Did you know that you can Start Palm Kernel Oil (PKO) Extraction Company in Nigeria using a Business Plan Template? This short article is a brief and straight forward guide that will explain to you all you need to know about how to starting a palm kernel oil extraction business in any country in the world. If you like agriculture and appear to be very fascinated in the business, then you really have to carefully read on slowly to get the complete details about what it takes to begin your own palm kernel oil extraction business.
Are you a Nigeria that lives within the boarders of the country or you are in a foreign land but decided to come back home to start a palm kernel oil business? Are you interested in starting a palm kernel oil extraction business in Nigeria? Do you or your company need an international standard palm kernel oil extraction business plan template or feasibility study report for start off or for a grant (loan)? Then it is the job of Martins Library Team to advice you on it.
The Product called Palm kernel oil is used for some many purpose which includes domestically for cooking, and it is used in almost every African home for this primary purpose. The PKO is also used in industries as a major ingredient in the manufacture of secondary products like soap, cosmetics, processed foods, and etc. The industrial demand for Palm Kernel Oil is very high and it is derived from its varied and broad use in the chemical and food industries across Nigeria and Abroad..
Palm Tress (Palm Fruits - FFB) is available in some countries in Africa and Asia. So, if you are lucky to live in any of the major palm oil growing countries like Nigeria, Malaysia, Indonesia, etc where palm kernel oil is in huge demand both domestically and industrially, then you or your investors can conclude to venture into the palm kernel oil (PKO) production business in Nigeria. Note that this PKO business requires is basic training and education in the process of science and technology, which any interested person, company or investor can easily obtain by consulting an expert (professional person) for a business plan for the business or by simply searching the internet for some related and helpful resources that can guide you on what to do in every step and how to do it.
Read these Related Post
- Proposal on Palm Kernel Oil (PKO) Extraction Company in Nigeria
- How to Start a Palm Kernel Oil Extraction Company – Sample Business Plan Template
- List of Palm Oil and Palm Kernel Oil Exporters in Nigeria
- The Feasibility Study on Palm Kernel Oil Business
1. First Step - Begin by writing a Business Plan
Every good business man should know that writing a good business plan is an important part of starting a business whether big, medium or small scale. A business plan helps you know truthful part of the business before you even venture into it, The business plan will let you know if you will be able to start the business or not. You will also know if you have or don’t have the requirements yet; since the business plan will highlight in details all the startup requirements in terms of cash, equipment and man power. The business plan and financial model will also includes all the market analysis, financial summary, and other details that help you to plan your business perfectly from the scratch. The added advantage of the business plan is that even after starting the business, your business plan will help you stay focused to achieve your goals with within a short period of time as you watch it grow. You can also use the business plan to get a grant (loan) from Bank of Industry (BOI) or any other Nigerian Bank. The bitter truth be told; even though you have and follow a business plan guidelines to the letter, it will not guarantee 100% that your business will succeed, but the worse is not having at all, as this usually results in a complete failure in business. Martins Library can write one or you or your company - It is advised that you should Call us on +2347030722911 for a professional international standard business plan. See the Procedures of Getting Business Plan
2. Second Step - Source for Funding
The financial aspect of this business is a bit high depended on the scale of production you intend to invest. This is the basic truth; this is to say that business is capital intensive. The palm kernel oil (PKO) production business will require a minimum of N4,000,000 and N9,000,000 (between $20,000 and $50,000 using N200 exchange rate) depending on the size of your business, your chosen location, and many other unforeseen factors. You will need about N700,000 (about $3,500) to cover startup expenses, which include the rent for at least 3 years if you don't have a land, business registration and agency fees, insurance, and others which the business plan will show you. The Startup assets and costing usually make up the rest of the needed capital. These include the cash needed for recurrent expenses (one year forecast), startup inventory and stock (for six months), and the cost of other related assets required for the business startup, such as office furniture, processing equipment and machinery, office fittings, operating expenses etc. With all these said, you can determine if you can afford all the required funding, then you can finally decide to run the business as a sole proprietorship. However, if you would need more funds from third parties, then you should consider involving one or more other individuals and going into a partnership. Better yet, you can source for either equity funding (by approaching investors), debt funding (by taking bank loans) or by taking small business grants, if available. Not that you will need a business plan to be able to take these grants or bank loan because no investor will give you funding if you are not able to provide an international standard business plan on the business.
3. Third Step - Find a Good Working Location
You should be aware that before choosing a location for your palm kernel oil (PKO) production business in Nigeria or any other country, it is advised that you consider the availability of raw materials (which is the palm kernel nut) as well as the target market for sales. A perfect location should be very close to the market and its customers, as well as the source of raw materials gotten from palm oil mills in the particular state the business is to be established. Not that you can also buy raw materials from nearby states to increase production
4. Fourth Step - Buy the Needed Processing Equipment
Palm kernel oil production involves some certain primary steps of processing which includes crushing of the nuts, cleaning, flaking, steam condition, screw pressing, and filter pressing stages to finally obtain the palm kernel oil. Please note that most of these processes requires the use of palm kernel machines for faster production. So, your company needs to buy the machines needed for each singular process. You can source for local fabricators within the shores of Nigeria to buy the machine or your company might decide to import the machines from Malaysia, China, India etc. Nevertheless, you and your investors must bear in mind that high quality machines will be more productive and will save your company the huge repair and maintenance costs in the long term. So, it’s very important that you choose your machines carefully. When choosing machines, be sure that the wastage level is very minimal so as not to cause loses for the company.
5. Fifth Step - Employ Experienced Hands (Staffs)
You cannot run the business all by yourself not matter how informed you are in the business. With that said, the effective day-to-day running of the palm kernel oil production business depends of hired hands. So you will need to employ experienced and competent personnel to man certain positions and fasten operations. Aside the manager or CEO (in some cases, this may be you, the owner of the business), you will need to employ a technical assistant, a storekeeper, about 4-6 production staff members, a quality control staff, security officers, as sales and administrative staff. In all, you will need between 11 to 16 staff members to run your palm kernel oil production business effectively thereby creating employment opportunities.
6. Start Production and Market the Business
This is the point where you can do business. After you have everything put in place, you can start off production in your mill. Since your business is still very new, you will need to adopt marketing strategies in order to spread word about it and attract customers (You will get these strategies in the business plan also - Call us on +2347030722911). Your customers include households, restaurants, food industries, soap and cosmetics industries, and so on. If you have a good number of them around you, then you can easily approach them and convince them to buy from you. This is called marketing strategy. It is advised that you Advertise your Business with us - Martins Library to be able to reach more customers both for local sales and export.
In conclusion, the period of time it will take you to develop a business plan (which can take up to 2 weeks) to the time you will start operation typically spans between 2-3 months. It could take shorter or longer, depending on your eagerness, availability of funds, and other unforeseen factors. There are some other things you need to know about the business, please read more below;
Challenges of Starting a Palm Kernel Oil Extraction Business
- It is a capital intensive project, as you will need to erect a production structure (factory) and the machines doesn’t come cheap either.
- It is management intensive, as you will need several people to man the various production stages.
Crude Palm Oil, Palm Kernel Nut, Palm Kernel Cake, Palm Kernel Shell - CPO, PKN, PKC, PKS - This business is a very lucrative venture that can put real profits your pocket. This conclusion was made because we have calculated the feasibility study of the palm products business in our last post. If you missed it, then click on the links below to get it now for free. Remember to request for a business plan for palm oil mill, palm kernel crushing business, palm kernel extraction business because you will fail in the business if you don't get full information about it. Again, no bank will grant you any loan without an international standard business plan that will explain to them how you intend to run the business, how you actually need to run the business, where you are getting the machines from and the period of time the business will breakthrough in it profitability analysis.
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