Lubricant Oil Distribution Business Plan in Nigeria

Lubricant Oil Distribution Business Plan in Nigeria

Our sample Lubricant Oil Distribution Business Plan in Nigeria can be used to access bank loans, proposal writing and grant applications. This business plan was complied after a proper feasibility study on lubricant oil distribution business plan in Nigeria was carried out.

 Also Read: Petrol Filling Station Business Plan in Nigeria

To get your own Lubricant Oil Distribution Business Plan in Nigeria, pay N20,000 to:

BANK NAME: FIRST BANK PLC

ACCOUNT NAME: CHIBUZOR TOCHI ONYEMENAM

ACCOUNT NUMBER: 3066880122

After payment, text your full name, email address and title (e.g. engine oil business plan pdf) to 07033378184. Your business plan will be sent to your email within 15 minutes.

Cars are a major part of any economy in the world and till there is a new invention, lubricant oil is going to keep being a major commodity used in car maintenance. Lubricant oils are major extracts or fractions of crude oil. Before we discuss about how to begin a lubricant oil business in Nigeria I think it is very important to give a brief background to what lubricant oils are and how they come about.

When crude oil is being processed through the process of fractional distillation at oil refineries, there are several fractions that proceed as a result of this process. One of such fractions is petroleum products of which lubricant oils is a major part. Some of the products that come forth from the fractional distillation process include liquefied natural gas, paraffin wax, kerosene, liquefied petroleum gas, premium motor spirit, tar, asphalt and lubricant oils. Lubricant oils is not just engine oils, this should be stated at this point because classifying engine oils alone as lubricant oils is a major notion in this part of the world and the ideology is quite wrong. There are several other oils that fall into the lubricant oil category, we will look at a few later in this article.

Lubricant oils are very important to every engine, as a matter of fact they are almost indispensable, for without them the engine will be affected by friction and will end up knocking. The lubricant oils help to reduce friction in the engine parts and as a result reduce the heat emitted from the engine. This way there is a drastic reduction in the wear and tear of the engine and thus the life of the engine is prolonged. Having said this we can see how important the lubricant oils are to our everyday life. Asides their use in cars, we have machines that we use on a daily basis in factories, generators, business offices, shops, transportation and several other sectors. Almost all of these machines have engines which require the use of lubricant oils for their maintenance and proper function. This makes it evident that lubricant oils are in very high demand and the market is big enough to accommodate new entrants. Most of all it tells you that there is a lot of profit to be made in this sector, so if you have any interest, as I suspect you because you are reading about this, then you should dive in.

Different types of engine oil you can invest in

Like it was stated earlier in this article, there are several oils that fall under the lubricant oil category, in this section we will take a brief look at each of them.

1. Motor Engine Oil. As expected, this is the most popular lubricant oil in our society today. The motor engine oil is what is generally referred to as engine oil and the market for this particular product is extremely large. Every car, motorbike, bus, trailer, etc. requires this commodity for proper functioning. The motor engine oil could come as 5W30 or 5W40, these properties depends on two major factor which are the manufacturer and the kind of treatment given to the oil during the manufacturing process. This oil required majorly when the engines of these vehicles are being serviced, that just means there will always be a demand for this product.
2. Automatic transmission fluid. For several years now, cars have been transformed from the manual gearing system to the automatic gearing system. This change in gearing system has created a demand for a different kind of lubricant oil known as the automatic transmission fluid. As a matter of fact there is a constant high demand for cars with automatic gearing system as against cars with manual gearing system, this just means the demand for automatic transmission oil will continue to increase. This is because it will be needed to keep the gear system of such lubricated for proper functioning.
3. Clutch and brake fluid. This is one very important aspect of lubricant oils, it is practically indispensable for vehicle users, and this is because it is what keeps the brakes and clutches of vehicles functioning perfectly. Without the brakes the vehicles will never stop and that will put lives in danger and without the clutch you will not be able to change gears or use the brakes either. This one part of the business that is sure to yield a whole lot of profit.
4. Diesel engine oil. This oil is in a stiff competition for popularity and patronage with motor engine oil because it has almost the same size of market or maybe even more. It is used in industries for large manufacturing machines, in generating sets and every other motor that is not a vehicle. It is mostly thicker than motor engine oil, the reason for this is the amount of heat emitted by the engines in which it is used.
5. Grease. Grease is known to prevent rust and friction as well as help maintain proper function in machines. Due these diverse functions grease is one of the most sought after lubricant oils of the pack, the demand is extremely high. It is used in manufacturing machines, cars, large vehicles, and every kind of engine that you can think of. Grease is quite thick and it is very dark in color.
6. Oil treatment. Technically you cannot classify these as a part of lubricant oils, but it is a very important oil in the mechanical industry. It is used mostly by engineers and mechanics after they have used motor engine oil, they add a little to the engine oil in the engine. The reason for this is that it helps to keep the engine clean, expunging any form of dirt. It also ensures that the amount of heat emitted by the engine is reduced to the barest minimum, this goes a long way to ensure the machine has a long life span.

Having considered all of these, we can go ahead to see the requirements needed to be satisfied to start your own lubricant oil business.

Requirements to be met

Since we have been able to gain a little knowledge about the different types of lubricant oils, we can conveniently see what you need to set in place to start your business:

1. Carry out a feasibility study. Any business you start without an initial study has a probability of going down even before you start. It is always necessary to understand the industry you are planning to do business in so that you do not end up throwing away your money and wasting your effort all in a bid to invest for profit. If you cannot do this yourself, find a professional to help you out, you can also visit other individuals who are already into the business and have some experience. It is better to learn from their experiences so you know what to do and what to avoid in the industry.
2. Write a business plan. Are you wondering if this is necessary? Well for any business to be successful this item is not even negotiable. You could go for a very comprehensive business plan or you can decide to go for something mini, whichever you choose ensure you have something written out as a plan for your business. It will help keep you on track and push you faster towards success. You can write the plan yourself but it is best you consult the services of a professional for more accurate projections.
3. Warehouse. The size of warehouse is totally dependent of how big you expect your business to be. You should not be renting or building a warehouse on a yearly or biennial basis, from your feasibility study and business plan you should have figured out the size of warehouse you need. You may build the warehouse or decide to rent if you cannot build. There are some factors you should consider when choosing a warehouse some of them include, proximity to market and supply point, security from robbers and other vices, proper covering from rain and too much sunshine. The rain may damage the cartons and the sunshine may cause the oils and grease to melt.
4. Find out what your prospective clients want. Surveys are very important for growing businesses, especially this kind of business. You should take polls to find out what exactly your prospective clients want, after all you are not running the business to consume your products by yourself. The clients will definitely have the products that they will prefer to buy and use, find these out from them and focus on them for your growing business. If you can get this aspect right you can be sure that your business will grow pretty fast and you can make some good profit.
5. Make contact with supplying companies. Once you have figured out what the clients want, the next step to take is to make contact with the companies that have the products your clients want. There are several companies that run lubricant oil production outfits, for the best prices it is better to visit them personally and make bargains so you do not get ripped off. Although this also depends on how big you plan your business to be. If you are just a small scale business, you might just find one of the distributors in your location and strike a business deal with them.
6. Buy a truck. This is a very necessary aspect of the business, this is because you will need the truck to help you convey the products from the point of purchase to your warehouse and also distribute among your prospective clients. Once you have a truck you should think of hiring a driver who can double as a salesman when you confirm his integrity level. Asides the driver, you should also consider employing one or two other sales boys to assist you in making sales.
7. Publicize your business. This is the most important part of the business, even though some people believe that position should be given to the capital. If you have gotten all the above stated points and you fail to properly publicize the business, you will end up opening the business by yourself and using the products by yourself too. Reach out to those you used for your initial survey, they are your first market. You should also use other methods of publicity like social media, handbills and billboards, most of all invest as much as you can in treating your customers right for the sake of their referrals.

Profitability of the business

Studies have shown that those who invest in lubricant oil business tend to make between 10% and 20% of their invested capital within a very short period, usually with the investment installment. The reason for this quick returns being that lubricant oils are very much in demand and since Nigeria is a third world country we have more need for these products.

In conclusion, the lubricant oil business is very lucrative and the market is quite large, you just need to figure out what part you want to be involved in and put in all of your effort. Before long you will be smiling to the bank with your profit, most of all ensure you study the business sufficiently before diving in and strive to manage the business properly.

Get your Lubricant Oil Distribution Business Plan in Nigeria today. To order the business plan, pay N20, 000 to:

BANK NAME: GUARANTY TRUST BANK (GTB)

ACCOUNT NAME:  CHIBUZOR TOCHI ONYEMENAM

ACCOUNT NUMBER: 0044056891

OR

BANK NAME: FIRST BANK PLC

ACCOUNT NAME:  CHIBUZOR TOCHI ONYEMENAM

ACCOUNT NUMBER: 3066880122

After payment, send your full name, email address and topic (e.g. lubricant oil business plan doc) to 07033378184. Your business plan will be sent to your email within 15 minutes.

Lubricant Oil Distribution Business Plan in Nigeria © www.businessplan.com.ng