Charcoal Production Business Plan .

Okay, so we have considered all the requirements for starting a charcoal production business. We
also took it further by analyzing and drafting a sample charcoal briquettes marketing plan
template backed up by actionable guerrilla marketing ideas for charcoal production businesses.
So let’s proceed to the business planning section.

When it comes to starting a new business, one easy to set up business that requires to a very large
extent low start – up capital which an aspiring entrepreneur who is looking towards starting a
business can start is charcoal production and distribution company.

All you need to do to launch this type of business is to register the business, secure a shop and
then have a steady supply of coal, et al. This type of business is suitable for locations where
residents use more of coal stoves than kerosene stoves, gas cookers or electric cooker.

One other thing that you ought to have in mind is that you have to undertake an exhaustive
market research and feasibility studies. Why is this so?

Well, this is especially so because you will need all the information you can get to build a
standard and profitable coal production and distribution business. Below is a sample charcoal
production and distribution company business plan that will guide you towards crafting yours
with little or no stress;

A Sample Charcoal Briquettes Production Business Plan

Template

1. Industry Overview

Charcoal basically is a type of flammable fuel commonly burned as an energy source for stoves
and furnaces et al. Coal is also primarily used for electricity generation and steel production. For
the purpose of this business plan, we will be concentrating on coal that is used for cooking via
coal stoves and furnaces.

Coal stove is used mainly in communities where people can’t afford cooking gas or as an
alternative to cooking gas; in places where it is highly suitable to make use of coal as a burning
fuel as against cooking gas or even kerosene. In rural areas in Nigeria and in most African and
Asia countries, coal stoves are popular because it is cheaper to afford when compared to a gas
cooker or kerosene stoves.
In Nigeria for instance, it is easier, convenient and cheaper to find entrepreneurs who into the
sale of barbecue, bean cake, fried or roasted yam and plantain, the sale of cooked or roasted
corns, and even people who run roadside canteen make use of coal as a burning fuel (coal
stoves).

This is the reason why coal production and distribution business is a thriving business enterprise
in developing and underdeveloped countries scattered all across Africa, Asia and South America.

The coal production and distribution line of business for the purpose of cooking is indeed a
thriving line of business and pretty much active in Africa, Asia and South America they
generates several millions of US dollars annually from several registered and unregistered small
– scale, medium scale and big coal production and distribution business scattered all around
Africa, Asia and South America.

This line of business is responsible for the employment loads of people directly and indirectly all
around the world. Any aspiring entrepreneur who is considering starting coal production and
distribution business whether on a small scale or on a large scale should ensure that he or she
conducts an exhaustive market survey and feasibility studies so as to get it right.

The truth is that, this type of business do pretty well when it is strategically positioned. Places
where there are loads of poor people and low income earners are also ideal for this type of
business.

Over and above, coal production and distribution business is a profitable business venture and it
is open for any aspiring entrepreneur to come in and establish his or her business; you can chose
to start on a small scale with just a shop in a street corner or if you have the capital and business
exposure, then you can chose to start on a large scale producing charcoal not for the Nigerian
market, but for international market as well via exportation.

2. Executive Summary

Philip Okonkwo Charcoal Production & Distribution Company is a standard charcoal production
and distribution business that will be based in Enugu – Enugu State, Nigeria. We are registered
under the Nigerian Corporate Affairs Commission (CAC).

Although we intend starting out from a small shop servicing businesses and household in an
around Enugu City, but that will not in any way stop us from maximizing our potential in the
charcoal production and distribution line of business.

We hope to grow the business beyond Enugu – Enugu State to other cities in Nigeria and also
other nations of the world. Our business goal as a charcoal production and distribution company
is to become the number one choice of businesses and household in Nigeria and also to
international merchants who are into the exportation of charcoals from Nigeria to other countries
of the world.
As a business, we are willing to go the extra mile to invest in building a standard charcoal
production and distribution company that won’t in any way go against the law of the Nigeria and
also to hire efficient and dedicated employees. We have been able to secure permits from all
relevant departments both at local government level, state level and national level.

Philip Okonkwo Charcoal Production & Distribution Company is set to redefine how standard
charcoal production and distribution business should be run, not just in Enugu – Enugu State, but
also in the whole of the Nigeria. This is why we have put plans in place for continuous training
of all our staff at regular interval.

No doubt the demand for charcoal is not going to plummet any time soon because there will
always be people who can’t afford gas cooker, kerosene and electric stoves et al, which is why
we have put plans in place to continue to explore all available market around the communities
where we intend retailing our charcoal.

In the nearest future, we will ensure that we create a wide range of distribution channels all
across Nigeria and the global market. With that, we know we will be able to maximize profits in
our business.

Our strongest selling point at Philip Okonkwo Charcoal Production & Distribution Company is
the unique distribution channels. There is hardly any customer that will purchase our charcoal
who would not want to come back and make more purchase – we take delight in welcoming
repeat customers over and over again.

Philip Okonkwo Charcoal Production & Distribution Company will at all-time demonstrate her
commitment to sustainability, both individually and as a firm, by actively participating in our
communities and integrating sustainable business practices wherever possible.

We will ensure that we hold ourselves accountable to the highest standards by meeting our
customers’ needs precisely and completely. We will cultivate a working environment that
provides a human, sustainable approach to earning a living, and living in our world, for our
partners, employees and for our customers.

Our plan is to position Philip Okonkwo Charcoal Production & Distribution Company to become
the leading brand in the charcoal production and distribution line of business.

This might look too tall a dream but we are optimistic that this will surely come to pass because
we have done our research and feasibility studies and we are enthusiastic and confident that
Enugu – Enugu State which is also known as the Coal City is the right place to launch this type
of business before spreading to other cities in Nigeria.

Philip Okonkwo Charcoal Production & Distribution Company is a family business that will be
owned by Mr. Philip Okonkwo and his immediate family members.

Mr. Philip Okonkwo is an astute business man who has been able to start and grow several
businesses before starting Philip Okonkwo Charcoal Production & Distribution Company. He
has a degree in business administration from the University of Nigeria Nsukka and also an
alumnus of Lagos Business School.

3. Our Products and Services

We are very much aware of the importance of having very good products and services. This is
one of the reasons why we have made great plans to have the best of products and services. At
Philip Okonkwo Charcoal Production & Distribution Company we produce and distribute / retail
charcoal all across Nigeria and the international market.

Our intention of starting Philip Okonkwo Charcoal Production & Distribution Company is to
make profits from the Charcoal production and distribution line of business and we will do all
that is permitted by the law in Nigeria to achieve our business aim and ambition.

4. Our Mission and Vision Statement

Our vision as a charcoal production and distribution business is to become the leading company
in this line of business in Nigeria.

Our mission is to build a highly profitable and thriving charcoal production and distribution
company whose products can be found all across major cities in Nigeria. We want to build a
business that will be one of the biggest exporters of charcoal from Africa to other parts of the
world.

Our Business Structure

Ordinarily, we would have succeeded in running a charcoal production and distribution business
with few employees, but as part of our plan to build a top flight national charcoal production and
distribution business in Enugu – Enugu State, we have perfected plans to get it right from the
onset which is why we are going the extra mile to ensure that we have competent employees to
occupy all the available positions in our company.

The picture of the kind of charcoal production and distribution business we intend building and
the business goals we want to achieve is what informed the amount we are ready to spend to
ensure that we build a standard business, dedicated workforce and robust distribution network.

In view of that, we have decided to hire qualified and competent hands to occupy the following
positions at Philip Okonkwo Charcoal Production & Distribution Company;

 Chief Executive Officer (Owner)

 Charcoal Production and Distribution Manager
 Human Resources and Admin Manager
 Sales and Marketing Officer
 Merchandize Manager
 Accountants/Cashiers
 Casual Workers
  Truck Drivers/Coal Distributors
 Customer Service Executives

5. Job Roles and Responsibilities

Chief Baker/Chief Executive Officer – CEO (Owner):

 Increases management’s effectiveness by recruiting, selecting, orienting, training,

coaching, counseling, and disciplining managers; communicating values, strategies, and
objectives; assigning accountabilities; planning, monitoring, and appraising job results;
developing incentives; developing a climate for offering information and opinions;
providing educational opportunities.
 Creates, communicates, and implements the organization’s vision, mission, and overall
direction – i.e. leading the development and implementation of the overall organization’s
strategy.
 Responsible for fixing prices and signing business deals
 Responsible for providing direction for the business
 Creates, communicates, and implements the organization’s vision, mission, and overall
direction – i.e. leading the development and implementation of the overall organization’s
strategy.
 Responsible for signing checks and documents on behalf of the company
 Evaluates the success of the organization

Charcoal Production and Distribution Manager

 Responsible for overseeing the smooth running of the charcoal production and
distribution plant
 Makes sure that quality is maintained at all times
 Maps out strategy that will lead to efficiency amongst workers in the charcoal production
and distribution plant
 Responsible for training, evaluation and assessment of the workforce
 Ensures operation of equipment by completing preventive maintenance requirements;
calling for repairs.
 Ensures that the charcoal production and distribution plant meets the expected safety and
health standard at all times.

Human Resources and Admin Manager

 Responsible for overseeing the smooth running of HR and administrative tasks for the
organization
 Updates job knowledge by participating in educational opportunities; reading
professional publications; maintaining personal networks; participating in professional
organizations.
 Enhances department and organization reputation by accepting ownership for
accomplishing new and different requests; exploring opportunities to add value to job
accomplishments.
  Defines job positions for recruitment and managing interviewing process
 Carries out staff induction for new team members
 Responsible for training, evaluation and assessment of employees
 Oversees the smooth running of the daily business activities.

Merchandize Manager

 Manages vendor relations, market visits, and the ongoing education and development of
the organizations’ buying teams
 Helps to ensure consistent quality and quantity of charcoal
 Responsible for the purchase of materials that needed in the production of charcoal
 Responsible for planning sales, monitoring inventory, selecting the merchandise, and
writing and pricing orders to vendors
 Ensures that the organization operates within stipulated budget.

Sales and Marketing Manager

 Manages external research and coordinate all the internal sources of information to retain
the organizations’ best customers and attract new ones
 Models demographic information and analyze the volumes of transactional data
generated by customer purchases
 Identifies, prioritize, and reach out to new partners, and business opportunities et al
 Responsible for supervising implementation, advocate for the customer’s needs, and
communicate with customers
 Develops, executes and evaluates new plans for expanding increase sales
 Documents all customer contact and information
 Represents the company in strategic meetings
 Helps to increase sales and growth for the company

Casual Workers

 Responsible for the production of charcoal

 Responsible for carrying out all casual or unskilled jobs in the charcoal production and
distribution plant
 Assists in loading and unloading of charcoal meant for distribution
 Handles any other duty as assigned by the charcoal production and distribution manager

Accountant / Cashier

 Responsible for preparing financial reports, budgets, and financial statements for the
organization
 Provides managements with financial analyses, development budgets, and accounting
reports; analyzes financial feasibility for the most complex proposed projects; conducts
market research to forecast trends and business conditions.
 Responsible for financial forecasting and risks analysis.
 Performs cash management, general ledger accounting, and financial reporting
  Responsible for developing and managing financial systems and policies
 Responsible for administering payrolls
 Ensures compliance with taxation legislation
 Handles all financial transactions for the organization
 Serves as internal auditor for the organization

Distribution Truck Drivers

 Assist in loading and unloading charcoal

 Maintain a logbook of their driving activities to ensure compliance with federal
regulations governing the rest and work periods for operators.
 Keep a record of vehicle inspections and make sure the truck is equipped with safety
equipment
 Assist the transport and logistics manager in planning their route according to a delivery
schedule.
 Local-delivery drivers may be required to sell products or services to stores and
businesses on their route, obtain signatures from recipients and collect cash.
 Transport finished goods and raw materials over land to and from manufacturing plants
or retail and distribution centers
 Inspect vehicles for mechanical items and safety issues and perform preventative
maintenance
 Comply with truck driving rules and regulations (size, weight, route designations,
parking, break periods etc.) as well as with company policies and procedures
 Collect and verify delivery instructions
 Report defects, accidents or violations

Client Service Executive

 Ensures that all contacts with customer (e-mail, walk-In center, SMS or phone) provides
the client with a personalized customer service experience of the highest level
 Through interaction with customers on the phone, uses every opportunity to build client’s
interest in the company’s products and services
 Manages administrative duties assigned by the store manager in an effective and timely
manner
 Consistently stays abreast of any new information on Philip Okonkwo Charcoal
Production & Distribution Company products, promotional campaigns etc. to ensure
accurate and helpful information is supplied to customers when they make enquiries

6. SWOT Analysis

Due to our drive for excellence when it comes to running a standard charcoal production and
distribution business, we were able to employ some of the finest business consultants in Enugu
State – Nigeria to look through our business concept .
Together we were able to critically examine the prospect of the business and to access ourselves
to be sure we have what it takes to run a standard charcoal production and distribution business
that can compete favorably in the charcoal production and distribution line of business.

In view of that, we were able to take stock of our strengths, our weakness, our opportunities and
also the threats that we are likely going to be exposed to in Enugu – Enugu State, Nigeria and
also in other cities that we intend retailing our charcoal.

Here is a of what we got from the critically conducted SWOT Analysis Philip Okonkwo
Charcoal Production & Distribution Company;

 Strength:

Our strength lies in the fact that we produce and distribute charcoals all across major cities in
Nigeria and we also export charcoal. We have state of the art charcoal production facility and
equipment that has positioned us to meet the demand of charcoal in Nigeria even if the demand
tripled overnight or if we have a massive order to meet and emergency need.

Another factor that counts to our advantage is the background of our Chief Executive Office; he
has a robust experience in the industry and also a pretty good academic qualification to match the
experience acquired which has placed her amongst the top flight business men in Nigeria.

We are not ignoring the fact that our team of highly qualified and dedicated workers will also
serve as strength for our organization.

 Weakness:

We do not take for granted the facts that we have weaknesses. In fact, the reality that we are
setting up a coal production and distribution business in a city with other smaller and larger
charcoal retailing businesses might likely pose a challenge for us in breaking into the already
saturated market in Enugu – Enugu State.

In essence our chosen location might be our weakness. But never the less, we have plans to
launch out with a big bang. We know with that, we will be able to create a positive impression
and we have a proper handle when it comes to building on already gather momentum.

 Opportunities:

The opportunities available to us are unlimited. Loads of people make use of coal stoves and
purchase charcoal on a daily basis and all what we are going to do to push our push our coal to
them is already perfected.

Enugu and other similar towns in Nigeria is just ideal for coal production and distribution
business because loads of people who resides in this locations and businesses make use of coal
stoves as against gas cookers, kerosene stoves or electric stoves hence there is a large market for
coal.

 Threat:

The threat that is likely going to confront may be in the area of competing with already
established charcoal production and distribution businesses in Enugu – Enugu State and also
there are other entrepreneurs who are likely going to launch similar business within the location
of our business.

Of course, they will compete with us in winning over the available market. Another threat that
we are likely going to face is unfavorable government policies and economic downturn. Usually
economic downturn affects purchasing / spending powers.

7. MARKET ANALYSIS

 Market Trends

It is common trend in the charcoal production and distribution business to find charcoal retailers
positioning their business in locations and communities where the average households make use
of coal stoves as against gas cookers, kerosene stoves or electric stoves.

If you make the mistake of positioning this type of business in highbrow areas, you are going to
struggle to make headway in the business. Lastly, in the bid to stay afloat and continue to make
profits from this line of business, most people that retail charcoal tends to look beyond the
market in their immediate community to international market.

This is why you will find standard charcoal production and distribution companies engage in
exporting charcoal to other countries of the world where the demand of quality coal is high.

8. Our Target Market

When it comes to retailing charcoal, there is indeed a wide range of available customers. In
essence, our target market can’t be restricted to just a group of people, but all those who make
use of coal stoves or coal furnace. One thing is certain there are no restrictions to the
demographic and psychographics composition of the target market for charcoal.

This goes to show that the target market for charcoal is wide and far reaching, you can create
your own make niche yourself to serve a specific purpose. In view of that, we have conducted
our market research and we have ideas of what our target market would be expecting from us.

We are in business to engage in retailing and wholesale distribution of charcoal to the following
groups of people;

 Households who make use of coal stoves for cooking

 Restaurants and canteens that make use of coal stoves for cooking
  Entrepreneurs who are into the sale of Barbeque, Bean cake , fried or roasted yam and
plantain, the sale of cooked or roasted corns, and even people who run roadside canteen
make use of coal as a burning fuel (coal stoves)
 Outdoor Caterers who make use of coal stoves
 Small scale charcoal retailing business.

Our Competitive Advantage

First and foremost, the fact that anybody with a business cum retailing skills and the required
start – up capital can decide to start charcoal production and distribution business means that the
business is open to all and sundry hence it is expected that there will be high – level competition
in the industry.

There is hardly any busy community or even street that you won’t find one or more people
retailing charcoal especially on a small scale level.

As a standard charcoal production and distribution company, we know that gaining a competitive
edge requires a detailed analysis of the demographics of the surrounding area and the nature of
existing competitors. And even if you are successful at first, new competitors could enter your
market at any time to steal your regular customers.

Hence we will not hesitate to adopt successful and workable strategies from our competitors. We
are going to be one of the very few charcoal production and distribution companies in Enugu –
Enugu State that will also engage in wholesale distribution and exportation of coal.

Another competitive advantage that we have is the vast experience of our management team, we
have people on board who are highly experienced and understands how to grow business from
the scratch to becoming a national phenomenon.

Our large and robust distribution network and of course our excellent customer service culture
will definitely count as a strong strength for the business. One thing is certain, we will ensure
that in future, we open our outlets in various cities not just in Enugu State, but also all across
Nigeria.

With that our brand will be well communicated and accepted nationally. Lastly, our employees
will be well taken care of, and their welfare package will be among the best within our category
(startups charcoal production and distribution companies) in the industry, meaning that they will
be more than willing to build the business with us and help deliver our set goals and achieve all
our aims and objectives.

We will also give good working conditions and commissions to freelance sales agents that we
will recruit from time to time.

9. SALES AND MARKETING STRATEGY

 Sources of Income
Philip Okonkwo Charcoal Production & Distribution Company is established with the aim of
maximizing profits in the charcoal production and distribution line of business both in Enugu
State and throughout key cities in Nigeria and we are going to go all the way to ensure that we do
all it takes to sell our charcoal both in retail and wholesale to a wide range of customers who
make use of coal stoves and coal furnace et al.

Philip Okonkwo Charcoal Production & Distribution Company will generate income by simply
selling charcoal; we are in the charcoal production and distribution line of business to retail
charcoal to households, businesses and small scale charcoal retailing business.

10. Sales Forecast

One thing is certain when it comes to charcoal production and distribution business, if your shop
is centrally positioned and easily accessible in a place where the average household make use of
coal stoves, you will always attract customers cum sales and that will sure translate to increase in
revenue generation for the business.

We are well positioned to take on the available market in Enugu – Enugu State and every other
state in Nigeria where our charcoal will be sold and we are quite optimistic that we will meet our
set target of generating enough income / profits from the first six month of operations and grow
the business and our clientele base.

We have been able to critically examine the charcoal production and distribution line of business
and we have analyzed our chances in the industry and we have been able to come up with the
following sales forecast. The sales projections are based on information gathered on the field and
some assumptions that are peculiar to startups in Enugu State – Nigeria.

Below are the sales projections for Philip Okonkwo Charcoal Production & Distribution
Company, it is based on the location of our business and other factors as it relates to small scale
and medium scale charcoal production and distribution company start – ups in the Nigeria;

 First Fiscal Year-: N240,000

 Second Fiscal Year-: N550,000
 Third Fiscal Year-: N1 Million

N.B: This projection is done based on what is obtainable in the industry and with the assumption
that there won’t be any major economic meltdown and there won’t be any major competitor
offering same product and customer care services as we do within same location. Please note that
the above projection might be lower and at the same time it might be higher.

 Marketing Strategy and Sales Strategy

Before choosing a location to launch Philip Okonkwo Charcoal Production & Distribution
Company, we conduct a thorough market survey and feasibility studies in order for us to be able
to be able to penetrate the available market in Enugu – Enugu State and other cities where we
intend positioning our business.
We have detailed information and data that we were able to utilize to structure our business to
attract the numbers of customers we want to attract per time and also for to compete with other
kerosene retailing business.

We hired experts who have good understanding of the charcoal production and distribution line
of business to help us develop marketing strategies that will help us achieve our business goal of
winning a larger percentage of the available market in Enugu State and Nigeria at large.

In other to continue to be in business and grow, we must continue to sell our charcoal to the
available market which is why we will go all out to empower or sales and marketing team to
deliver our corporate sales goals. In summary, Philip Okonkwo Charcoal Production &
Distribution Company will adopt the following sales and marketing approach to sell our
charcoal;

 Introduce our charcoal production and distribution business by sending introductory

letters to residence, merchants and other stakeholders both in Enugu State and other states
in Nigeria.
 Open our charcoal production and distribution business with a party so as to capture the
attention of residence who are our first targets
 Engage in road show in targeted communities  all around Enugu – Enugu State from time
to time to sell our products
 Advertise our products in community based newspapers, local TV and radio stations
 List our business and products on yellow pages ads  (local directories)
 Leverage on the internet to promote our charcoal production and distribution business
 Engage in direct marketing and sales
 Encourage the use of Word of mouth marketing (referrals)

11. Publicity and Advertising Strategy

Regardless of the fact that our charcoal production and distribution business is a standard one
that can favorably compete with other leading charcoal production and distribution business in
Nigeria as a whole, we will still go ahead to intensify publicity for all our products and brand.

We are going to explore all available means to promote Philip Okonkwo Charcoal Production &
Distribution Company. Philip Okonkwo Charcoal Production & Distribution Company has a
long term plan of opening outlets in various locations all around Enugu State and other key cities
in Nigeria which is why we will deliberately build our brand to be well accepted in Enugu –
Enugu State before venturing out to other cities in Nigeria.

As a matter of fact, our publicity and advertising strategy is not solely for selling our products
but to also effectively communicate our brand. Here are the platforms we intend leveraging on to
promote and advertise Philip Okonkwo Charcoal Production & Distribution Company;

 Place adverts on both print (community based newspapers and magazines) and electronic
media platforms
 Sponsor relevant community programs
  Leverage on the internet and social media platforms like; Instagram, Facebook , twitter,
et al to promote our brand
 Install our Bill Boards on strategic locations all around major communities in Enugu
State
 Engage in road show from time to time in targeted communities
 Distribute our fliers and handbills in target areas in Enugu State
 Position our Flexi Banners at strategic positions in the location where we intend getting
customers to start patronizing our charcoal
 Ensure that all our staff members wear our customized clothes, and all our official cars
and distribution trucks are customized and well branded.

12. Our Pricing Strategy

When it comes to pricing for products such as charcoal, there are no hard and fast rules, the
prices depend on the container or sack in which the coals are placed in.

In view of that, our prices will conform to what is obtainable in the industry but will ensure that
within the first 3 to 6 months our charcoal are sold a little bit below the average prices when
compared to other charcoal retailing businesses in Enugu State – Nigeria.

We have put in place business strategies that will help us run on low profits for a period of 6
months; it is a way of encouraging people to buy into our brands.

 Payment Options

The payment policy adopted by Philip Okonkwo Charcoal Production & Distribution Company
is all inclusive because we are quite aware that different customers prefer different payment
options as it suits them but at the same time, we will ensure that we abide by the financial rules
and regulation of the Federal Republic of Nigeria.

Here are the payment options that Philip Okonkwo Charcoal Production & Distribution
Company will make available to her clients;

 Payment via bank transfer

 Payment with cash
 Payment via online bank transfer
 Payment via mobile money platform
 Payment via Point of Sale Machine (POS machines)
 Payment via check
 Payment via bank draft
In view of the above, we have chosen banking platforms that will enable our client make
payment for farm produces purchase without any stress on their part. Our bank account numbers
will be made available on our website and promotional materials to clients who may want to
deposit cash or make online transfer for the purchase of charcoal in wholesale.

13. Startup Expenditure (Budget)

In setting up any business, the amount or cost will depend on the approach and scale you want to
undertake. If you intend to go big by renting a place, then you would need a good amount of
capital as you would need to ensure that your employees are well taken care of, and that your
facility is conducive enough for workers to be creative and productive.

This means that the start-up can either be low or high depending on your goals, vision and
aspirations for your business.

The tools and equipment that will be used are nearly the same cost everywhere, and any
difference in prices would be minimal and can be overlooked. As for the detailed cost analysis
for starting a charcoal production and distribution business; it might differ in other countries due
to the value of their money.

We know that no matter where we intend starting our kerosene retailing business, we would be
required to fulfill most of the items listed below;

 The Fee for registering the business (venture) in Lagos State – Nigeria – N15,000
 Legal expenses for obtaining licenses and permits as well as the accounting services
(software, P.O.S machines and other software) – N30,000
 Marketing promotion expenses for the grand opening of Mama Mabel Kerosene Ventures
– N15,000
 Cost for hiring Business Consultant – N20,000
 Insurance (general liability, workers’ compensation and property casualty) coverage at a
total premium – N20,000
 Cost for payment of rent for 12 month and renovation inclusive – N24,000
 Other start-up expenses including stationery and phone and utility deposits – N5,000
 Operational cost for the first 3 months (salaries of employees, payments of bills et al) –
N200,000
 The cost for Start-up inventory (charcoal supply and bagging materials et al)  – N120,000
 Cost for store equipment (cash register, security, ventilation, signage) – N10,000
 Cost of purchase of distribution trucks – N450,000
 The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, Fax
Machines, tables and chairs et al) – N15,000
 The cost of Launching a Website – N25,000
 The cost for our opening party – N10,000
 Miscellaneous – N10,000
We would need an estimate of N750, 000 to successfully set up a standard and world class
charcoal production and distribution company. Please note that this amount includes the salaries
of all the staff for the first 3 month of operation.

Generating Funding / Startup Capital for Philip Okonkwo Charcoal Production &
Distribution Company

No matter how fantastic your business idea might be, if you don’t have the required money to
finance the business, the business might not become a reality. Finance is a very important factor
when it comes to starting a business such as charcoal production and distribution business.

No doubt raising start – up capital for a business might not come cheap, but it is a task that an
entrepreneur must go through.

Philip Okonkwo Charcoal Production & Distribution Company is a family business that is
owned and financed by Mr. Philip Okonkwo and his immediate family members. We do not
intend to welcome any external business partner which is why we have decided to restrict the
sourcing of the start – up capital to 3 major sources.

These are the areas we intend generating our start – up capital;

 Generate part of the start – up capital from personal savings and sell of stocks
 Source for soft loans from family members and friends
 Apply for loan from my Bank

N.B: We have been able to generate about N250,000 (Personal savings N200, 000 and soft loan
from family members N50, 000) and we are at the final stages of obtaining a loan facility of
N500, 000 from our bank. All the papers and document have been signed and submitted, the loan
has been approved and any moment from now our account will be credited with the amount.

14. Sustainability and Expansion Strategy

The future of a business lies in the numbers of loyal customers that they have the capacity and
competence of the employees, their investment strategy and the business structure. If all of these
factors are missing from a business (company), then it won’t be too long before the business
close shop.

One of our major goals of starting Philip Okonkwo Charcoal Production & Distribution
Company is to build a business that will survive off its own cash flow without the need for
injecting finance from external sources once the business is officially running.

We know that one of the ways of gaining approval and winning customers over is to retail our
charcoal a little bit cheaper than what is obtainable in the market and we are well prepared to
survive on lower profit margin for a while.
Philip Okonkwo Charcoal Production & Distribution Company will make sure that the right
foundation, structures and processes are put in place to ensure that our staff welfare are well
taken of. Our company’s corporate culture is designed to drive our business to greater heights
and training and re – training of our workforce is at the top burner.

As a matter of fact, profit-sharing arrangement will be made available to all our management
staff and it will be based on their performance for a period of three years or more. We know that
if that is put in place, we will be able to successfully hire and retain the best hands we can get in
the industry; they will be more committed to help us build the business of our dreams.

Check List / Milestone

 Business Name Availability Check:>Completed

 Business Registration: Completed
 Opening of Corporate Bank Accounts: Completed
 Securing Point of Sales (POS) Machines: Completed
 Opening Mobile Money Accounts: Completed
 Opening Online Payment Platforms: Completed
 Application and Obtaining Tax Payer’s ID: In Progress
 Application for business license and permit: Completed
 Purchase of Insurance for the Business: Completed
 Leasing of a shop facility and renovating the facility as well: In Progress
 Conducting Feasibility Studies: Completed
 Generating capital from family members: Completed
 Applications for Loan from the bank: In Progress
 Writing of Business Plan: Completed
 Drafting of Employee’s Handbook: Completed
 Drafting of Contract Documents and other relevant Legal Documents: In Progress
 Design of The Company’s Logo: Completed
 Graphic Designs and Printing of Packaging Marketing / Promotional Materials: In
Progress
 Recruitment of employees: In Progress
 Purchase of the Needed furniture, racks, shelves, computers, electronic appliances, office
appliances and CCTV: In progress
 Creating Official Website for the Company: In Progress
 Creating Awareness for the business both online and around the community: In Progress
 Health and Safety and Fire Safety Arrangement (License): Secured
 Opening party / launching party planning: In Progress
 Establishing business relationship with vendors – wholesale suppliers / merchants of
charcoal: In Progress
 Purchase of delivery trucks: Completed