Biodiesel which happens to be a good substitute for the conventional diesel is a renewable fuel that doesn’t pollute the environment (i.e. clean burning) and it can comfortably work on any diesel powered machine. Biodiesel is produced from cooking / vegetable oil, animal fats, soybean oil and any other reliable source of fats and oil.
In recent time, especially in the United States, the awareness and use of biodiesel is rapidly increasing simple because it has been proven to be environmentally friendly and efficient when used in any machine that runs on diesel. It has lower emission compared to the diesel produced from petroleum.
Many investors are now going into the production of biodiesel because it has been proven to be a better substitute for diesel and that is why it has now been produced in commercial quantity in the US thereby reducing the importation and dependence on petroleum – it is now available nationwide. It is indeed good for the economy of the United States of America.
Starting a biodiesel production company is capital intensive and it also requires serious planning and hard work but the fact remains that it is indeed a profitable business to go into and it is still very much open for more investors to come in.So if you are thinking of starting your own biodiesel production company, then the following tips might guide you from start to profitability:
Starting a Biodiesel Production Company – Sample Business Plan Template
1.Conduct Your Research and Feasibility Studies
Starting a biodiesel production company is not a business that can be started without adequate preparation. If indeed you want to be successful in any form business including starting your own biodiesel production company, then you must spend time and money on research and feasibility studies.
The truth is that if you effectively conduct your research and feasibility studies, you are able to make informed decision whether to go ahead with your desire of starting your own biodiesel production company or to call it quit when you know you don’t have the capacity to confront the challenges that comes with starting and running such business.
2.Write a Business Plan
Your business plan is a document that clearly describes your business and outline goals and roadmaps that leads to the success of your business. It is indeed a document that describes the future or your business. Hence, if you truly want to start your own biodiesel production company, it will pay you to write a comprehensive business plan and ensure that you religiously follow the business plan as you run your business.
It is also advisable to hire professional business plan writers to help you write your business plan. Although, you might have to pay them, but the truth is that it definitely would be worth your time and money.
3. Incorporate Your Biodiesel Company
If you have carried out your research and feasibility studies and you have also written your business plan, then the next thing for you to do is to incorporate your company. The truth is that you can’t start a biodiesel production company without legally registering the business with the Federal Government of your country.
4. Apply for Operation License and Permit
Because of the nature and hazard involved in biodiesel production, you would be required to meet up with certain environmental protection standards before you can be issued license and permission to start your own biodiesel production company. As a matter of fact, your facility would be inspected to ensure that you have in place spill prevention control and counter – measures plan, and also they would ensure that you meet up with other expected standard before your application for a license and permit can be approved and issued.
5. Lease or Acquire a Facility
Starting a biodiesel Production Company requires that you lease or acquire a facility that is outside residential areas because of the danger of air – pollution and hazardous discharge that goes into municipal waste system. It is only normal that your facility will first be inspected and approved before you can be allowed to go into the production of biodiesel. So, ensure that you get a facility that is located in an industrial area.
6.Employ Competent Staffs
A biodiesel production company is not a business that you can start as a sole proprietor; you would require competent employees to work with you. Therefore, when you are hiring employees, ensure that you only recruit people that know what it means to work in an industry that is as delicate as the biodiesel production company. The truth is that serious caution should be taken while producing biodiesel because accidents in this industry can be very devastating and can even lead to death. So, you would not want to employ people that can’t obey safety rules that are put in place by your company.
7.Market Your Biodiesel
You just have to formulate strategies that can help you effectively market your biodiesel. The fact that the use of biodiesel in the United States of America and in other countries of the world is on the increase doesn’t mean that you won’t have to take your time to study the market and know how to penetrate. When you go out there to market your biodiesel, your selling point should be anchored on the fact that biodiesel is safer than petroleum diesel and that it has lower emission when compared to other fuels. It is important to state that the market for biodiesel is on the increase and if you position your company properly, you will have a large chunk of the available market.
It is no doubt biodiesel has been proven to be a good substitute for petroleum diesel and it is fact that the industry has a very bright future. If you have taken your time to go through all the tips listed above, and you are cock sure toraise the required capital, then you should go ahead to start your own biodiesel production company and you will surely succeed.
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