Cooking Gas Business: How to Start a Cooking Gas Retailer Business

cooking gas
Cooking gas is an essential commodity used by many households daily. Gas cylinders last only a limited period before they need refilling this makes the business very lucrative.
Cooking gas retailing is a niche market that provides gas refill for domestic and industrial purposes. Businesses that deal in essential commodities like food, cleaning products, drinking water need gas.
Customers are compelled to patronize your business if they want their gas cookers to work. Urban areas have a large population making it an ideal location for your cocking gas business.
Natural gas is a clear odorless substance used for cooking and industrial applications. A cooking gas retailer either has a large tank farm or gas cylinders for sale.
Natural gas is a hazardous material and is handled by trained practitioners or pipe fitting engineers.
Most important aspect of cooking gas business
The cooking gas retailer should observe safety protocols when handling the substance. There should be major emphases on maintenance, storage, and distribution.
There are two categories of cooking gas vendors. The larger business owners build gas farms where client come to refill their cylinders.
Smaller cooking gas retailers rely on manual filling and middlemen between gas farms and individual clients.
Carry out a feasibility study
Do a feasibility study of the business on transportation, storage and handling of the hazardous material. Then find a suitable location and get certification to deal with the substance.
Other considerations is getting start up capital, writing a business plan, learning technical skills and marketing.
How to get start up capital
The amount of capital you need depends on the size and scope of your business. Gas cylinder farms that offer onsite refill must accommodate large storage tanks, and gas trucks.
The gas farm will need lots of start up capital, have safety precautions and physical structures. The businessman can source funding from banks, cooperatives, unions and contributory groups.
He may seek direct partnership or investors in his business or use personal savings.  A proper feasibility study and market survey will aid your gas distribution business.
A small gas retailer requires a small shop a few gas cylinders and manual pressure machine and refill pipes. Unlike large gas distribution companies the small retailer can use a bus or motorcycle to supply gas to clients.
You need to get proper registration and certification of your business before you start.
Locating your business
Large gas distribution companies are not allowed to locate in residential areas. There should be ample distance from residential houses and a gas farm because of safety considerations.
Small gas distributors can setup in residential areas because of the limited amount of gas cylinders he has on site. Once he abides by strict safety precautions the small gas retailer is just fine.
Small and large gas farms should be visible and easily accessible to customers. You need to source your gas from major gas companies in your country.

Equipment needed to run a gas distribution company
The equipment needed is a mode of transportation for the natural gas. The company needs trucks, buses, or a motorcycle for smaller distributors.
They also need large storage tanks, hardware, pressure gauges, out houses and other safety equipment. Others are rubber gas pipes, empty gas cylinders, weighing machine, and gas regulators.
The haulage truck should be fitted with every safety requirement and certified suitable for gas haulage. You also need a well ventilated shop or large open landed property.
State regulatory agencies
State regulatory agencies require a letter of approval, financial statement, and credit worthiness. You also need to have a standard service contract.
The regulations differ for each country so get the proper certification and follow the rules.
Who are your clients?
Cooking gas business is very dynamic and you have various categories of customers. Your customer base includes hotels, manufacturing companies, catering schools and private homes.
Other clients are guest houses, restaurants, clubs, and other gas farms.
Owning a Tank Farm
A gas tank farm is capital expensive and requires lots of finance. You need a trade license and dealership with major gas companies.
The mode of getting your gas to site is either gas pipes directly from gas companies or transporting the gas in gas-tankers.
The gas is then stored in specialized containers and channeled to pressure pipes. Major wholesalers, retailers and individual customers buy directly from tank farms.
To setup the farm you need technical professional to handle the highly inflammable gas. You also need a large expanse of land, underground tanks and sales depot.
You can buy your own tankers or rent them for haulage to site. Gas tank farms make their money from turnover sales. So they need to sell lots of gas to make the margin.
Marketing your gas distribution business
A good visible location is the best form of marketing for gas distribution companies. The location will attract customers to your business when they require your services.
You can market your business via electronic media like radio or television. You can use other channels like printing handbills, posters and bill boards to get clients.
You can distribute your product directly to homes with your trucks and buses. Cooking gas retailer business is a highly profitable business venture.


Post a Comment