What Is The Single Most Important Decision Before Starting Your Petrol Station Business?

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What is the most critical question you should ask before you start your petrol station business?

Think about it for a second. Is it a question about capital requirements? Is it a question about regulations? Is it a question about the process and requirements

The actual answer might surprise you.

The most important question you should ask is “Does this location profitable for the long-term success of my petrol station business?”

With increasing competition, more than ever, you need a petrol site location that will sell a big volume of fuel and products to your target customers.

You can have all the capital in the world, equip your petrol station with modern equipment and hire the best people in the industry, but if you build a petrol station in the wrong location, you will suffer years of no growth due to fewer sales.

You could quickly go out, buy land on a busy street and start building a petrol station. But that is a very risky approach. Why? Because you have no data-based evidence as to whether there would be enough customers in the target group to make your effort worthwhile.

Also, not all petrol station sites located on busy streets are profitable. Motorists and consumers can pay more to avoid turning into a petrol station, which makes entering or exiting difficult.

That’s why research is so important.
Imagine if your research uncovers that your desired petrol station site will sell only 500 liters daily. But you thought you would sell 5000 liters per month.

Again, imagine if your study uncovers your desired petrol station site will sell more fuel. But you wanted to build a service bay for a car wash, restaurant, and supermarket.

If you do research in advance, you can adjust accordingly. If you don’t research, you’ll still come to the same conclusion but lose money and time on the way.

Before building or even a petrol station, you must assess how easy it is for motorists and consumers to enter and leave the sites. How is the site accessible from the main road?

You must ensure that your site allows access via roadways and frontage.

The location must have easy in and out access. Also, your site must be located at an optimum distance, enabling motorists driving at average speed to have enough time to make buying decisions, slow down their vehicle, and enter your station safely.

If there is a problem with access and visibility, determine what you can do to improve access to the site.

In addition, it is crucial to understand who your closest competitor is in your trading areas and identify their strength and weakness and what volume they are achieving.

If other petrol stations exist in the same trade area, Identify their strength, weakness, and what volume they are achieving. You may also need to identify the competitive advantage your new site could gain on its fuel volume.

I hope this helps.

Remember, the game is not to start a petrol station but to stay in the petrol station market long-term.

How to Expand Your Business in the Energy Market in Tanzania

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Do you want to know how to expand your business in the energy market in Tanzania?

The increased speed of change, the high level of unpredictability, and the extreme intricacy of events such as the Covid-19 crisis, changes in market conditions, and political pressures have forced many business owners to think creatively, be more flexible and embrace change.

If your business is losing money because of changing market and industry conditions, you may want to expand your business in the new market.

As a business owner, you are constantly challenged to expand and test new ideas. But more than ever, you need ideas that work and get you a cash flow fast.

Expanding your business in the energy market is one of the best ways to stand out in changing economic conditions. Here is how you can expand your business in the energy sector.

Step 1: Pick the right Opportunities
You must be careful with your business decisions when expanding in a new field. Opportunities in the energy sector are immense, From starting petrol stations to LPG sales and lubricants. If you want to start a petrol station, do you want to build it from scratch, or do you want to lease or be a dealer of a large oil marketing firm?

If you decide to start an LPG business, are you looking do you want to be a distributor of existing oil marketing firms? Do you like to introduce your own brand of LPG cylinder?

Step 2: Market Research.
The game is not to expand your business in a new market. The game is to stay in the market for the long term. And doing market research is critical long term success of your business. Research what are the requirements for starting your project of choice in Tanzania. What estimated sales volume can you achieve from that business per month? Identify whether your location is viable and can attract sufficient customers to make you profitable. Research what are the risks and opportunities involved in the market. Who are competitors, and what are their strengths and weakness?

This information is essential to expand your business successfully in the energy market.

You could quickly go out, buy land on a busy street and start building a petrol station. But that is a very risky approach. Why? Because you have no data-based evidence as to whether there would be enough customers in the target group to make your effort worthwhile. Also not all petrol station sites located on busy streets are profitable. Motorists and consumers can pay more to avoid turning into a petrol station, which makes entering or exiting difficult.

That’s why research is so important.

Imagine if your research uncovers that your desired petrol station site will sell only 500 liters daily. But you thought you would sell 5000 liters per month. OR imagine if your study uncovers your desired petrol station site will sell more fuel. But you wanted to build a service bay for a car wash, restaurant, and supermarket.

If you do research in advance, you can adjust accordingly. If you don’t research, you’ll still come to the same conclusion but lose money and time on the way.

Step 03. Make Decisions
Now, you have acquired a deep understanding of the market and chosen opportunities in the energy market. So it’s time to make decisions. It can happen that you assumed good opportunities to expand in the energy market, but after research, you realize is not what you envisioned.

Step 04: Strategize to Expand your business in the energy market.

Now it’s time to plan your strategy. What steps will you take to make your idea of growth a reality? Where you will purchase equipment and supplies. How will you find customers? How will you differentiate your business from the competitors? How will you handle logistics and transportation issues?

Business Plan For Mobile Car Wash In Tanzania

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Executive Summary

Problem
People’s schedules today are so busy that they can not find time to wash or even clean their cars. They are too busy or don’t want to do it.
Solutions
DO FOR YOU Limited is a newly established company that aims to provide high-quality mobile wash services at customer locations.

Business Description
DO FOR YOU LIMITED is your car care expert company. We go to customers, make an appointment, and provide a car wash package at the customer’s location. We aim to provide car washing service to busy working men and women at their location. To our customers, DO FOR YOU limited offers more than car wash service. We provide luxury. We go to the customer’s location and get the job done without losing any time with the customer. This allows them to focus on what matters, growing their careers and business. We sell our services through petrol stations, gyms, repair garages, and parking lots.

Business Ownership   
Mr. Francis Shirima and Kassim Mbonde will be the only working n partner. Mr. Francis and Mr.Kassim will assemble logistics, raise capital, and set up the company. They will also involve in setting up an appointment with customers. Initially, they will hire one employee who will bet he only car washer. As the demand grows, they will employ more people to help them with day-to-day business responsibilities.

Mission.
To give everyone the gift of time by keeping their car clean and protected from weather

Vision
To be a trust care expert company that provides high-quality mobile wash services at customer locations.

GET THE FULL VERSION

In the full version, you will have access to the following table of contents:

Executive Summary
Business Description
Products and Services
Target Customers
Competition Analysis
Market Analysis
Sales Channels
Marketing Strategies
Cost Structure
Financial Projection

 

 

Trends That Help You Anticipate Whether LPG Business is Feasible In Tanzania and Africa.

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The potential long-run market demand for LPG demand in Tanzania and Africa is enormous. The population in East African countries is in transition from traditional ways of cooking (such as firewood and charcoal) to LPG usage.

Several trends assure growth in LPG demand: Depleting natural reserves like woods and charcoals, enforcing regulatory norms, increasing awareness toward eco-friendly products, and changing the lifestyles of the citizen.

 

Initially, the distribution of LPG was continued to urban areas only, but with rapid changes in the living condition of society, the requirement for LPG is increasing very steeply. Now the rural population is also starting to consume LPG. Currently, the LPG market in Tanzania is growing at 15 percent.

By 2028, other landlocked countries such as Rwanda, Eastern DRC, Zambia, Malawi, Burundi, and Uganda will have a good share of LPG sourcing from Tanzania. The demand is also likely to increase even further.
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Five High Demands and Big Volume-Selling Lubricants(Engine Oils) Products to Sell in Tanzania

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Selling lubricants (engine oils) has recently become very competitive.

The demand for lubricant oils increases nationwide for various reasons, including the growth of used car penetration in the country, more frequent changes of lubricants from older vehicles, and relatively long-lived machines dominating our infrastructures.

With such rising lubricant demand, several entrepreneurs and investors are marketing lubricant oil products in Tanzania.

Although there are many types of lubricant products with different grades and packages that people sell, just a few are high-in-demand lubricant products in Tanzania. This created a maze for potential investors, especially those new to the lubricant market, to select the right products to sell in their specific region,

At Tanzania Petroleum, we have built a reputation for helping our clients’ ideas become a reality and enabling growth through bringing in-depth research, robust financial analysis, and enhancing business plan clarity.

Now to give you a head start on the types of products to sell in Tanzania. Here are the top Five high demand lubricants(engine oils) products in Tanzania 

  1. Diesel Engine Oils: The first big volume seller of lubricant oil in Tanzania is diesel engine oils. Diesel engine oils reduce engine friction, mainly in heavy trucks, tankers, and stand-by factory generators. The high-demand package is 1 liter, 5 liters, and 20 liters. The grades most used diesel engine oils are number SAE 40, SAE 15W-40, a
  2. Petrol Engine Oils. The next high volume selling lubricants products is petrol engine oil. The most used package of petrol engine oils is 1 liter, 4 liter, and 20 liters.
  3. Stroke Motorbike Engine. This is mainly used in motorcycles and try-cycles. The high-selling package for stroke motorbike engine oils is 1 liter. 

      4. Brake fluids. The next high-demand lubricant product is brake fluids. It plays a crucial role in vehicles. The most used package in Tanzania is 0.2 liters. 

       
5. Greases: The other product you need to know about is greases. The most used grease package is 0.5kg, 1kg, and 3kg.

How Much Does It Cost to Hire Business Plan Development Consultant For Your New Project

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Hiring a business plan development consultant is a critical first step in unlocking the value of a new venture.

Although most business owners understand their current business well, it takes an unbiased party to challenge assumptions and uncover objective insights about a new project.

Companies working with business plan consultants achieve better outcomes through more in-depth research, better business modeling, and enhanced clarity of business plans. An experienced business plan development consultant is invaluable for any business pursuing a new venture.

But the most common questions entrepreneurs and business owners ask when they consider hiring a business plan development consultant is, how much will this service cost me?

How Much Should I Pay For Business Plan Development Services?

Several factors that impact the business plan development price are as follows.

1.The required quality of the business plan. Several companies and consultants out there offer complete business plan development services. However, the quality of their work can vary dramatically. The best business plan development consultant brings in-depth research, industry expertise, and robust financial analysis.

.2.Complexity of the industry. Some of the industry is very specialized. For example, developing a business plan for an energy project requires detailed commercial, strategic, and technical input to ensure the long-term success of your new venture.

3.Delivery time of the business plan: Generally, shorter delivery times mean increased prices. Typically, writing a quality business plan will take 3-4 weeks.

But on average, business plan development services range from US$ 2000 to US$ 5000. Again on average. These business plan development services can end up the cost even more, depending on customization and other factors.

How to Hire the Best Business Plan Development Consultant?

As I said, several companies and consultants offer complete business plan development services. However, the quality of their work can vary dramatically. You should assess their skills and industry experience before you pick the right one to work with.

Before you retain the service business plan development consultant, consider what will be included within the business plan.

A comprehensive business plan should cover critical areas, including market analysis, competitors analysis, industry trends, SWOT analysis, marketing and sales plan, and financial projection.

I hope this helps.

Five things You Need to Keep in Mind When You Rent or Buy Petrol Station in Tanzania

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Are you hoping to run a thriving petrol station business?

At Tanzania Petroleum, we know the impact on the growth of people and society that you can bring when you make your idea of running a petrol station a reality.

While building a petrol station from scratch is rewarding. But it can be time-consuming and capital-intensive.

A typical petrol station with a storage capacity of 2 storage tanks (20,000 liters of petrol and 25,000 liters of diesel) may cost between 200,000US$ and 300,000US$, equivalent to Tzsh 450 million to Tzsh600 million. Depending on the location, this cost excludes land costs.

Also, acquiring permits and licenses from energy regulatory authorities, finding appropriate locations, and mobilizing consultants and contractors to complete your petrol station can take 18 months of hard work and dedication.

This is why building petrol stations from scratch is only for some.

The biggest challenge in renting or buying an existing petrol station is the accuracy of information supplied by the current owner of a petrol station. Or even an agent.

But here are important things to keep in mind when you buy or lease a petrol station in Tanzania:

1. Asses location. The key determinant to whether the future success or failure of the petrol station business is location.

The most common misconception we observe is that because your petrol site is on a busy road or populated area is appropriate for operating a profitable petrol station. The simple reality is that motorists and consumers can pay more to avoid turning into a petrol station, which makes entering or exiting difficult.

So before renting or buying a petrol station, you need to assess how easy it is for motorists and consumers to enter and leave the sites. How is the site accessible from the main road?

You must ensure that your site allows access via roadways and frontage. The location must have easy in and out access. Also, your site must be located at an optimum distance, enabling motorists driving at average speed to have enough time to make buying decisions, slow down their vehicle, and enter your station safely.

If there is a problem with access and visibility, determine what you can do to improve access to the site. In addition,
it is crucial to understand who your closest competitor is in your trading areas and identify their strength and weakness and what volume they are achieving.

If other petrol stations exist in the same trade area, Identify their strength, weakness, and what volume they are achieving. You may also need to identify the competitive advantage your new site could gain on its fuel volume.

.2. Asses the profitability of the business.
You are going into the petrol station business not only because you are passionate about this business but also because you want to make money. So, you should see if you would generate a good return on your investment.

3.Find the reasons for selling or renting the petrol station.
Only a few petrol station owners will tell you why they sell their stations. Your job is to find out why they are selling or renting. This will lead you in the right direction and guide you to success in your petrol-filling business. You should avoid renting or buying a petrol station if you discover the owner is selling because the business is not doing well, because of the sanction from relevant authorities for not complying with guidelines, or because of debt and bankruptcy.

4. Check the owner’s license.
Be sure that the petrol station you intend to buy has all the required license and permit from EWURA, NEMC, and other authorities to do what it does. With the increasing number of petrol stations running without approval from EWURA, check a station’s license before closing the deal. It will help you a lot.

5.Know the owners.
Determine exactly who the owners of the petrol stations are. Otherwise, you will purchase, and later you’ll discover that a station is owned by someone else.

How Much Does It Cost to Build a Petrol Station in Tanzania.?

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The first question you will ask when you are considering starting a petrol station is, “How much is it going to cost me to build petrol station from start to finish.”

Starting a petrol station is an idea of growth. If you implement your petrol station idea, it will significantly impact people’s and society’s growth.

The capital requirement for starting a petrol station depends on the size of petrol station. It depends on the number of pumps, the capacity of underground storage tanks, and other complementary services you plan to offer at your petrol station sites.

There are fixed costs like license and permit costs. But the price of mechanical, electrical, and civil work will vary based size and design of your petrol station.

Building a petrol station with only two pumps will be cheaper than one with eight pumps.

Furthermore, the capital required for building a petrol station that sells just fuel will be lower than the one that offers non-fuel products like restaurants, car washes, garages, and supermini markets.

How Much Does It Cost to Build and Complete Petrol Station?

The capital requirements for an intermediate petrol station consists of four main cost groups: civil work costs, mechanical work costs, electrical work costs, and safety & Security costs (mainly firefighting & lighting system). In terms of cost distribution, depending on the size of the petrol station

A typical petrol station with a storage capacity of 2 storage tanks (20,000 liters of petrol and 25,000 liters of diesel) may cost between 200,000US$ and 300,000US$, equivalent to Tzsh 450 million to Tzsh600 million. Depending on the location, this cost excludes land costs.

I hope this help,

Four Right Oil and Gas( Energy) Events and Conferences Worth Attending in 2023 and Beyond in Tanzania.

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With the proliferation of oil and gas and energy conferences, exhibitions, and expos in Tanzania, deciding which events are worth participating in can be confusing.  

With most of these conferences charge high delegate prices. Some local investors contact us to confirm whether registering and attending such meetings are worthwhile for their time and money.

This article lists some of the conferences that are worth registering for in Tanzania’s energy sector.

To be completely transparent, we never earn a commission or represent these foreign event companies in Tanzania. That means we have your best interest in our hearts. We don’t refer these events to you to receive a hefty fee.

But we recommend these events to you because we have attended some of them before. And trust that are good platforms for exchanging ideas, learning from each other, and collaborating beyond conferences.

Here is the list of oil and gas(energy) events worth your time and money to attend in 2023 and beyond.

#1. East Africa LPG EXPO. This is our high-priority conference because the population in East African countries is transitioning from traditional cooking methods (such as firewood and charcoal) to liquefied petroleum gas(LPG) usage. 

Initially, the distribution of LPG was continued to urban areas only, but with rapid changes in the living condition of society, the demand for LPG is increasing very steeply. Now the rural population is also starting to consume LPG. This year LPG Expo will occur in Dar es Salaam from 15 to 16 March.

#2.Tanzania Energy Congress. We attended this event severally and found the people and topics insightful. You should register for this conference to better understand the status and progress of major energy projects like the East African Crude Oil Pipeline (EACOP) project and liquefied natural gas(LNG). 

#Zanzibar Energy and Industrial Summit. This is the perfect event to uncover extraordinary opportunities in the emerging Zanzibar oil and gas(energy) and tourism sector. 

#Tanzania Mining and Investment Forum. Mining and mineral are huge and stable sectors in Tanzania. Although we have never attended this forum before, we strongly feel that it will be the hottest thing in the country.

If you find the article helpful, share this with friends so that together we can ENABlING GROWTH in our country and continent.

 

How to Market and Sell Lubricants Oils(Engine Oils) to Tanzanians and East Africans

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Lubricants oils are the products every motorist, driver, and organization buys in Tanzania and Africa.

And the lubricant oils industry is lucrative and growing at a fast rate in the region. This is why investors and entrepreneurs are introducing new brands of lubricant oils now and then. I hate to tell you this, but it’s the truth. It’s challenging to sell lubricant oils to Tanzanians and East Africans.

Most Tanzanian lubricants users do not know very much about engine oils, gear oils, automatic transmissions fluid, or greases. This is because of the technical nature of lubricants

They need guidance from one or more sources about which lubricants to use for vehicles, motorcycles, boats, machinery, and equipment.

To be successful, lubricant oil suppliers and salespeople need to do big convincing on the performance of your specific lubricants before the customer manages to get his money out.

 

Another reason it is hard to sell lubricant oils to retail and wholesale customers because the Tanzanian mindset is that they need to know where to go when they need lubricant oils.

So don’t get bullied if you show them your lubricant oils to commercial customers and they have a supplier in Dar es Salaam or Dubai who sells the same oils at almost give an away price.

If you plan to sell lubricant oils to Tanzanians or even East African, get a feasibility study and strategic plan to conquer the market. So you should talk about what differentiates your lubricant oils brands and the benefits that customers should expect to achieve.

Also, Tanzanian users of lubricants have already experienced the negative consequences of using fake oils that damage their machines and equipment. This was then when was a proliferation of counterfeit oils in the market. Users of lubricants need to be reassured that your specific lubricant oils will lubricate their machine and equipment and not damage them.

Marketing and selling lubricants(Engine Oils) differs in almost all products and services because of the technical nature of the lubricants.

To sell to retail or wholesale customers, lubricant entrepreneurs and salespeople must have an excellent working knowledge of lubricants and buying behaviors of lubricant users in Tanzania and East Africa.
You also need to know the plan and strategies involved in marketing and selling lubricants to retail and wholesale customers.