CAPITAL
▪LABOUR
▪LAND
▪ENTREPRENEUR
Is palm oil business profitable?
Yes, palm oil business is a very profitable one although there are some factors that can affect the output you get from your palm oil business. Some of them could be outbreak of pests and diseases on your farm. Your ability to control these things can shoot up our profit as well as reduce it drastically.
What are the tips to make a palm oil business successful?
There are some tips that can help your palm oil business become successful in no time:
- Make up your mind
- Carry out a feasibility study
- Map out a business plan
- Register your business
- Make a storage area for your products
- Connect or network with suppliers as well as marketers
See Also: 10 Steps On How To Start A VTU Business In Nigeria
Steps On How To Start Palm Oil Business In Nigeria(Guidelines)
1. MAKE UP YOUR MIND
In every business that one wishes to do, it is important that one really makes up one’s mind on what one really wants to do. You should consider the advantages as well as the disadvantages of that business. The palm oil business also has its own advantages and disadvantages too.
2. CARRY OUT FEASIBILITY STUDY
To determine the economic viability of a business, it is important to carry out a feasibility study. In simple terms, this means that to know how successful a business would be, a feasibility study is very important.
A feasibility study is simply an analysis or a study that takes into account all the intended business’s factors which may include economic, legal and technical to ascertain the likelihood of being successful in such a business.
Things that should be considered when carrying out a feasibility study includes:
- Your target audience
- Your location
The location and the target audience should be such that obstacles cannot be in the way of getting your products across to them. If bad road is an obstacle, it is important you make a good transportation system part of your business plan.
3. MAP OUT A BUSINESS PLAN
A business plan is one that provides for everything you wish to do in your business as well as ways by which those things would be accomplished. A business plan should be one that is written down which can be provided when need be. The importance of making your business plan written is the fact that it can easily be used for reference’s sake.
It cannot be overemphasized thus that a good business plan must include the goals and objectives of your business as well as ways by which these plans, strategies, goals and objectives can be accomplished
4. REGISTER YOUR BUSINESS
Registering a business is very key to avoid unnecessary drama in your business. For your palm oil business, you can register your business with CAC. Without registering your business, you will not be able to create or open a corporate account for your customers to pay into.
Once you have registered your business, it increases the level of trust you customers would also have for you. You would simply need a valid ID card as well as a passport photograph, your signature and other personal details. You should also make sure you check out if another business has not been registered with your name on CAC’s portal.
Recommended: How To Register Business Name in Nigeria (Complete Guide)
5. MAKE A STORAGE AREA FOR YOUR PRODUCTS
Another thing you need to do is make a storage area for your products. You can choose to create a space from your house or get a small shop where you wish to store your farm products, a storage area should be such that is very conducive for the products. For instance, palm oil should be kept in a cool dry place. If you keep palm oil in a very cold environment, it can start to sleep.
A storage area too should be one that is free from insects and pests that can destroy your farm products.
6. CONNECT OR NETWORK WITH SUPPLIERS AS WELL AS MARKETERS
It is important that after you have gotten all these in place that you start to connect or network with suppliers or marketers. Connect with these set of people will be determined based on the type of palm oil business you want to start either palm tree plantation, palm oil extraction mill or selling of palm oil.
If you are going to b selling palm oil without having to extract it yourself then you need a supplier as well as a marketer that would help you promote your business, but if you wish to start up a palm tree plantation, you might not need a supplier but a marketer.
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