COOKING GAS (LPG) RETAILING BUSINESS PLAN

Cooking Gas (LPG) Retailing Business Plan

TABLE OF CONTENTS

1.0      Executive Summary

2.0    Business Description

2.1    Business Overview

2.2    Vision Statement

2.3    Mission Statement

2.4    Business Objectives

2.5    Products and Services

3.0    Market Analysis

3.1    Industry Overview

3.2    Target Market

3.3    Market Size in Lagos

3.4    Competition Analysis

3.5    SWOT Analysis

4.0    Marketing and Sales Strategy

4.1    Marketing Objectives

4.2    Branding and Positioning

4.3    Pricing Strategy

4.4    Promotion Strategy

4.5    Sales Forecast (First 12 Months)

5.0    Operational Plan

5.1    Site Location and Layout

5.2    Equipment and Infrastructure

5.3    Licensing and Regulatory Compliance

5.4    Operating Hours

6.0    Organizational Structure

6.1    Management Team

6.2    Staffing Requirements and Salaries (Monthly)

7.0    Financial Plan

7.1    Startup Capital Requirements

7.2    Projected Income Statement (Year 1)

7.3    Break-Even Analysis

7.4    Cash Flow Forecast (First 6 Months)

8.0    Risk Analysis

8.1    Business Risks and Mitigation

9.0 Appendices

Appendix I: Startup Budget Breakdown

Appendix II: Licensing Checklist

Appendix III: Facility Sketch & Layout Description (Narrative)

Conclusion:

1.0 Executive Summary

The use of Liquefied Petroleum Gas (LPG) has significantly increased across urban Nigeria, especially in Lagos State where population density, urbanization, and clean energy adoption drive household demand. BlueFlame Gas Depot seeks to capitalize on this growth by establishing a fully licensed and safe LPG retail outlet in Ikorodu, Lagos.

The depot will cater to households, restaurants, food vendors, and small businesses. We will provide:

• LPG refilling services for 3kg, 6kg, 12.5kg, and 50kg cylinders.
• Sales of new cylinders, regulators, hoses, and stoves.
• Bulk supply for corporate kitchens and food vendors.
• Doorstep delivery within a 5km radius using tricycles and delivery bikes.

The business will prioritize safety, affordability, and accessibility. Our target startup capital is ₦18.5 million, covering the cost of land rental, construction, installation of LPG tanks and dispensers, licensing, initial stock, delivery equipment, and working capital.

We project a monthly revenue of ₦3.5 million by the 6th month, with a breakeven point expected within the first year. Profitability is supported by steady demand, high margins on accessories, and reliable LPG sourcing partnerships.

2.0 Business Description

2.1 Business Overview

BlueFlame Gas Depot is a proposed small-to-medium scale LPG retail and refilling outlet. The depot will operate under national safety guidelines provided by the Department of Petroleum Resources (DPR), Lagos State Safety Commission (LSSC), and Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).

2.2 Vision Statement

To become a leading and safest provider of household cooking gas in Lagos State, promoting clean and affordable energy for all.

2.3 Mission Statement

To offer fast, safe, and reliable LPG services through modern infrastructure, trained personnel, and outstanding customer service.

2.4 Business Objectives

• Establish a fully licensed LPG retail outlet within Lagos State in the first 6 months.
• Achieve ₦40 million in annual revenue by year two.
• Create employment for at least 10 people in the first year.
• Offer doorstep gas delivery within a 5km radius.
• Operate a zero-incident safety policy through rigorous staff training and compliance.

2.5 Products and Services

• Refilling Services: 3kg, 6kg, 12.5kg, 25kg, 50kg cylinders.
• LPG Accessories: Gas cylinders, regulators, stoves, valves, pipes.
• Delivery Service: Real-time orders via phone/WhatsApp and mobile agents.
• Bulk Supply: For restaurants, bakeries, and food vendors.
• Cylinder Swap & Purchase Plans: Buy-back or swap for customers upgrading cylinders.