Home Oil & Gas Guide On How To Start A Cooking Gas Distribution Business

Guide On How To Start A Cooking Gas Distribution Business


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.