Recycling Business – How To Start Recycling Business In Nigeria

The recycling business is beginning to gain ground in Nigeria unlike before. An aspiring entrepreneur can make millions of naira running a recycling business.

In Nigeria, most people still need to be educated about waste disposal because an average Nigerian take sachet water or plastic drinks and throws the nylon or plastic on the road. Hence, there are so much waste all over the country blocking drainage and making the country dirty.

See Also: How to start Printing Business in Nigeria

If you are considering venturing into the recycling business, you will not only be running a profitable business, you will be carrying out community service and contributing to the health improvement of Nigerian citizens. The recycling business is a win-win opportunity for you and the environment.

In this article, you will learn everything you need to know about starting a recycling business. If you dutifully follow the steps highlighted here, you will run the business like someone that has been specially trained for it.

The major requirement needed to start is to select the recycling business idea that interests you and start working on it immediately. However, you must know that there is stiff competition in recycling business, so you will need to be knowledgeable about the business to stand tall amidst competition.

See Also: How To Start Bottled Water Or Pure Water Business In Nigeria

What Is Recycling Business

Recycling business involves the refurbishment of waste products or materials to create new, useful products.

Pros of Starting A Recycling Business

1. It helps protect the environment

If there was no recycling, waste products would have been burned or ended up in the landfill. Thereby, causing harm to the environment.

See Also: How To Start An E-Commerce Business In Nigeria

2. It conserves natural resources

Recycling waste reduces dependence on raw (natural) resources, which are already massively depleted.

3. It creates job and business opportunities

In recycling, people are employed to collect, sort, and handle machines. Hence, you are creating job opportunities for the unemployed in Nigeria.

See Also: How To Start A Cleaning Service Company In Nigeria

4. It is profitable

The recycling business is lucrative in Nigeria because there is an existing market for it. As many people live below the pyramid in Nigeria, recycled, yet good products will appeal to them.

Steps To Start Recycling Business

Step One: Find A Niche

As mentioned earlier, the recycling business is a competitive business venture. Therefore, if you are starting small, it is advisable to find a niche that is not too saturated but in demand.

To achieve this, conduct thorough market research to investigate what recycling businesses already exist in your area. Also, find out how they are able to sell the materials and the pricing system they use.

There are hundreds of recycling businesses in Nigeria and you need to select the best to invest in. Here are some of the most common recycling businesses in Nigeria:

See Also: How To Start A Poultry Farming Business In Nigeria

1. Waste Or Garbage Recycling

Actually, this is one of the most popular recycling business ideas. Waste recycling is the processing of used materials into new, useful products.

It uses less energy and it’s a great way of controlling air, water, and land pollution. You can recycle the wastes from homes and businesses, picking up their bins on a regular basis.

Waste items that are usually recycled include:
a. Plastic Waste – This include water bottles, plastic bags, rubber bags, plastic wrappers, etc

See Also: How To Start Mini Importation Business In Nigeria

b. Paper Waste – This include books, magazines, newspapers, cardboxes, envelopes, etc

c. Glass Waste: This include broken bottles, beer and wine bottles

d. Aluminium Waste: This include cans from soda drink, tomato, fruit cans and other types of cans

See Also: How To Start An Export Business In Nigeria

2. Printer Catridge Recycling

New printer catridges can be quite expensive and many people cannot afford it. Hence, recycled catridges is the alternative they opt for. A simple cleaning and refilling process will provide you with a good profit.

See Also: Top Business Opportunities In Lagos And How To Clinch Them

3. Tire Recycling

In Nigeria, used tires are found on almost every street. You can find them in landfills and other areas. Recycling them holds great profit potential. However, it is sometimes difficult to find the right companies to work with but with good research, you can find the right companies to partner with and start recording your profit.

See Also: 12 Eco-Friendly Business Ideas That Can Make You Wealthy.

4. Wood Or Timber Recycling

This is the process of turning waste timber into usable products. Wood recycling dates back to the ’90s and it’s still as profitable as ever. You can get recyclable wood from construction waste, demolished buildings, old furniture and other similar sources.

See Also: Creative Business Ideas For Fresh Graduates In Nigeria

5. Scrap Gold Recycling

Without mincing words, gold recycling is one of the best business ideas to venture into. Interestingly, gold is easy to melt and does not lose its purity even when used repeatedly. More than that, gold recycling is cheaper and better for the environment than mining new gold.

See Also: 12 Online Business Ideas That You Can Start From Home And Become Rich

6. Electronics Recycling

Usually, it is not everybody that can afford new electronics. Some don’t even go close to new electronics, hence, you have a ready market for your new business. All you need to do is purchase scrap electronic devices and sell them to recyclers for profit. Some of the electronics you can recycle include mobile phones, laptops, computers, television, and other types of electronics.

After selecting a niche, you can either collect the recyclables and sell to recyclers or recycle them yourself and resell. The former is good if you don’t have the required capital needed to get recycling equipment and machines.

See Also: 10 Business Ideas To Start With 100K In Nigeria That Will Make You Millions

Step Two: Create A Budget

The amount needed to start your recycling business depends on the size of your business and the kind of operation you want to run. Most importantly, you will need to budget for licensing and permits because you can hardly run a recycling business without them.

Additionally, if you are quitting your job to start recycling business, endeavour to set aside some amount of money that will cater for your running expenses for at least a year or two. This is because the profit may not come immediately as expected.

Other expenses to bear in mind
include:

  • Business registration
  • Vehicles to haul recyclables
  • Storage space for your recyclables
  • Employee salaries
  • Machineries to process recyclables
  • Money to pay people for their recyclables

See Also: 10 Practical Ways To Reduce Business Expenses

Step Three: Create A Business Plan

Recycling business requires a thorough business plan to begin. All the research you conducted will help you write a detailed business plan. A business plan is a formal document containing the details of how you will run your business.

With your business plan, you can apply for funding and grants to start out your business. There are different sections that must be included in your business plan.

They include:

  • Your company’s goals and objectives
  • Market research and fesibility study
  • SWOT analysis
  • Competitive advantage
  • Financial projections
  • Marketing strategy
  • Appendix

See Also: How To Write A Business Plan Step By Step For Your Business

Step Four: Get Capital For Your Recycling Business

Once you’ve estimated the needed amount to start your recycling business with, the next thing to do is to source for a way to get it. You have different funding options. One of the funding options available to you is to obtain a bank loan. In reality, small business owners find it difficult to obtain loans from banks because of the inability to provide the required documents or collateral.

However, there are several funding options; friends and family, angel investors, venture capitalists, international grant opportunities, etc. In most cases, the requirements are to submit a detailed business plan and other documentation about your business.

Investors want to be sure you understand the business you are venturing into. Hence, your business plan should come in handy in this step. On the other hand, if you have enough savings to begin, then you can move to the next stage.

See Also: 11 Ways to get funding and grow your business in Nigeria

Step Five: Register Your Business With CAC

In Nigeria, the recognised body for registration of new businesses is Corporate Affairs Commission (CAC). It is important to register your recycling business as soon as you start so that you don’t encounter challenges and harrassment from government officials when you begin operations.

See Also: Top Legal Documents Every Entrepreneur And Start-Up Should Have

First and foremost, choose your business structure. Do you want to register as a sole-proprietorship business (Business Name) or as an incorporated entity (Limited Liability Company)? You can also register the business as a social enterprise (NGO).

The cost and requirements for both are different. But, you can start out as a business name owner and later upgrade to a limited liability company as you grow.

The registration procedures are easy and can be done online via CAC’s portal. Alternatively, you can hire a lawyer to handle the registration process for you because most aspiring entrepreneurs encounter challenges completing the registration themselves.

One of the trusted firms known for offering business registration service at a low price is ReDahlia, located at 43B, Emina crescent off Toyin Street, Ikeja, Lagos. The good news is that your distance is not a barrier. They can carry out the registration process for you and deliver the certificate to your preferred location.

See Also: Benefits of registering of business with CAC

Step Six: Obtain The Needed Permits And Licenses

The recycling business deals with the environment so, it attracts certain licensing and permits before establishment. Therefore, endeavour to get all necessary licenses and permits before you begin operations.

For instance, one of the bodies that issue recycling license in Lagos is the Lagos Waste Management Authority (LAWMA). Once you get licensed with them, your name will be listed on their website stating the category you belong to and your certificate number.

Apart from LAWMA, ensure to research other regulatory bodies in the recycling business. This will help save you the embarrassment melted out by law enforcement agents.

See Also: Proven Way To Validate Your Business Idea With Customers

Step Seven: Acquire The Relevant Equipments/Machines

At this point, you are ready for business and you cannot run your recycling business without equipment or machines. Hence, you need to purchase them.

If you are on a lean budget, you could go for equipment leasing or partner with recycling companies that are willing to work with you. The niche you choose will determine the equipment or machine to purchase.

Generally, the equipment you need includes: scales to weigh your plastic waste, bins, sorting and grouping equipment, washing gears, etc.

If you are working with larger recyclables, you will need shredders, pulverizers, granulators, and other size reduction machines to break down materials
into smaller sizes.

See Also: How To Deal With Difficult Customers In Nigeria Using These Strategies

Other equipment include:

  • Truck
  • Vibrator feeders
  • Magnetic separators
  • Baling machine (Vertical balers, horizontal balers, two ram balers, etc)
  • Compactors
  • Grapplers
  • Metal Shears

Another way to make money from your equipment is to lease them out to recyclers and collect hire fee in return.

See Also: How To Develop Growth Strategies For Small Businesses

Step Eight: Acquire A Space Or Land In A Good Location

The recycling process begins with the collection of materials. For instance, you can collect recyclables from people’s homes, waste management companies, dumpsters at commercial facilities like office buildings and warehouses, industrial facilities, etc. Thereafter, these recyclables will be taken to recovery center (your acquired space) for further processing.

It is important to have your business location where people are most inclined to drop their recyclable wastes. That way, people can freely bring their recyclables to you.

Importantly, ensure your chosen location is approved for such a business. You can approach your local government to find out if your proposed location is approved for your kind of business to avoid future challenges.

Asides from having an open space for material processing, you can also get an office to secure your equipment against theft.

See Also: 10 Business Funding Opportunities For Aspiring Entrepreneurs In Nigeria To Grow Their Businesses

Step Nine: Hire Employees

The employees you need in the recycling business are broad. When you begin, you will need people that will help you with the collection of recyclables and there’s no limit to the number of persons you can employ.

The good part is that they don’t have to be permanent employees. They can work on a commission basis. Additionally, you will also need some full-time employees that will handle the machines and day to day affairs of the business.

See Also: Ways To Be A Great Boss And Apply Emotional Intelligence With People

Step Ten: Promote Your Business

There are many manufacturing companies in need of your recycled materials and now is the time to reach out to them. Advertisement is the oil of your business and you mustn’t joke with it.

Although waste management is very lucrative, you may not mine the money in it if you don’t have a good marketing strategy in place. The good news is that marketing has been made easy in this century with the advent of the internet.

See Also; Cheap Ways To Promote Your Business As An Entrepreneur

Apart from setting up a website for your company, ensure you open a page across social media platforms. Additionally, there are other ways to promote your product such as word of mouth, newspaper advert, collaborations and partnerships, etc.

In conclusion, before investing in any type of business, it is important to know everything about the business. Therefore, in addition to all you’ve learned in this article, it will be nice to intern at an existing company or get mentored by someone already in the business. That will give you practical knowledge and experience about the business.

See Also: 21 Ways To Acquire New Customers For Your Small Business

Are you running a recycling business or working on starting one, we will like to read your thoughts in the comments.

At entrepreneurs.ng, we put businesses on the world map and create visibility for their businesses. Reach out to us today to tell your story for the world to see.

To keep track of our activities, follow us on Instagram

The post Recycling Business – How To Start Recycling Business In Nigeria appeared first on Entrepreneurs In Nigeria.

Continue Reading Recycling Business – How To Start Recycling Business In Nigeria

How to Start A Rice Farming Business In Nigeria

Rice farming business is a profitable business to venture into. This is because it is the most consumed staple food in the world, especially in Asia and Africa. Also, rice is the third-highest produce worldwide after sugarcane and maize.

See Also: Payroll Management Tips For Entrepreneurs And Smal Business Owners

In Nigeria, about 7 million tonnes of rice is consumed in a year. Rice is food to many people in Nigeria and it’s popular in homes, events, and public places. Despite our consumption rate, it’s sad that only a few percents of the rice we consume is produced in Nigeria.

However, there has been an upturn since the closure of land borders for food security purposes by the Nigerian government. Also, the World Bank, Central Bank, and other governmental bodies are beginning to boost the agricultural industry by providing support to smallholder rice farmers in varying degrees.

As a result, the agribusiness narrative is changing and rice farming is becoming more and more profitable for rice farmers.

Do you want to join the league of entrepreneurs who are creating a positive economic impact by embracing rice farming? If your answer is yes, then stay with us as we are about to show you how to start a profitable rice farming business.

See Also: Printing Business – Comprehensive Guide On How To Start Printing Business

Rice Farming

Rice farming like other kinds of agricultural business is capital intensive but lucrative. It produces one of the highest yields when compared to other agricultural products. For example, a well-cultivated one hectare of land produces 2-3 tonnes of rice.

The farming process takes about four months between planting and harvesting. You need a large expanse of land, equipment, packaging materials, storage space, labour, transportation, etc. to start your rice farm.

Although rice farming has its challenges besides being capital intensive and demanding a large workforce, it’s still a very lucrative business to venture into by an aspiring entrepreneur.

To start your rice farming business, you need to follow the steps below:

See Also: How To Start Bottled Water Or Pure Water Business In Nigeria

Create A Business Plan

Rice farming requires adequate planning and conducting feasibility study. One of the ways to ensure that you consider every aspect of the business is by drafting a business plan.

The business plan will serve as a guide on the steps to take to make the vision achievable. While preparing your business plan, you will take into account important elements of the business such as location, marketing, funding, etc. The business plan is a breathing document that can be updated at any time as the business grows.

In addition, with a well-written business plan, you can access loans from financial institutions or seek funding from investors.

See Also: How To Start A Cleaning Service Company In Nigeria

Register Your Business

After creating a business plan, the next step is to register your business. In rice farming, aside registering with the Corporate Affairs Commission (CAC), you will need to register with agencies like the National Agency for Food and Drug Administration and Control (NAFDAC), the Rice Farmers Association of Nigeria (RIFAN), e.t.c

The Corporate Affairs Commission is responsible for registering businesses in Nigeria. There are different business structures to choose from and there are different factors that will influence the type of business structure you choose.

You can go directly to the CAC website and register your business or let firms like ReDahlia handle your business registration seamlessly for you. ReDahlia is a solution center for the entrepreneur and is widely known for providing business solutions to business owners.

To get your NAFDAC registration, visit the official website of NAFDAC to start and complete the process.

See Also: How To Start A Poultry Farming Business In Nigeria

Secure Funding

Rice farming is capital intensive as we mentioned and requires huge investment in terms of human resources and finance. If you don’t have enough funds to start this business, you can approach investors or meet with partners who have the same vision as you do.

Also, as part of the Nigerian government’s effort to boost the food supply for her citizens, funding is readily available for agricultural businesses. Therefore, you can access government grants or loans at low-interest rates from commercial or microfinance banks.

Furthermore, there are other benefits and supports asides from money available for agric focused businesses like tech support. To access these opportunities, you need a well-written business plan

If your funding is secured or you have the requisite capital to start this business, you are on your way to becoming a bonafide rice farmer in Nigeria.

See Also: Mini Importation – How To Start Mini Importation Business In Nigeria

Step By Steps Plan On Rice Farming Business

Step 1 – Choose A Quality Seed

The first essential step to rice production is seed selection. There are different varieties of rice seeds suited for various ecologies such as lowland, upland, deep water, mangrove swamp, etc.

A good rice seed is resistant to disease and yield much grain during harvest.

Therefore, you need to choose a quality seed suitable for the environment it will be grown.

See Also:  How To Start A Wholesale Distribution Business

Step 2 – Choose The Right Land

After choosing the seed to plant, the next is to choose a suitable land area. Rice requires slightly more water to produce than other grains. Therefore, it is advisable to choose lands with water retention capacities, such as swampy (clay), or loamy soil that contains organic matter. 

Rice can be grown in different environments as long as there is water. But, it’s advisable to plant in ecological areas where rice is traditionally grown such as Kebbi, Benue, Ekiti, Jigawa, Ogun, Kaduna, Kano, and other states known for rice production in Nigeria.  

See Also: Creative Business Ideas For Fresh Graduates In Nigeria

Step 3 – Land Preparation

For rice farming, land preparation needs to be done to put the soil in the best condition for the best yield. It involves plowing and harrowing to till and level the soil.

You can till with a hoe, tractor, or other machinery. This will allow the seeds to be planted at the right depth and help with weed control. Land leveling is also important and should be done as it will help the seedling become more established and reduce erosion.

The land for rice farming is better prepared from November to February when the rainy season is over. As the rainy season approaches, the land would have been ready for planting. However, if your land is in the savannah region, your land preparation can start in February.

See Also: Top Business Opportunities In Lagos And How To Clinch Them

Step 4 – Choose A Planting Method

After the land has been prepared, the next step is to plant the seed. This planting can be done in two ways; direct seeding and use of nursery and subsequently transplanted.

Direct seeding involves dibbing or broadcasting dry seed or pre-germinated seeds by hand or by machine. In rainfed and deep-water ecosystems, dry seed is manually broadcast unto the soil surface and then incorporated either by ploughing or harrowing while the sun is still dry.

While, in irrigated areas, seeds are normally pre-germinated prior to broadcasting.

With direct seeding, weeds can begin to affect the plant at the early stage, but with the use of herbicides, they can be controlled.

When the seedlings are raised in the nursery, they are transferred from seedbed to the wet field. It requires less seed and is an effective method to control weeds. Seedlings can be transplanted by machine or hand and it’s the most popular technique across Asia.

See Also: Proven Way To Validate Your Business Idea With Customers

Step 5 – Water Management

Rice is highly sensitive to water shortages and the process of water maintenance differs from one ecological area to another. Therefore, you need to maintain the water level in the field up to 5cm one week after transplanting until grain matures.

Step 6 – Apply Fertilizer

There are different fertilizers that can be applied at different stages of the growth of the rice. This means you need to apply specific nutrients at different times.

You need to speak to a pedologist to advise you on the right organic fertilizer to use, the right quantity and the right time to use them to ensure you have the best yield.

See Also: Work From Home Tips That Helps Productivity For Teams And Businesses

Step 7 – Control Weed And Pest

Weed, pests, viruses are enemies to rice plants and can reduce the yield or value of the crop. Climatic factors, improper irrigation, overuse of insecticides, weather condition and high rates of nitrogen fertilizer application exposes rice plant to diseases. So the sooner you begin to treat the plant and fight these elements, the best for you.

Weeds can be managed through hand weeding or herbicides application. Pests like termites, armyworms, insects, nematodes, rodents, birds, pathogens, e.t.c can be managed by using chemical controls.

See Also: Benefits Of Blogging To Businesses And What To Do Before Starting A Blog

Step 8 – Harvest And Thresh

Depending on the seed variety, rice crops can be harvested after about 105 – 150 days of planting, about the time when the plants are already turning yellow/brown. It involves cutting, stacking, handling, threshing, cleaning, and hauling. harvesting can be done manually or mechanically.

Manual harvesting involves cutting the rice crop with sickles and knives, while mechanical harvesting involves using reapers to cut down the rice. Thereafter, you begin to thresh.

Threshing involves separating the paddy grain from the rest of the crop on a mat or tarpaulin. It should be done either immediately or within a day or two after harvesting.

Also, after harvesting, you can plant leguminous crops like beans, chickpeas, lentils, soya e.t.c in the farm, This will serve as organic matters and help to maintain the soil nutrients for another planting season.

See Also: Tips On Delivering A Perfect Business Pitch

Post Production

After threshing, cleaning, and hauling, the next step is to field dry the paddy and then mill.

First, paddy is dried to bring down the moisture content to no more than 30% for milling. You can manually dry paddy by spreading them on a clean concrete floor, mat, or tarpaulin, while they sun dry for 1-3 days manually. After drying, you then mill.

Milling is a crucial step in the post-production of rice. It is done to remove the husk and the bran layers to produce an edible white rice kernel. A good mill can achieve a paddy-to-rice conversion rate of up to 72% but smaller, inefficient mills often struggle to achieve 60%. Also, there should be a minimum number of broken kernels in the conversion process.

See Also: 10 Best Practices For Email Marketing For Small Businesses

Marketing

If you successfully follow the above process, you will have rice grains ready to be sold. The next step is to package your rice for sale and consumption.

In packaging, ensure to have your logo, farm address, name, and other identification numbers branded on the packaging sacks. It’s expected that during the business plan stage, you already know who your target market is. It’s actually nice to have a ready market; people ready to purchase your rice before starting the planting process.

To market your rice, you can create a website and social media pages where your farming activities can be showcased and orders booked. Also, you can invest in radio, television, and billboard advert to create awareness.

Most importantly, if you produce quality rice, free of weevil and other kinds of ants, people will patronise you willingly and this will reduce your marketing cost and increase your profit.

See Also: How To Acquire New Customers For Your Business And Make Them Stay

Conclusion

Just like every other agricultural business, rice farming is a profitable agribusiness to venture into. Although it can be time-consuming, capital intensive, and require expertise, it is a good business area to invest in especially with its local demand and very high export potential.

Are you currently dealing in rice farming business, and will like to share how you started? OR Are you an aspiring rice farmer in need of guidance? We will like to hear your thoughts in the comments.

We can give your business a global exposure by telling your story Entrepreneurs.ng. Contact us today, lets get started.

To keep track of our activities, follow us on Instagram

The post How to Start A Rice Farming Business In Nigeria appeared first on Entrepreneurs In Nigeria.

Continue Reading How to Start A Rice Farming Business In Nigeria

3 Clever Ways Paxful Moms Talked Bitcoin With Their Kids

While even some adults have trouble understanding bitcoin, you may be scratching your head looking for ways to explain it to your children. Don’t sweat it—let’s look at how some real-life Moms had the bitcoin talk with their kids.

1. Let your child manage their own money

By this, we don’t simply mean giving your kids money, but rather allowing them to explore the idea of saving, the concept of online wallets, and the advantages of bitcoin.

“I teach my daughter about money by giving her her own bank account and a piggy bank. Everytime I get my paycheck, I’d transfer a small amount of money to her savings account. When we go to the grocery store, I let her keep the change so she can save money in her piggy bank.

Selfie of Shainne with her daughter

Regarding bitcoin, I simply explained that it is like the money in her piggy bank but inside her mobile phone. I also let her navigate my Paxful wallet account and explain to her some advantages of using bitcoin, including how much easier and more secure bitcoin is than money in the bank.” — Shainne, L3 Feedback Analyst

2. Associate bitcoin with what they know

Britta and her sons taking a stroll

Britta, our Senior People Operations Manager, has two boys that understand bitcoin as just another form of money (or more specifically, that bitcoin is Paxful!). Meanwhile, the children of Renata, our LATAM Marketing Consultant, think of toys when they hear about bitcoin. 

“Whenever I asked my Mom to buy me toys when I was young, she’d always tell me that she had to work to make money in order to buy me something. Now that my 4-year-old son, Dante, knows that I work at a crypto company, he’d ask me if I can save bitcoin to buy him toys. 

Renata and her kids

My 7-year-old daughter Teresa, on the other hand, seems to understand bitcoin a bit more and tells my mom that digital currency is what people use to buy and sell things without ‘touching.’ To my kids, bitcoin is this virtual money that I can use to buy them toys, which explains why Teresa asks me about how many BTC I’ve sold every day I come home from work!” 

3. Turn to real-life resources   

People say children learn when they experience things for themselves, so get ready to spend your money on online games and at restaurants that accept bitcoin. Here are some ideas and resources you can turn to:

  • Take your kid to a store that accepts bitcoin to show them how this digital currency is used in everyday life. If it’s as easy as scanning a QR code, let them do it! 
  • Get ready for Sesame Street to teach your kids about coding and blockchain.
  • Watch Billy’s Bitcoin cartoons on YouTube together. 
  • Introduce Minecraft to your kids where they can earn “bits” (small units of bitcoin) and spend them on in-game purchases for classes and additional gaming content. 
  • Let your kids watch you conduct a trade on Paxful. Then for your next trade, ask them to help you find a trustworthy vendor to trade with. 
  • Send your kid to a high school in Francebitcoin is officially part of the syllabus for economics and social sciences!

Cryptocurrency for kids is the future

Very soon, bitcoin may pervade every aspect of life, so prepare your children for a major change in the financial landscape. Try using games, TV shows, and other real-life examples mentioned above to introduce bitcoin to your children. 😉

How have you been teaching your kids about bitcoin? Let us know in the comments below!

The post 3 Clever Ways Paxful Moms Talked Bitcoin With Their Kids appeared first on The Paxful Blog.

Continue Reading 3 Clever Ways Paxful Moms Talked Bitcoin With Their Kids

Palm Oil Business – How to Start Palm Oil Business In Nigeria

The palm oil business is one of the lucrative businesses in Nigeria because of its diverse usefulness and the huge profit involved. In Nigeria, palm oil is one of the essential needs for cooking most meals. The interesting part of this business is that every part of the palm tree (fruits, leaves, trunks, and sap) is used for different things.

See Also: How to start Pure and Bottled Water Business in Nigeria

The palm fruits are processed to produce palm oil, the leaves on the other hand are used for roofing homes in rural areas. While the popular palm wine which is the sap is a refreshing and widely loved beverage in Nigeria.

Gone are the days when people think that the only sector to make cool money in Nigeria is oil and gas. Nowadays, industries that are being overlooked are the ones raking in huge profits for the business owners.

An aspiring entrepreneur must be able to look wide and deep when investing in a business. Not long ago, Nigeria was the third-largest producer of palm oil, with over 2.3million hectares (5.7×106 acres) under cultivation.

This article covers everything you need to know about starting and running a successful palm oil business in Nigeria. Additionally, you will also learn about the different areas of the palm oil business so you can choose the best that works for you depending on your start-up capital.

See Also: How to start Mini-Importation Business in Nigeria

Palm Oil Business Defined

Palm oil is an edible vegetable oil derived from the fruit of palm trees and it is reddish in colour. It is a native oil with rich components found in Nigeria and some parts of Africa. Palm oil can thicken when you store it in a cool place for a long time.

See Also: How to start Poultry Farming Business in Nigeria

Uses Of Palm Oil

A lot of people know palm oil to be used for cooking. Asides from being used for cooking, palm oil can be used for:

  • Prevention of vitamin A deficiency, cancer, brain disease, and aging
  • Production of soap, cosmetic, body cream, exfoliation cream, margarine, etc
  • Release of stomach pain
  • Production of drugs
  • Treating malaria, high blood pressure, high cholesterol, dementia, etc
  • Weight loss and for increasing the body’s metabolism
  • Water treatment
  • Production of dog and other domestic animal food
  • Preservation of food

See Also: How To Start E-Commerce Business in Nigeria

Requirements needed to start Palm Oil Business

The basic things you need to start this business are:

Capital

This is the money you need to begin your palm oil business. The cost to be factored into your capital should include:

  • Land acquisition or land rental cost
  • Cost of hiring employees
  • Farm maintenance cost
  • Cost of purchasing the seedlings
  • Processing machine cost
  • Cost of means of storage
  • Transportation cost

See Also: 100 profitable business ideas to start in Nigeria

Land

The scope of your business will determine the size of land to acquire. It could be a few acres of land or hectares of land.

See Also: 10 Business ideas to start with 100k

Labor

Here, you may need to hire people to assist you in doing the processing. However, you may go for part-time staff who will only work at different stages of the business.

For instance, you may need a tractor operator to clear the land, then hire other people for the planting process. And during harvest, you can hire workers for harvesting.

See Also: How To Start A Cleaning Service Company In Nigeria

How Profitable Is Palm Oil Business?

The palm oil yield per hectare is estimated at 8 tons per year at most. Additionally, the profit farmers make per hectare is around 3.4tons per year.

There are other factors that also affect the profitability of your palm oil business such as the effect of pests and other diseases. Hence, this should be taken into consideration because it can affect the overall profit of your business.

Importantly, the age of the palm tree also has an effect on the yield. Normally, the peak production period of oil palm plantation is between seven (7) and eighteen (18) years after which it started to decline.

See Also: How to start Printing Business In Nigeria

Steps To Starting Palm Oil Business

Step One: Choose The Palm Oil Business You Want To Invest In

Typically, there are three main types of palm oil business you can invest in. If you have the required capital, you can invest in the three. Otherwise, you can invest in one or two of the types explained below:

1. Palm Tree Plantation

Palm tree plantation is capital intensive and it requires patience. If you want to start earning from palm oil business immediately, this may not be the best option for you.

In this type of palm oil business, you will need to acquire a large expanse of land. Importantly, the soil must be tested to be sure it is appropriate for palm tree plantation. The land and type of soil used in planting and cultivating the palm affect the quality of the fruits.

See Also: Cheap Ways To Promote Your Business As An Entrepreneur

The location of the land is also important for easy access to customers. The incubation period after plantation of the palm trees can take five to ten years before harvesting. After harvesting, you can either sell the palm oil kernel seeds to those processing it or you set up a mill to extract the palm oil.

To plant, you will have to buy seedlings. Usually, one seedling in Nigeria costs N150 and you will need at least 1000 seedlings for a start. Importantly, ensure you give at least 8-9 meters space between two plants.

See Also: Top 20 Business Blogs In Nigeria Every Business Owner Should Follow

2. Set Up A Palm Oil Extraction Mill

The second type of palm oil business is the setting up of palm oil extraction mill. This is also capital intensive but not as expensive as palm tree plantation. All you need to begin is the installation of palm oil milling machines for the processing of the palm oil kernel seeds.

Basically, you can either use the milling machines for personal or commercial processing. You can rent out the machine to people who want to process their palm kernel. You can make cool cash from this business
if you are positioned in an environment where the machine is usually needed.

One thing to note however is that palm oil has its season. The peak season is between January to May. So, you may not make so much money during the off-season which is around July to December.

Alternatively, you can install the milling machine for your personal use, process the palm oil kernel, and sell the palm oil to consumers or resellers.

To process for yourself, you need to purchase the palm kernel in large quantities from harvesters and process them into palm oil in your mill, then sell to retailers.

See Also: 12 Eco-Friendly Business Ideas That Can Make You Wealthy.

3. Sales Of Palm Oil

Most palm oil business owners invest in this type of palm oil business because it is the cheapest and easiest part of the business. This business involves the buying of palm oil in large quantities and selling to consumers.

To get more profit from this business, you can store the palm oil in a cool place for months, then sell them during off pick period when the supply of palm oil has reduced and demand is high.

This guide will focus on this area of palm oil business.

See Also: Side Hustle Business Ideas You Can Start To Earn Extra Cash.

Step Two: Draft A Business Plan

As soon as you’ve selected your palm oil business niche, draft out a business plan that will guide your business transaction. While writing your business plan, you need to carry out a thorough feasibility study and market research to understand the nature of the business.

Learn about your competitions, the prevailing prices, and how and where to buy palm oil at a cheap rate. A business plan is a detailed document stating the short and long term objectives of your business and how to achieve them.

In writing your business plan, the following information should be included:

  • Executive Summary
  • Company Description
  • Team
  • SWOT Analysis
  • Market Analysis
  • Financial Analysis
  • Marketing Strategies
  • Competitive Analysis
  • Appendix

See Also: How To Write A Business Plan Step By Step For Your Business

Step Three: Register Your Palm Oil Business With CAC

At entrepreneurs.ng, we encourage aspiring entrepreneurs to structure their business as soon as they begin. The first step to structuring your business is to register it with CAC. There are several benefits you stand to gain when you register your business. One of them is that you can open a corporate account where customers can pay into.

Additionally, registering your business makes your customers trust you. To begin, run a name search on CAC’s portal to confirm if your chosen name has not been registered by another person. Thereafter, you can begin the registration process. With basic information like valid ID card, passport photograph, signature and personal details, you are good to go.

Alternatively, you can hire a lawyer to help you register it. One of the recommended firms that can help you speed up the registration process is ReDahlia, located at 43B, Emina crescent off Toyin Street, Ikeja, Lagos.

See Also: Top Legal Documents Every Entrepreneur And Start-Up Should Have

Step Four: Set Up A Storage Space

The next step is to set up storage space. Ensure the space is cool, safe, and dry. Rent a space or a room where you can store the palm oil while you wait for the right time to sell. Additionally, you will need to purchase kegs or drums to store your oil. Most times, people go for the 25litre yellow kegs.

See Also: Creative Business Ideas For Fresh Graduates In Nigeria

Step Five: Arrange With Suppliers

In case you are not the one producing the palm oil, you will need to have a solid arrangement with suppliers you can purchase from. If you carry out step two well, you will have the right knowledge suppliers to source your product from.

There are states in Nigeria that are known for producing palm oil in large quantities. Although there are several other states that produce palm oil, these states are seen as the largest producers of quality palm oil in Nigeria.

  • Delta State
  • Akwa-Ibom State
  • Cross-River State
  • Bayelsa State
  • Imo State
  • Rivers State
  • Ondo State
  • Abia State

You can visit the various states to connect with suppliers of the best palm oil.

See Also: Service Based Business Ideas To Start For Entrepreneurs

Step Six: Find A Good Means of Transportation

If you don’t know the right mode of transportation to use in transporting your goods, you may end up incurring huge costs that will affect your profit.

Hence, compare prices with several commercial carriers before settling for one. The easiest approach is to ask your supplier to suggest the cheapest, reliable, and safest mode of transportation to you as they’ve been in the system way before you. But, if you have your personal or company vehicle, you will not have a challenge with this step.

See Also: Home Business Ideas – 10 Profitable Home Business Ideas To Invest In

Step Seven: Source For Customers

The efforts you put into steps one to five will go to waste if this step is not effective. You need a solid marketing plan which should be part of your business plan to succeed in this business.

As a matter of fact, it is better to source for your would-be retailers before buying or processing your palm oil. This will give you a ready market when you are ready to sell.

You can find retailers amongst market sellers, cosmetologists, housewives, etc. To attract a larger customer base, you can explore other modes of marketing such as:

  • Online marketing (social media, google ad, etc)
  • Referral marketing
  • Newspaper marketing
  • Word of mouth
  • Collaboration/Partnership

Furthermore, you can also export palm oil as some international countries may have the need for palm oil, and Nigeria is known for its quality palm oil.

If you are considering exportation, one of the trusted place to find international buyers is Alibaba.com, a website known for connecting suppliers or manufacturers with buyers. Vconnect is equally a good place to try.

Apart from Alibaba and Vconnect, run thorough research for other platforms that can aid your palm oil exportation and go through our content on how to run an export business.

Finally, there are companies in Nigeria that buy palm products. Some of them include:

Phemson Nigeria Limited

A Lagos company involved in the purchase of palm oil and palm oil processing equipment.

Planet Oil and Chemical Industries Ltd

This is another palm oil buying company located in Abia State. They also buy palm kernel oil as well.

Sunny Oil Nigeria Ltd

This company is located at Mushin, Lagos. They also purchase palm oil products and palm kernel oil.

OM Oil Industries Ltd

Another palm oil buying company located in Ikeja, Lagos.

See Also: 14 Small Business Ideas For Entrepreneurs In Lagos

In conclusion, you cannot go wrong with palm oil business if you dutifully follow the steps highlighted in this article. As with every business idea we discuss on this platform, you can not substitute hard work and persistence. Work hard and stay the course, success will come.

Do you run a palm oil business and will like to share some insights? Do you want to start a palm oil business in Nigeria? We will like to read from you in the comments.

Are you doing something extra-ordinary in your industry and you want the world to hear about it? Reach out to us today to tell your story.

All the best!

The post Palm Oil Business – How to Start Palm Oil Business In Nigeria appeared first on Entrepreneurs In Nigeria.

Continue Reading Palm Oil Business – How to Start Palm Oil Business In Nigeria

New Pinterest Tools for Marketers

Welcome to this week’s edition of the Social Media Marketing Talk Show, a news show for marketers who want to stay on the leading edge of social media. On this week’s Social Media Marketing Talk Show, we explore Pinterest’s new shopping capabilities, Verified Merchant Program, and new marketing tools with special guest, Jennifer Priest. Tune […]

The post New Pinterest Tools for Marketers appeared first on Social Media Marketing | Social Media Examiner.

Continue Reading New Pinterest Tools for Marketers

Tips on Getting Drawing Ideas & Mastering Techniques With Apps

My close friend and I love to draw, we share drawing ideas and help each other when we are stuck on a certain technique like shading or perception. But we don’t always have the answer and can spend a lot of time browsing the Internet for drawing ideas or ways to improve our techniques. Recently, […]

The post Tips on Getting Drawing Ideas & Mastering Techniques With Apps appeared first on Oasdom.

Continue Reading Tips on Getting Drawing Ideas & Mastering Techniques With Apps

Using Facebook Ads in Uncertain Times

Wondering if you should make changes to your Facebook ads strategy? Looking for tips to guide your decision-making during times of uncertainty? To explore how to navigate Facebook advertising during the COVID-19 pandemic, I interview Amanda Bond on the Social Media Marketing Podcast. Amanda is a Facebook ads expert and founder of The Ad Strategist. […]

The post Using Facebook Ads in Uncertain Times appeared first on Social Media Marketing | Social Media Examiner.

Continue Reading Using Facebook Ads in Uncertain Times