Are you interested in starting a palm oil business? You need a sample business plan template for palm oil extraction or a feasibility report ? So I advise you to read.
Palm oil is used for domestic cooking and is used for this purpose in almost all African households. It is also used industrially as the main ingredient in soap, cosmetics, processed foods, etc. Its industrial demand arises from its varied and widespread use in the food and chemical industries.
If you live in a country like Nigeria, Malaysia etc. where palm oil is in high demand both nationally and in industry, you might consider starting an oil business from webbed. All this business requires is some basic education and training in process technology, which you can easily get by consulting with a veteran of your business or searching the internet for helpful resources that can help you.
This article is a quick guide that explains everything you need to know about starting a palm oil extraction business. If you’re interested in business, read on to learn more about its implications. Style
Starting a Palm Oil Business – Sample Business Plan Template
1. Start by writing your business plan.
Writing a good business plan is an important part of starting a business. This will help you know in advance if you are able to start a business or if you don’t have any requirements yet; because it highlights all the launch requirements in monetary terms.
It also includes market analysis, financial summary, and other details to help you plan your business perfectly from the start. Even after starting a business, your business plan will help you stay focused on achieving your goals. While having and following a business plan does not guarantee success for your business, not having one is usually a fiasco.
2. Source of funds
Well, in truth; This activity is capital intensive. The palm kernel activity will require 5,000,000 N to 10,000,000 N ( from $ 30,000 to $ 60,000 ) depending on the size of your business, the location you choose, and many other factors.
You need approximately 750,000 ( about $ 5,000 ) to cover start-up costs, which include at least 3 years of rent, business registration and agency fees, insurance, etc.
The initial assets generally constitute the remainder of the required capital. These include the funds needed for recurring expenses ( one year forecast ), initial stocks and stocks ( for six months ), as well as the value of other start-up assets such as office furniture, processing equipment and machinery, office furniture, etc.
If you can afford all the funds you need, you can run your business as a sole proprietor. However, if you need more third-party funds, you should consider bringing in one or more others and entering into a partnership. Better yet, you can get equity financing ( approach angel investors ) or debt financing ( to take out bank loans ) or receive grants for small businesses, if applicable.
3. Find a good place
Before choosing a location for your palm oil business, you will need to consider the availability of raw materials as well as the target market. The ideal location would be very close to the market as well as the source of the raw materials.
4. Purchase the necessary equipment.
The production of palm kernel includes the steps of cleaning, breaking, peeling, steaming, screw pressing and filter pressing. And most of these processes require the use of machines for faster production. Thus, you will have to acquire the necessary machines for each process.
However, you have to keep in mind that high quality machines will be more productive and will save huge repair and maintenance costs in the long run. Therefore, choosing your cars well is very important.
5. Hire the necessary staff
For the day-to-day operation of your palm oil factory, you will need to hire competent people to fill certain positions. Besides the manager ( who could be you, the owner ), you will need to hire a technical assistant, storekeeper, around 5 production workers, quality control staff, security staff, and sales and administration managers. Staff. Overall, you will need 10-15 employees to effectively run your palm oil business.
6.start production and promote your business
Once everything is ready, you can start production. Since your business is still very new, you will need to adopt marketing strategies to get the word out and reach customers. Your customers include households, restaurants, food processing, soap and cosmetics, etc. If you have a lot of them, you can easily approach them and convince them to buy from you.
In conclusion, it usually takes a long time to develop your business plan before you start. between 3-4 months. It may take less or longer, depending on your enthusiasm, availability of capital and other factors.
2 The challenges of starting a palm oil business
a. This is a capital intensive project as you will need to build a production structure ( factory ), and cars won’t be cheap either.
b. This requires intensive management as you will need several people to manage the different stages of production.