If you are looking to get started in the oil and gas industry, but don’t have the resources to compete with the major competitors, consider starting your own diesel supply company. Diesel supply is one of the easiest and most cost-effective ways to get involved in the oil and gas sector.
Diesel supply requires deliberate planning, pooling cash, commitment, and hard work, like any other business. Here are 5 steps that can help you get started in this sector or work.
1. Do Your Due Diligence
Just like any other venture you take in your life, it is crucial to do your due diligence. You wouldn’t jump into an industry bling, would you? We hope that you answer no that.
Along with doing your due diligence, it is crucial that you make feasible studies of your competitors work. This will allow you to see and avoid their past mistakes and to jump on the same level as them, without the consequences. These studies will also be able to help you identify the best price trends of diesel and more potential markets.
2. Register Your Business
Your new diesel supply business needs official registration to open a business account. This means that you will need to obtain a license and permit in your area before you are allowed to start a business in this industry.
It is important that you visit the correct authority in your state so that you get the proper information about how you can obtain these documents. If you use the incorrect licenses and permits, your business could suffer major consequences.
3. Draft a Business Plan
To ensure that your diesel supply company grows, it is crucial that you draft a business plan. Diesel supply companies, along with oil and gas companies, require a source of capital to become established.
Because you are a supplier, you will need to have cash in your pocket before working with any clients. By drafting a business plan, you will be able to create the map to your future. This will help you set goals, budgets, plans, and more to ensure that your business gets from point A to point B with the least amount of hiccups as possible.
We understand that drafting a business plan is a burden, but is something you must do for your new business.
4. Secure Capital For Your Business
As mentioned before, it is crucial for your diesel supply company to start with a strong source of capital. You will be required to supply the diesel to your customers first, before you are compensated for any work.
If your business is struggling to come up with the cash needed, there are many financial solutions. Oil and gas factoring is one of the easiest, and fastest, ways for new business to secure cash for their growing business.
Oil and gas factoring works by allowing a factoring company to purchase your outstanding invoices to advance up to 96% of the invoice with low rates. This is beneficial to startups and new businesses because it allows you to get the cash that is already owed to your business – without taking on any additional debt to your name. This will set you up nicely for larger financing ventures in the future.
5. Acquire a Tanker or Truck
To run a seamless diesel supply company, it is important that you acquire at least one supply tanker or truck. Although you cannot run this business without one, what we are suggesting is to own a personal supply truck or tanker. This will allow you to serve more customers – faster. This will free up availability to ensure that you can serve as many customers as possible, and keep your current customers happy.