This is a detailed guide on How To Start Charcoal Export Business In Nigeria.
Importation and Exportation of goods are both helpful in the economy of a country.
Importation serves as a means of giving a country and its citizen adequate exposure to products produced in other countries, and how to use such products too.
On the other hand, exportation strengthens the popularity of a country in other countries they export to. Also, the revenue of an exporting country will grow really fast.
I have seen a few people who are genuinely interested in businesses that involve importing and exporting goods.
If you are one of such, here is a line of action you can follow – the charcoal export business.
In this post, I will discuss the practical steps and approaches to start the charcoal export business in Nigeria.
But for in-depth understanding, let’s quickly explore some facts about charcoal and charcoal exportation.
What Is Charcoal?
I don’t want to make a wrong assumption that we all know about charcoal.
However, if you do, you might be getting additional information.
Charcoal is the black remains of firewood after it has been burnt with fire.
Charcoal is gotten from burnt firewood, but the firewood would not be completely burnt to ashes.
The Uses Of Charcoal
Understanding what charcoal is used for will purge you, and make you know you are in for real business.
Charcoal has various uses that are important both globally and domestically.
Some of the uses of charcoal are listed below.
1. For Cooking
The first use of charcoal I’ll mention here is domestic use.
Charcoals are used for cooking with what we call coal pots.
It is preferred by many people because it is cheap and has less environmental abuse like firewood.
Cooking with charcoal is safe and fast because the coals will burn very hot and it produces no smoke.
It can be used for various types of food preparation, cooking, steaming, baking, grilling, roasting, and frying.
2. It Is Used To Keep The House Warm
During winter, some parts of Nigeria like Jos experiences optimum cold weather conditions that they need artificial heat to keep them going.
While this is the case for only a part of Nigeria, it is a national thing for many other countries of the world.
However, one of the most effective ways to keep the house warm during winter is the use of charcoal.
3. Charcoals Are Used As Metallurgical Fuel
In Metallurgy, the Science and technology of metals, cooking coal(Charcoal) can be used as metallurgical fuel in the melting of irons, steels, and other metals.
It is one of the tools used by blacksmiths in molding and remolding metals.
4. Used As Absorbent
The chemical composition of charcoal makes it suitable to be used as an absorbent.
One of the properties that make it suitable is that it can soak up organic compounds that are embedded in liquid or gas.
Therefore it is used by many industries as an absorbent.
Kindly note that the use of charcoal is not limited to this, but I have decided to keep a lid on it here because I believe you get the message already.
How To Start Charcoal Export Business In Nigeria
The charcoal business is very profitable in Nigeria. This is because charcoal is highly demanded locally and globally.
The steps below address how to start a charcoal business in Nigeria.
Also, it includes how to start exporting in Nigeria since we will be dwelling on how to start the charcoal export business in Nigeria.
Also See: How To Start A Business In USA From Nigeria
1. Conduct Extensive Research
The first step to start a charcoal export business in Nigeria is by conducting thorough research.
To further expatiate what I mean by this, I believe this list would have so far opened your eyes to one thing about the charcoal business in Nigeria.
This and more is what research will do to you.
Since there are no schools to teach you how to teach you the basic skills or to provide you the relevant information needed in the charcoal business, it is your duty to investigate and make extensive research about the business.
Your area of concentration could be to:
- Study and read about your country of destination
- What is the state of the charcoal business in the country
- Get informed about Nigeria’s exportation policies.
2. Register Your Business with Cooperate Affairs Commission (CAC)
Whenever I want to give advice about starting a business in Nigeria, I always encourage people to get their business registered officially with the appropriate body.
This is even more important now for you as you will be operating internationally.
You wouldn’t want to run an illegal business model.
Therefore, you should register your business with the corporate affairs commission (CAC).
This will give your business national and constitutional recognition, and it will also aid your international recognition.
Your international customers will have a sense of Genuity, and they will believe in you. Learn how to register your business with CAC in Nigeria.
3. Get Registered With The Nigeria Export Promotion Council (NEPC)
Why do you need to register with another body aside from CAC?
If you are starting a local business within Nigeria, the only legit form of business registration required is with the CAC.
Registration with NEPC is required since you will be exporting to other countries.
Corporate Affairs Commission (CAC) registers your business to run officially, while the Nigeria Export Promotion Council (NEPC) registers you as an exporter.
4. Map Out Your Business Plan
Mapping out a plan is another step to start a charcoal export business in Nigeria. A few businesses achieve very great heights without a business plan.
Therefore, it is important to have a plan for your business at this point.
The plan will include the goals you want to achieve with the business, the required budget, the source of funding, the accountability of the business, and more.
All this should be put into consideration to keep you going when things are about to go rough.
5. Learn From Someone In The Business
Since you are new in this business, it will do you a lot of good to learn the dealings from an experienced exporter.
There is a chance that you haven’t even been to the country you want to export to before, which can pose some disadvantages even after your research.
However, when you have someone to put you through, you can easily avoid some unnecessary mistakes that may occur.
6. Get A Trusted Supplier
You wouldn’t want to start your business on the wrong note, hence there is a need to partner with a trusted supplier and not just anybody.
The mentor you have chosen can easily help you connect with the right people that will give your business the right image in the face of your customers.
This is no doubt one of the most important steps to starting a charcoal export business in Nigeria.
Also See: 12 Profitable Business To Start With 100k In Nigeria
7. Find Buyers
No business thrives without buyers or consumers of the products or services rendered.
So you must find buyers for your product.
Asian and European countries are said to have high demands for charcoals, but it will be on you to step out of your coast and find the people you’ll be supplying to.
Below are a few ways to aid your search for customers.
- Make searches on the internet for necessary information
- Be a part of NEPC trade fairs. This will be easy since you are registered with them.
- Get in touch with agents
- Your mentor can also assist you.
8. Kickstart Your Charcoal Exportation
Since you have been able to prepare your business, it is time to launch your charcoal exportation.
But hang on, there are two different ways to do this.
The first is called Free on Board (FOB) basis, and the second is Cost, Insurance, and Freight (CIF) basis.
On the Free On Board (FOB) basis, you will bear the cost of every expense up to the shipping point. While on the Cost, Insurance, and Freight (CIF) basis, you will bear the transportation and insurance costs up till the final destination.
That is all on How To Start Charcoal Export Business In Nigeria.
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