Charcoal is one of the legendry fuels in Ghana, and in today’s guide, we shall share with you simple guidelines on how to start a charcoal business in Ghana.
Are you interested in investing in a charcoal business? Maybe you are willing to start a charcoal business but don’t know how to commence?
Then, you find yourself reading the right article because this article will help you understand why the charcoal business is a good investment.
Charcoal has always been the source of fire for people in the working class.
The working-class neighborhoods have a high taste in cooking, using charcoal as their main source of fire.
Therefore, since a group of people has a high demand for charcoal, this creates an opportunity to make a business out of it.
Requirements To Consider Before Starting A Charcoal Business
To easily start a charcoal business in Ghana, there are several factors that one has to consider before the commencement of your charcoal business. Some of the things that have to be considered include:
Location of your business – location is very key in charcoal business operation.
This is because charcoal mainly serves as a source of fire for a class of people that form a greater part of the nation’s population.
Charcoal is the main source of fire for the working-class of the nation’s population.
The working-class lives in poor communities found in the cities where charcoal is in demand as the major source of fire for the residents.
Consider whom to buy your bags of charcoal from – the price of a bag of charcoal differs from one supplier to another, and also the sack used in bagging the charcoal differs in sizes.
Therefore, choose the right supplier to help sustain your charcoal business.
Advertisement – advertising your charcoal business through friends and family will help make a lot of people find and patronize you.
Licensing of your business – licensing is mostly important for investors who run the medium and large-scale charcoal business.
Small scale investors mostly run their business from homes, so they don’t consider licensing of their business.
How Much Does It Cost To Start A Charcoal Enterprise
The cost of starting a charcoal business depends on the investors’ capital budget for the business.
To start a small-scale charcoal business where you only act as a retailer, you’ll need a capital of about 150 Ghana cedis.
Investing in a medium-scale charcoal business will cost 500 Ghana cedis. With the medium scale, the investor act as a wholesaler and retailer at the same time.
Large-scale charcoal businesses require a huge sum of capital to start.
Here, it will cost the investor about 2000 Ghana cedis.
The large scale only operates as wholesalers and buy charcoal in large quantities to serve as suppliers to retailers.
How Profitable Is Charcoal Business In Ghana
Since charcoal is highly in demand by a group of people who live in poor communities in the cities, this has made investing in charcoal a profitable venture.
When the right location is chosen for the charcoal business, one can make about (20% – 30% ) of profit within the shortest possible time.
Best Areas To Start Your Business
Charcoal business in Ghana can be started in many different areas, some operate from homes whilst many operate from small and big shops.
The best area to choose for your charcoal business in Ghana is targeting the communities of the working-class population.
The working-class communities consist of people whose jobs provide low income, limited skill, or physical labor.
Therefore, it is difficult for them to find firewood in the cities, and most of them can’t afford gas as their source of fire.
So, charcoal becomes the main source of fire for the working-class communities, and this area is the best to choose to start your charcoal business.
How To Make A Successful Charcoal Business In Ghana
1. Good customer relationships should be practiced because this will help make a lot of customers patronize you.
2. Investors should be determined to run their charcoal business.
Finally, here is where we leave you on the road on how to start a charcoal business in Ghana.