Business Plan for Cooking Gas/ LPG Plant

Share to help others

1.0 Executive Summary:

Kings LPG plant is a registered indigenous company that was established to dispense and sell liquefied petroleum gas, otherwise known as cooking gas for household use in Nigeria. The company is committed to the sales of cooking gas of optimum quality and affordable price to individuals and retailers. We also offer the most outstanding after sales services that would meet the needs of our customers.

Our business will also carry out the following associated services: retailing gas cookers, cooking gas cylinders, gas cooker accessories and gas cooker repair and servicing workshop.

We intend to utilize the best technology possible and obtainable in the cooking gas plant industry. Our excellent customer service and the range of additional complementary services we provide will position us to become one of the top cooking gas dispensing plants in Ikeja, Lagos state and its environs. The business would be managed by Mr. Segun Adekunle who has a BSc. in Business Administration and over 8 years of working in LPG gas plants across Lagos.

The LPG sales business is profitable and lucrative as many households are now beginning to use cooking gas instead of kerosene or firewood, because, in comparison to kerosene or firewood, cooking gas is a more cost effective means of cooking and it hardly produces soot on pots. With the aid of our optimum marketing strategies, we plan to do better than our competitors.

This business plan is intended to give an idea about the profitability of a 20 ton capacity cooking gas plant, the capital requirements and the keys to success. The plan is also intended to determine if additional financial sources like loans would be needed in addition to the available capital.

Read Also:  12 Reasons Why You Need a Business Plan

From our financial projections, the total required startup cost for this business is xxxxxxxx million naira. This startup capital is to be sourced from personal owner’s equity of xx, xxx, xxx million naira (24.53% of total required startup funds), and expected bank loan of xx, xxx,xxx million naira (75.47% of total required startup funds).

The financial projections show that the project will be financially stable as it progresses. By the end of the first year the expected net profit is xx xxx,xxx million giving a 16.6% net profit margin or returns on investment (ROI) and 65.0% return on Equity (ROE). The gross income is also expected to grow in subsequent years. This is shown by the expected net income earnings for the second year which gives xx,xxx,xxx million net  income  and generating a 21.1% net profit margin or ROI and 59.8% ROE. Also, the expected earnings for the third year which gives a net income of  xx,xxx,xxx million naira and generating  about 21.1% net profit margin or ROI and 59.8% ROE. ( Please refer to the attached financial projections document in Microsoft excel format for details including income statements, loan repayment plan, detailed feasibility studies; financial projections and break even analysis )

Also, from our analysis and projections, xx tanks of 20 tons gas need to be sold to achieve break-even sales of xx,xxx,xxx million naira (volume of our product we need to sell before the business begins to make net profit). The business is expected to start yielding profit from the sales of the xth tank of 20 tons gas and at the end of the first year of business operation; the business is expected to yield a net profit of xx, xxx,xxx naira.

Read Also:  How to Write a Unique Business Plan

The competitive edge of the business is in its ability to penetrate into the market freely, with the use of marketing strategies that will promote rapid turnover. We plan to establish more business outlets in at other locations within and outside Lagos within the next five years. This project is highly recommendable, because judging from the above profitable measures; it shows that the project offers good investment benefits which is found technically feasible, financially viable and economically desirable.

  • Objectives
  •  Mission
  • Vision
  • Keys to success.

2. Company Summary

  • Company History
  • Company Strategy
  • Business Risks
  • Value Proposition
  • Competitive Advantage

3. Products and services

  •  Product Description
  • Technology
  • Future Services

4. Market Analysis Summary

  •  Market Segmentation
  • Competition and Buying Patterns
  • SWOT Analysis

5.  Strategy and Implementation Summary

  • Marketing Strategy
  • Marketing Programs
  • Pricing Strategies
  • Payment Options
  • Strategic Alliances.

6.0 Management Summary

  • Roles & responsibilities
  • Personnel recruitment plan

7.0 Financial Plan

  • Required start up funds
  • Fixed operating expenses
  • Staff salaries and wages summaries
  • Projected Profit and Loss
  • Income statements
  • Cash flow statements
  • Balance sheet
  • Loan repayment plan
  • Break even analysis
  • Projected cash flow graph

8.0 Appendix




**Cost of the already written business plan which you can adapt for your use is N20,000. This business plan also contains all other financial projections and analysis in addition to the main business plan.

**If you want us to write the customised business plan specifically for your unique business situation, taking into consideration your available capital, loan requirements ,intended business location and other factors, the cost is : N40,000.

Read Also:  Business Plan For Mobile Phones & Accessories Business

Note: Please due to the volume of calls we receive, we prefer that you send us a whatsapp message instead of calling and we shall respond immediately.

Share to help others

Leave a Reply

Your email address will not be published. Required fields are marked *