Palm oil processing and its distribution in Nigeria has become big business. This is characterized by the many new entrants investing with the hope of reaping considerably profits. With the zeal to invest comes the need to put the necessary structures in place. These structures essentially guide the business to profitability and stability. An important component required for starting a palm oil production and distribution business is the business plan.
This is the road map that guides and coordinates the activities of the business. It streamlines all productive activities with the aim of achieving maximum profitability.
The executive summary of a palm oil production and distribution business provides a general overview of the business. However, the details are not provided but a summary of what the business stands for is provided. It is important that the executive summary should contain certain important details such as the registration status of your palm oil business. This should also include the scale of operation. However, the details of these will be provided in subsequent sections of the business.
Refined or extracted palm oil and its bye products form the core products and services offered by any palm oil production and distribution business. Here, the services should be highlighted. Most palm oil production and distribution business either sell their products on wholesale, retail or offer both types of services.
The distribution of these products needs to be well planned. Putting in place effective distribution channels is necessary to the growth and sustainability of the business. Thereby significantly increasing the chances of growth.
As a palm oil production and distribution business, it is very important to have a clear vision of where the business enterprise is headed. This clarifies and streamlines the production activities and channels the energy into making sure that the vision of the business is actualized. This can be achieved faster through the use of cost effective measures that can significantly drop the cost of production while increasing the likelihood for profit.
Here, the aims and values of the palm oil production and distribution business are projected. As a palm oil production and distribution business, you have a clear destination/goal you would like to reach or achieve within a set period of time. It is therefore imperative that the mission is clear enough to act as an impetus and guide the business into realizing its lofty mission objectives.
For a proper understanding and knowledge of the palm oil industry, it is important that proper analysis be carried out. This highlights the production and distribution trends within the industry. Knowing these is very crucial to how the business will perform. Market analysis reveals consumer behavior and examines if these have been fully satisfied by existing palm oil production and distribution businesses. Knowing how to take advantage of this can significantly increase your market share.
Your target market is where the bulk of your patronage will come from. It is therefore necessary that you possess a good knowledge/understanding of your target market. In looking at the target market, other factors such as competition is also considered. If you must do well, then it is necessary that you put in place the right strategies to outperform you competition. By providing superior services, such as an improvement in the quality of your palm oil, you will have the upper hand. This in turn results in gaining an increased market share.
Knowing your edge and exploiting it can be phenomenal to the growth of your palm oil production and distribution business. This starts from first knowing the areas of your strength and how these strong points can be used to the advantage of the business. Of course the areas of weakness of your close competitors should be strongly considered. For your competitive advantage to work to your favor, exploiting this strength is necessary.
As a prelude to the kickoff of business, drawing up a sales projection or forecast will be beneficial to the business. This goes hand-in-hand with studying available market trends. Knowing how the palm oil production and distribution business fared during the previous year can provide vital basis for measuring future performance. However, getting information can be difficult at times.
An easy way of getting a semblance of previous market performance is through the current participants in the market. Who? Your competitors of course!