Do you want to make billions from cooking gas business? The cooking gas business is worth over 370 billion naira and you can decide how much of the billions you can take from the business annually. Here is your tips to join the Billionaires of cooking gas plant business.
And just like we saw the making of billionaires in the petrol station business, we are about to witness the making of billionaires in cooking gas business. And it’s no mystery how it’s going to happen.
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All you need to do is follow the guidelines in this free report and you will be in line to become the next billionaire of cooking gas business.
I’m not trying to persuade you but if you have followed every business trend, the first movers are the biggest gainers. Cooking gas business is booming now. If you join now you start a chance to be among the early gainers.
Take for example the early days of bitcoin, banking industry, diesel business, GSM phone business, importation business, car business, and so many other businesses that you witnessed that started in Nigeria and made the early starters richer.
This report will show you How to Build, Grow And Expand Your Cooking Gas Business. It’s the same strategy adopted by the billionaires of Petroleum business. And cooking gas business is huge and can be setup anywhere in Nigeria.
Part #1: Introduction To Business
If you want to be a billionaire in Nigeria, and doesn’t think it’s impossible to become a billionaire in Nigeria;I have found the business, the process and the strategy to become a billionaire in Nigeria without fail.
If you are looking for a business that have the potential to make you a billionaire, this one will do it in just five years. if you follow my advice. It’s not a get rick quick scheme and it’s not network marketing. But it’s a proven business model and product that has made billionaires in Nigeria.
And many of the billionaires started from nothing to become what they are today. Some of them it took multiple decades. But what I’m about to show you will take you just 5 years.
This is Billionaires Business
Starting a cooking gas plant is a Billionaires business. Among the four assets in life guaranteed to make you rich, oil which is a relation of gas is one of it. So, if you are in cooking gas business you are destined to be rich. You might as well start to think like a billionaire.
Let me give you the four assets that make people rich. They are called assets because their value is unlimited. They keep growing in value and multiplying in profits.
- Business is the first one. Your business is an asset. Once you start a business you have created an asset that can you make you rich. If you don’t have a business yet, you haven’t created an asset for your future.
- Real estate is the second one. All of the forms of real estate investment falls into this category. Their assets makes anyone rich.
- Paper – that includes stocks, bonds and mutual funds. If you are familiar with this, you will realize that the penny stocks of 10’years ago are the value stocks of today. Those who bought them in pennies and very rich today.
- Commodities – Gold. Silver, oil and gas. LPG or cooking gas is one of the commodities listed as assets that can make you rich. We have many of the oil billionaires in Nigeria. The same thing that happened with oil will happen with cooking gas.
See the future prospect and act now:
Now you know that this industry has potentials to make you a billionaire. If you have followed the Nigerian billionaire index, most on the people listed as billionaires in Nigeria are oil billionaires. And the fact fact Dangote is building a petrochemical industry to further increase his wealth, exposes the huge potentials in oil and gas.
Liquified Petroleum gas (LPG), popularly known as cooking gas currently has an annual consumption value of 55.5 billion naira. That is just a current consumption rate of just 15 percent of its full value. That means that the industry has a potential of an estimated annual consumption value of 370 billion naira, and can be more.
This is by far one of the largest market potential in the country. And I’m going to show you how you can become a billionaire in cooking gas business.
How Billionaires Build Business
If you are going to make this idea work for you, you need to understand how billionaires build their business. They use other people’s money. But you can’t just get other people’s money if you don’t think like the billionaires.
I know of the complain that banks don’t give loan. But of course banks shouldn’t give loan to someone who haven’t proved they can pay back. Every billionaire you see, was once refused loan by banks.
Here is how they did it and got all the money they needed. They first got their business working. And leverage on the success of that business to get money from banks for expansion. Banks would easily give you money for expansion but not usually money to startup.
And they would need proof of payback. If you can’t prove you are capable of paying back, you don’t even deserve the loan in the first place. And don’t criticize the banks, they are in business too. If you were them, you would do the same. You won’t give someone money who’s not sure of paying back.
Gas Billionaires Secret Plan
Every billionaire plan has hidden investments in all their businesses. If you know the business strategy of McDonald’s, you will understand what I’m saying. The owner of McDonald’s built one of the largest real estate investment in the United States while creating restaurant chain.
You must identify your secret investment in your cooking gas business. That’s what gives you leverage beyond the value of cooking gas sales. And it keep growing and appreciating in value overtime.
Imagine prime locations in major cities in Nigeria. The value alone over a decade would be worth more than your entire investment in cooking gas business. And that’s what gives your investment strategy a fail-proof cover.
A choice property you bought now might be worth ten times more in a decade from now. Even if your loan fails, you can pay off your debt with less than half of your real estate investment and still have more than half remaining.
You create value out of your loan plan by setting up on choice properties.
Plan For Startup Funds
You biggest secret is in how you intend to finance your billion naira cooking gas business. To startup a billion naira company would require proper financing. You can’t make billions from kobo investment. You have to invest in the billions too.
So, where is the money going to come from? You have to figure it out from the beginning. Don’t assume when you get to the bridge you will cross it. That’s a disaster going somewhere to happen.
You have to plan how you are going to get the money that you require to build your billion naira cooking gas business. If you can’t figure it out, you can’t build the business. There is nothing like luck here. No billionaire achieved success by luck. They have the plan all set out from the beginning.
At least, you must know how to get your seed capital to setup your initial cooking gas plant. And then with a carefully laid out plan on how you will get the rest of the money to roll out more gas plants.
If that is not done, don’t waste people’s time on your dream. Being a billionaire is not by trial and error. You can do that to hit your millions but not when it’s for billions. And that’s why there are not many billionaires in the world.
Part #2: Getting Started In Billions
As a billionaire cooking gas investor, the first thing on getting started is to plan how many network of cooking gas plants you intend to setup? That means you have to put up a powerful business plan as your road map to becoming a cooking gas billionaire.
That is your first step in getting started with your cooking gas business. You cannot compromise on it. Without a proper business plan you cannot even boast of a good cooking gas plant, not to talk of becoming a billionaire in it.
And beyond having a business plan, you have to adopt a business model. How the business behaves and operates would define the brand and attracts like-minds. You should give the business a direction from day one.
Write a Business Plan
A billionaire cooking gas business plan must be ambitious and very comprehensive. You can hire a professional with experience in cooking gas business to package it. And it should be different from the general business plan circulating online for 20k. A proper cooking gas business plan should have a comprehensive location assessment report for the target location you want to setup the plant and customized to your business.
Let it evaluate deep into the business image, branding, expansion strategies, building strong customer base as against just promoting the business, with a business model that sets you apart from the competition.
Also, one of the basic reason for a business plan is the structure of the business. You need to set the structure, functions, responsibilities, hierarchies, and reporting. The business should have a workplace culture that instill discipline, proper leadership, renumeration, and career growth.
You need a mega business plan. You will need this plan to secure loans or capital from investors. But it’s important that investors see your ambitious project from the beginning. They like big dreamers who can prove they are not afraid to get it done.
There are so many businesses that have big plans, but when you show capability to deliver on your ambition, you easily win investors heart. But don’t make the mistake of seeking for investors when you haven’t proven your dream is viable.
READ ALSO: How To Package A Cooking Gas Business Plan
Building The Business
Once you have a business plan designed for your billionaire project, then it’s time to start building the business. The startup requirements and financial inclusion for the business must have been defined in your business plan.
Identify the requirements you can start doing first while you work on the others. If you have the required capital to startup immediately, good. But if not, start the process to source for funds from sources accessible to you.
The business of cooking gas plant is not a one day business. Don’t expect to do it all in one day. You might as well advise yourself to be patient. It’s okay to experience some delay but don’t loose your focus.
And if you are entirely new in this industry, I recommend that you hire a consultant or get some mentors. Although, getting a mentor in cooking gas business may not be an easy one but you can get a consultant to help you at this point.
You must set the motion for your ambitious dream with your first cooking gas plant. It’s your pilot project. It has to be the right model of your entire business. Your key model most be seen implemented in this first project.
Here are things to focus on to get it right the first time:
D) Plant Design
Let me explain the last one here, design. It’s part of your branding. But it’s more critical part of your branding. If you noticed, the banks use a particular building design. It makes it easier to identify a particular bank even if their name is erased from the building.
Use the same strategy. Don’t try to be like the other gas plants. Create a model design and brand it in your colors. That’s why I will always advise that you use a good contractor to build your gas plant.
Training & Retraining
One of the keys to a successful business is training. And to build a world class billion naira cooking gas business would require proper training and retraining of yourself and the workforce.
Cooking gas is a huge business proposition on its own. It’s a global business with successful companies all over the world your can learn from their success stories. You can also travel to experience what is obtainable in other countries and replicate such here.
The vision, mission and purpose of the business must be religiously communicated to the workforce. Also, structures, workflow, responsibilities, reporting and promotions must form part of the consciousness of the workforce.
If the people are trained to do the job, they will do it much better with great results. They will be aware of their relevance and contributions to the business. And if you instill good brand culture, people’s interests are protected and good efforts are properly rewarded.
Adopt a Business Model
One of the ways to ensure your business operates in the same way and structure is to define your business model. The structure and operation of your business must be unified and centralized for proper monitoring.
Once you are operating more than one cooking gas plant, you need your own model that would power the operations of the business. And because you are a brand, you need to make your business enticing to both customers and employee.
Think about the UBER business model. It was created to operate taxi globally by UBER without ownership of the taxis or the drivers. UBER owns the customers and shares that with the drivers. And today, UBER is the biggest taxi company in the world.
You can create your own model for your cooking gas business. Think deep and develop something world class. The successful billionaires doesn’t always go with the norm. The break the norm to create the unusual. And the unusual always win.
The people who work for you must understand how the business does its things. They must understand the company’s culture, style and approach to service delivery. And most importantly employees must see how their future and growth is protected in the organizational structure of the company.
Create a Global Brand
A cooking gas brand would set you apart from the competition. Having a brand is more than just having a name for your cooking gas plant and writing it all over your gas plant. You have to consciously build a brand with a global concept.
Cooking gas business is a global business. It’s a product that is consumed all over the world. And especially in Africa where the demand and consumption is still growing. The potential to expand your cooking gas business beyond the shores of Nigeria is likely.
Follow all the process of building a brand. Get brand managers to handle this aspect for you. It may not be something you may be able to finance from inception, but you shouldn’t take it off your sight from the beginning.
Once you build a brand appeal like Total, Oando, Dangote and the rest, you will be amazed how that would add value to your business, gives you unrestricted access to funds from banks and financial institutions for your expansion.
Having a brand is your secret to expanding your cooking gas business. If you want to become a cooking gas billionaire, you must build a brand for your business that will be recognized, accepted and respected.
ALSO READ: 10 Simple Steps To Brand Your Business
Part #3: Setup Your Gas Plant
Once you have opened a business and setup it’s structure, the next thing would be to start planning for your first cooking gas plant. You need to learn all you need to know about starting a cooking gas plant business.
Don’t take anything for granted. A business with a huge potential of making you a billionaire would not happen by accident. Everything that should make your business a success should be followed religiously.
Remember that the focus is to build a business with billion naira potential. One cooking gas plant won’t do it for you. But setting up the first gas plant is key to achieving your billionaire’s dream.
Here are the steps to guide you in achieving your dream successfully.
Conduct A Feasibility Study
A feasibility study is important when setting up a cooking gas business. Apart from marketing which is one of the key success point in cooking gas business, the other and most important aspect is the location.
Cooking gas business is a location based business. If you get the location wrong the business won’t be successful. You have to pay close attention to everything that needs to be done to achieve a better location for your cooking gas business.
And the best way to ensure the location is suitable is not by assumption but by conducting a feasibility study. This study will look into the potential of the business in your chosen location and identify key points that would drive success or cause failure for the business in that location.
It will also identify the possibility of sales and estimated volume possible and what could be responsible for it. And with this report you can choose the right spot that would be suitable to site your cooking gas plant.
Your viability report is also a key asset when looking for a loan. Investors and banks alike love to see the viability of your business location. The banks understand location. Once you have prime locations for your business, banks understand your ambition and believes in your success.
Finding The Money
Money is a very important requirement when starting g a business. The Role of money is to get things done and to amplify what’s already happening. And for this billionaire cooking gas business, you will be needing lots of money.
If you don’t know how to raise money just forget about this dream right here now. This idea is not for those looking for business they can start with little capital. There is nothing little about starting a cooking gas plant, especially when you want to build it into a billion naira investment.
However, your first call is to find your seed capital. It’s the most difficult of them all but it’s your secret to landing more money and attracting investors. Although, there are other tricks you can also apply but they are just good at helping you if you already have a solid proof of your dream possibilities.
Your initial gas plant can be used as collateral for loan to setup more gas plants. And the more gas plants you build you can further collaterize them to get more loans. Although, this might be risky but thats what business is, a risk venture.
Finding Your Initial Capital
This might be a challenge for some startups. It’s not always that easy to get initial funding from banks and investors in Nigeria. But that should not stop you from trying. There are startup funds available from The Bank Of Industry. You can explore this opportunity.
Although, it’s usually possible when you have a collateral for the loan. Most financial institutions will not grant loan without collateral. Alternatively you can use the cooking gas plant equipment as the collateral for the loan. Some banks can give you equipment financing loan to buy the gas plant.
And if that’s the case, you will need to have a land for the gas plant and a professionally written cooking business plan for the loan request. Once you can convince the bank to give you the money you ask for with evidence to prove what the funds are meant for and how you are capable of paying bank or maybe a backup for payment failure, then you have yourself a loan to finance your project.
But don’t ever make a mistake of not adequately preparing yourself for the loan request. Get first hand information on the modus operandi of the financial institution you are desiring to request your loan from. With that information, a well written business plan and verified collateral, you are good for the loan request.
Finding a Location
Your feasibility report is your compass to finding the best location within the city to site your cooking gas plant. Although, it still needs to meet all regulatory requirements before it can be approved. But knowing where the business would be better sited would help you make the most important decision about your cooking gas business.
Think like mega petrol filling stations owners. They only site on major roads and busy locations. You don’t site a mega station in an obscure location. That should be the mentality for your location choices. The only difference between you and the mega stations is that you won’t need as much lands as they occupy. And you won’t need to invest as much money as they did.
All that you require is to locate in prime areas of the cities and attract high volume cooking gas customers to your gas plant. But you must also put the cost of acquiring those location as a major cost implication. In fact, it should be the largest chunk of your financial requirement.
And you need to get the exact land size for your cooking gas plant. The Directorate of Petroleum Resources also have stipulated land sizes for cooking gas plants. You need to know what land size applies to your cooking gas plant. You need to know that the 100 by 100 square feet is minimum. If your gas plant business model is 20 to 40 MT size you should consider a bigger land size to accommodate the big tanks, give you more operational space and for car parking.
But your location is key in making billions from cooking gas business. If you make mistake of using lowly patronized areas, you will have a cooking gas plant but not the billionaire cooking gas plant. Also, a good location is equally a good collateral for loan applications.
Getting Government Approvals
Another important part of starting a cooking gas business is getting the required regulatory approvals. Cooking gas business is regulated by the Directorate of Petroleum Resources (DPR). The same agency that regulates petrol products and stations.
They also have standard regulatory requirements for setting up a cooking gas plant. You can find this document on their website to help you understand the requirements in details.
You also need to understand what their requirement is about locating a cooking gas plant. It will help you to avoid making an investment in a location that would later be rejected by the regulatory body.
Also, you have to ensure you help speed up the approvals. Your non compliance to DPR requirements can slow down the approvals. And DPR have standard 6 months period for approval. If you are the only one that can delay it beyond this 6 months period.
And there are things you can do to follow DPR requirements judiciously. One is by using experienced technical partners to build your cooking gas plant. Not locating around another existing cooking gas plant. You should give at least 2km stretch from another plant.
You can find DPR approval requirement guideline HERE to download.
Installing Cooking Gas Tank Plant
If you are approved by DPR, which actually happens in stages. You will be given the first approval, which is approval to construct. This happens after they approve your location as suitable for cooking gas plant.
When that happens, you can begin the construction and installation of your cooking gas plant. And when the building, installing and testing are completed, the agency will still come back to confirm and conduct their own tests before you can be issued the final approval to commence cooking gas business.
However, apart from finding and using a choice location for your cooking gas plant and offsetting the cost of DPR approvals, which can run into millions of naira, your next major cost is the cooking gas tank.
Depending on the size of cooking gas tank you plan to setup, the cost varies. If your model is to setup mini cooking gas plants, then you should be looking at between N4 million and N8 million for a tank range from 2.5 metric tonnes to 5 metric tonnes. These are size range for mini cooking gas plants.
But if you plan to build a mega gas plant, then you should be looking at 10 metric tonnes to 20 metric tonnes. And your cost should be in the neighborhood of N17 million to N26 million.
This kind of model that would work best should be determined by your target market. Decide if you want to use the twin 2.5MT or single 5MT gas tank.
But since your primary target is prime location, using a 10MT or 20MT would need up to 2 plots or more lands. Plan your setup cost properly but don’t ever make a wrong decision with location or your target market.
Build A Customer Base
In every business, customers are the most important part of your success journey. How you win more customers, serve and retain them are critical to your success. You have to upgrade from the normal cooking gas business model to something that’s more customer centric.
Building a powerful customer base would take a lot of effort for a cooking gas plant but it’s worth it. Endearing yourself to the customers in the community or area where you are setup wouldn’t come so easy.
There are important approach your can take to implement a customer centric cooking gas plant. Although, a proper idea contemplation, planning and execution would require the professional guidance of a consultant. For example, conduction a census like to know your customer would give you a deep insight into the huge potential of your immediate customer base.
And many more ideas that would help you explore your market and build a reliable and customer friendly business that’s capable of keeping you above the competition and making your cooking gas plant more profitable. They are better handled by your consultant and making them more unique to your business.
Part #4: Expanding Your Gas Business
If this idea would work, you will need capital to finance it. You must also know that if you are going it big with cooking gas business, you must be ready to invest big too. It’s not a meager project and you shouldn’t be thinking like a poor investor.
For instance, buying a mega spot location won’t be cheap. If you want to think like the mega petrol station owners, you have to invest big on your Locations. Prime locations in every city is not cheap.
The cost of location would become the major capital requirement now and not the cost of gas plant installation. If your model is to use the twin or single 5MT gas tanks, you already know the cost. And the cost is already fixed. But the cost of location would depend on city and the area of choice.
Growing Your Capital
So, your capital is important in building a billionaire cooking gas business. Imagine if it cost you an average N45 million to setup one cooking gas plant; that means it would cost you N450 million to setup just 10 of the gas plants. And if your target is 100 gas plants that would cost you N4.5 billion investment.
You will need to grow your capital. But finding money for this kind of project won’t be that easy. There are risks to take, but the gain is equally huge. It has a lot to do with your first and second gas plants.
You must know that the most difficult of them all is starting the first gas plant. Once you scale through with the first, then it’s a lot easier to go for the second gas plant. That’s why starting in a profitable location is key.
And if you follow my counsel on building a brand first, you can leverage on that to seek for investment capital or outrightly go for a loan from the banks. If your cash flow is very good with the first cooking gas plant, any bank would be willing to give you huge loan. Although they might ask for your gas plant as collateral.
Loan Options for Cooking Gas Business
You may have a problem getting a loan for the first cooking gas plant. But you won’t have any problem getting investors or banks to loan you money for the second plant. However, I will advise that you run the first one at least for a minimum of 1 years before seeking for any investor or bank for money.
This would give you verifiable cash flow report to present to an investor or bank as evidence or ability to pay back the loan and a clear idea of what you can do with more cooking gas plant.
It’s also possible to get the Bank of Industry to fund your expansion drive. It’s usually easier to get money from any source for expansion than startup. A startup is a risky venture. But an expansion drive is less risky because they can see your operational report for a period of time.
But don’t make a mistake of going for just any amount. Go for an amount that covers the entire cost of setting up a new plant.
Finding New Locations
Once you have become successful with one location, the next step is to start identifying more locations for new setups. The best way to target the market is to create a map for your expansion drive. You don’t have to become an artist. Just make a list of locations within your target market.
Your location map should start with either local government areas in the state of operation or different communities in your state or even the same local government area, and major roads in each location as your target. If you are targeting the whole country, then start with more profitable locations across the country.
Also, you may need to travel a lot to these locations or hire a consultant to find you profitable locations. You can make it cheaper paying a consultant for this job by using estate agents to find the locations and hire a consultant to conduct viability assessment for them before you buy.
This way, you can get a viable location each time. Remember, it will cost you some money doing it this way but it’s worth the investment. It’s better to have a profitable location than discover later that it’s not viable after investing millions.
FURTHER READING: How To Pick Most Viable Location For Cooking Gas Plant
Setting Up More Cooking Gas Plants
Once you have your location plan setup, it’s time to start building more cooking gas plants. That means repeating the steps already outlined in this special report. There may be some to jump in the process, because you can only do them once. But the rest you have to repeat where necessary.
The key points among them is finding the right location for your new cooking gas plant. This process must always be followed by a location access report. You may use the same business plan and simply update it for each of your new location. But the one of locate viability assessment, don’t ever miss doing the assessment for each of the new locations.
So, the number of the gas plants you hope to setup is now your driving force. In my assessment, to become a billionaire of cooking gas plant business you will need to drive revenue in the billions annually. And depending on your average revenue per plant, you will set your number of plants to build.
The cooking gas business will make more billionaires as we already have from the petroleum side of the sector. The stage is being set for the new billionaires of cooking gas plant business to begin to emerge. And it won’t take time before we begin to see them take their place in the industry.
Don’t ever be discouraged by the seeming sprouting of cooking gas plants around us. Even if you didn’t build them yourself, you can buy them over and add them to your many cooking gas plants. If you set your motivation right, you will see the kind of results you seek.