Natural resources are in abundant supply in Nigeria. These natural resources range from mineral, oil, and forest reserves among a vast variety of other countlessresources. Today, our article will focus on one of such mineral resources. Nigeria has a lush forest reserve stretching from the south western part of the country to the south eastern part. These forest reserves supports Nigeria’s paper and pulp industry. Without them, Nigeria will have to import a bulk of the resources needed for paper production. However this does not mean that there is zero importation of paper and pulp.
As there are still some deficits in supply which needs to be filled up through importation. pulp article will provide you with information you need on starting a paper and pulp production business in Nigeria.
The Paper and Pulp Industry in Nigeria
The paper and pulp industry in Nigeria is huge. Paper production technology has witnessed tremendous improvements. Although there has been massive investments in this sector, there are still opportunities for investments. If you have had interest in this sector of business before, then you are at the right place as we will disclose to you how to take advantage of this great opportunity.
New investments are seen in this industry as more paper mill industries are being commissioned. More publishing houses which produce newspapers magazines as well as handle major production contracts constantly springing up. All of these new and existing businesses require paper and pulp to sustain production. There are structural requirements necessary for the success of any business, as production skills alone are not enough. However with these as a guide, you will be able to weather the storm in setting up a thriving paper and pulp business.
Writing a Business Plan
Your business plan is the guiding light for your business. Without this document, you will be setting up your business to fail. The business plan is an important document and should get due attention. One way to do this is by seeking competent help why hiring a business consultant any other business professional skilled in its writing. When writing your business plan, every detail pertaining the financial aspects of your business should be clearly worked out. This is because if you require funding, investors will need to know if your business is worth investing in or not. Also, this is necessary to avoid running into financial difficulties at any stage of the business.
Choosing a Suitable Location for Your Business
This is an important decision to make when setting up your paper and pulp business. Without choosing the right location for your business your business is likely to fail. It is only logical that you locate your business close to where your source of raw materials are. A major raw material for your business will be wood. This means that the location of your business should be close to a forest reserve. Choosing a location far from your source of raw materials will impact negatively on your business. When choosing a location for your business, it’s important to work within the regulatory framework as stipulated by government.
Registering your Business
This is another requirements you need to meet when starting your business. Without business registration, your business will at best exists as an illegal business. Registered businesses boosts client confidence. Your client will have peace of mind doing business with you than when your business is not registered. As a registered business, you are able to bid for contracts and other similar opportunities. To register your business, you will need to do so with the Corporate Affairs Commission (CAC). This federal agency issues all the requirements and guidelines for doing business in Nigeria.
Funding your Business
A paper and pulp production business is capital intensive. This means that you have to have the required capital before commencing business. If you will be funding your business through debt financing, then you require a collateral to obtain such funding. Also, your business plan would form part of the requirements for obtaining funding. You should not commence business activities without settling every detail regarding funding. Doing so will lead to a lot of financial difficulties.