How To Start a Cooking Distribution Business In Tanzania-------Details Requirement

Cooking gas becomes so popular fuel for cooking.  Have you ever wondered why is everyone using gas for cooking now?.   The answers are pretty simple.
The first thing first, cooking gas is environment-friendly, cook food faster.  Best of all cooking gas is very affordable

Cooking gas is also called  Liquefied petroleum gas (LPG)  or simply   “GAS” as everyone calls it.       Cooking gas is made up during refining of crude oil or processing of natural gas.

 I don’t want to go deeper into this subject of the formation of Cooking gas.  Let be the story of another day. The topic at hand is how you start, run and make good money selling cooking gas in Tanzania 

The market for this product is growing at faster rates. To save forests, government encourage the use of this product. So even people in rural areas are switching from the use of firewood and charcoal.

This business has attracted a lot of entrepreneurs in Tanzania. And cooking gas retail shops are in every street corner.
I often wonder, how do they make a profit with this intense competition. But the best part is that, as the number of the household switch to this fuel,  demand increase and more customers arise.


    Start-Up Money
You don’t need all the money in the world to start up cooking gas business in Tanzania.  With 1,670,000TZSH  you are staring    mid-sized cooking  gas  business in Tanzania

So before we go any further      let look at  budget for starting this business

Gas cylinders (     15kg gas  and 6 kg.  about 20 pieces each size of cylinders)	TZSH          1,140,000
Business license	TZSH              80,000
Fire certificate	TZSH          100,000
Hose pipe	TZSH           60,000
Dry powder fire extinguisher 6kg	TZSH           90,000
Miscellaneous	TZH             200,000
Total                                  TZSH          1,670,000

Read:      How-to-start-video-production-business in Tanzania

How is profitable is Cooking Gas Business In Tanzania

The average profit you can make for selling   15kg cylinder is  TZSH 7000. You buy at a unit cost of  TZSH 47,000 and resell at TZSH 40,000. So if you sell 10   cylinders in a week will make  7000×10= Tzsh70,000. In a month it is possible to make TZSH 280,000

The profit you can make for supplying 6kg cylinder is TZSH  4000. So once you selling 10 cylinders in the week will make you  4,000×10=TZSH 40,000. In a month you will have  a profit margin  TZSH   160,000

That is just an average profit you can make. But I guarantee you 95% profit if you do a good marketing and you sell your item in a good location.

Tips  To Succeed In This Businesss

   

1:Do  home deliveries

Cooking gas is the constant pushing business, so staying back and hoping customers will knock on your door is not a plan. To stand out you should do home deliveries with no extra charges.

Considering you’re starting with limited fund,   so delivering cooking gas to the customer’s doorstep without extra costs. might be stressful. But using a cheaper alternative to supply gas can be easily solved the challenge. So  considering using bike instead of car

2:Pick  good marketing strategies

Cooking gas is the personal contact business. So the word of mouth will really work. Approach a friend and family members and tell about your business.  The location is everything. Locate your shop in the area accessible to your target Customers. If you are reliable and you deliver on your promise.  Customers will become a friend of your business.

  Challenges In s  Cooking  Business

1:Fire explosion

Cooking gas is  flammable in nature. That’s can catch fire easily. To stand out, observe gas leakage and fix a problem quickly. Most importantly get fire extinguisher in your store

2:Price volatility

Cooking gas business is the boom and bust business due to the prices fluctuation in the global cooking gas market.  So when the price of cooking gas in the global market drop. It affects the local price as well. This ruins your business as the many customers saves money on buying gas. This will  drop your sales and profit as well.

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How To Start Video Production Business In Tanzania {COMPLETE BUDGET AND CAPITAL }

Video production  is the kind of business anybody can start in  Tanzania.  You can start as small-scale video production entrepreneurs  and expand your business  as grow.

Tanzanians love to celebrate, for this reason they organize a lot of events like birthday,  weddings,  graduation,  anniversary and other commercial events. So in all these events need videographer, so as people can recall the event that happened in their lives.

Also private and government and larger corporations in Tanzania hire a videographer for the commercial events and conference.

Not to mention,  music industry  Filim industry a.k.a Bongo Muvies (as we call here in Tanzania) where video production business is done in daily basis.



In my lifetime, I have seen a guy who started too small , he had no even a  laptop. So he used to borrow a computer from his friend for editing. So he recorded wedding parties in his local areas. And today  has rent a good office in Dar es salaam equipped with  high-quality Video Camera, Computer systems (Apple) and  has hired 6 permanent employees.

So what is video production business
This business involves recording a particular event based on customer needs. After recording you edit  the video. Then you transform the video into disk such as Dvd so as your customer can easily watch  the video.



Budget 

This is the start up money if you want to go into this business as small scale investor. 

Note:This budget is in Tanzania shilling

Item No	Description of Item	Quantity	Unit Price	Total  Price
1	HD (High Definition) Video Camera	1	2,500,000	2,500,000
2	Lightening stands	2	150,000	300,000
3	Camera stand	1	100,000	100,000
4	Laptop	1	500,000	500,000
5	Projector	1	600,000	600,000
6	Labor Cost (Video Editor,)	1	70,000	70,000
7	Camera Man	1	50,000	50,000
8	Total Price
Total  Cost                                              4,120,000

Tips To Succeed In This Business

1. Get the equipment

To offer videography services you need to have equipment that would help you in offering quality services on time. And the equipment cover everything from  video camera, stands, computers, projectors, and stands
The important item in  video production business is Video Camera. The low-resolution camera will result in low-quality video and decrease your profitability. So look for a popular brand like Sony to buy HD (high definition video Camera). If you produce a great video on time, you existing customers will recommend you to their friends and family members. And you will start to  your phone is ringing with loaded of customers looking for your services




       2.Hire assistants
In your crew, you should hire video editors and  Cameraman. If you don’t have a background in video production.  Handling camera is easier than editing videos.
So at the beginning, you can only hire video editor and pay him  per project he accomplish.



We would love to hear you thought. Please leave your comment below

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How To Start Restaurant Business In Tanzania------Comple Guide

                          

The restaurant is the best business to select in Tanzania.  The best part of the restaurant is, it apply in any economy. Food is a basic commodity we can't live without it. So despite the economy still people will find a place to eat.

In the business perspective, a business that meets people’s  demand will grow by leaps and bound. And Restaurant business is like that. People need food continuous. So you are assured people will look for good food.

Despite the truth that you can make good money running a restaurant in Tanzania,  but  It isn’t that easy. I said It isn’t easy but not impossible. With  good plan, you going to smile to your  bank account with  a  money flowing to you like a river

There are different kind of Restaurant business you can set up business in Tanzania.  But In today’s article will concentrate on smalls scale restaurant


Marketing strategies   

To reach your targeted customer you need to use different marketing  strategies. The following are marker strategies to consider for your restaurant business

1.    Utilize Social media

Thanks to the technology today,  you can reach out many customers than any time in human history.  The tips here you set up a facebook page and you invite your friends and family members to like your page. Then you share your menu items and relevant content. Over time, your message about your business will go to many people and start to  reap the huge profit from your business

If you get a royal customer you can create  WhatsApp group for your customers and keep them with latest updates of your products. This will help you identify their needs and change things based on customer demands.

  2:Use word  of mouth
The restaurant is the people business. Friends and family members are your first customers. Begin with them first. If  you serve  them  with delicious food, have friendly services and fix problem  quickly, the will recommend you to their friends that way your business grows

Products and services
The first thing first is to identify foods categories and items that you are going to offer.Depending  on the demand and your target market you can offer wide range of  food products  like chicken, chips,  salad, burgers  s  and beverage such as bottle water,  Soda, Juices, icecreams



Tips to succeed in this business
 

1:Location is a King
 

You might have a great concept,   money and all resources to go into this business. But if you target the wrong location. You will never make it and waste your precious resources(time and money)
The location is vital for the success of the restaurant business. The best location for your business should accessible and where people are frequently visiting. Parking space and dense traffic areas will be suitable.
Maintain the place clean because people love to eat in the clean places.

2:Identify the fast moving food
 

Although you might be selling various foods in your restaurant but you should focus on the food your customer really love. Forexample one of my friend who owns a restaurant here in Dar es salaam,  he told me the fast selling food in his restaurant is Chicken.
So once you identify the fast moving goods make sure is constantly available in your restaurant. This will generate more profit than concentrating on  many items  that your customer do not really want to buy

3:Hire a great Chef
 

Offering the amazing food is the primary requirement to success in the restaurant business.  Poor cooking skill will make customers hate your restaurant. The tip is to hire a great chef. Use what you sell. Make sure you test flavor of your food before  you sell to  your customers
4:License and permit
 

If you want to operate without getting a legal trouble, make sure you get all licenses and permit relevant authority. This include,  Fire certificates etc

5:Build strong relationship with your supplier. 

If you are reliable and trustworthy you can negotiate a deal with your supplier buy foods and drinks at a fair price and resell to your customer at competitive rates. This 

                                                                  Start-up Money
If you are wondering how much it needed to launch you Restaurant business in Tanzania.  The below guidelines will help you to get the really figure as the start up cost depend on the location and resources you have.  But here are the basic requirement to include in your budget

1:Rent cost
Your start  up cost will  include security deposit  for first-month rent
 Cost for  electricity and phone   In  the first month

2:Material Cost
Restaurant  table and furniture
Cost for  the  first supply of food and beverage
License and permit  costs
 

3:Initial labor Cost
This includes initial salary of your three or for first employees.

4: Marketing and advertising   Costs
This including  Restaurant Menus  and business cards

                                                                      

                                                                        Risks
Any profitable business must have its own risk.     As it takes the time to market your new Restaurant get people to like your restaurant.So you may not make enough money to cover all of your expenses in the first six months.  So In your start up cost plan, put extra cash  for that..

Dear readers will love to hear your thought  If you find this article or you have any input please leave your comment below.

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The Ultimate Guide On How To Start Petro Filling Station In Tanzania

 

 

 

 

We all know Tanzanian oil and gas sector is the industry with amazing opportunities. Unfortunately, only a few have access to information regarding emerging opportunities in the gas sector.

And the sad reality is this, people having this information are unwilling to share with others.
I wonder why there is restricted information in this sector.

Okay, that is the talk of another day. The topic at hand is how to set up petrol station in Tanzania.
Article explains how to start petrol station with detailed requirements on initial capital needed to start this business, profit potential you make in this business and tips to succeed in this investment.

Let’s get started
Despite the fact that Tanzania has not recent oil discovery but we are the largest consumer of petroleum products.According to international energy agency, Tanzania consumes 35,000 barrel of oil refined products in 2013.Is for this reasons petrol station is lucrative business in Tanzania.

Why petrol station is the fantastic business
In business sense, An outstanding business is the one which offers products or solutions that are in serious requirement by people
This is true for this investment. Why? because everyone is in contact with oil-related products(diesel kerosene and gasoline)

Thousands of automobile, vehicle, and motorbike in Tanzanian run by oil product, Factories, organizations, medical centers, educational institutions, media house all have generators powered by diesel fuel. Not to mention Media house, and town halls.

With the growth of Tanzania economy by 6.5 percent indication that many Tanzania would own their own cars and generators since because economic growth is proportionate to the enhancement of living standard of the individuals. And low-income earners will start using kerosene instead of firewood and charcoal.

Guess what if you start your own petrol filling station in Tanzania? The reason is simple: you make windfall profit
Bonus
The demand of this business is huge even significant supplier (such as Puma Energy, Total, Oryx) often look for individuals who need to be marketer to fund and give him resources to attract for this business.

How much profit you create from this business
If you are looking for investment with excellent return then petrol station is a best investment avenue for you
In terms of profit, you get not less than 210 Tsh per liter. Consider you get profit of 210 Tsh a liter
If you sell 5000 liters a day you get edge profit 210 *5000=1,050,000Tsh
In a month you get profit of 1,050,000 *30 days=31,500,000 Tsh. Can you imagine?

That is the lowest profit you can make after all expenses, And if you obtain a wonderful supplier like PUMA Energy you make big payoff  since they have reasonable prices.

Tips to achieve this business Initial Capital Start with scale you’re comfortable, but for completely average petrol station, preliminary investment ranges from 450-500million
Land Is essential to purchase land with enough space for vehicles, The prices of land differ from one place to another And fantastic new is this, petrol station not really essential to be in the city with inhabitants like Dar es Salaam, you can also position you fuel station in distant locations whereby another supplier is hardly ever to reach.
 

Risk 

In regard to risk is the decrease of oil quantity, because Oil has an inclination to reduce in volume through  evaporation especially during hot times so of loss of 100 to 1000 liters per month is commo

Permit and license
Oil and gas business is regulated business register your business  (BRELA) Business registration and licensing   agency in Tanzania BRELLA and get approval from EWURA ,TRA and OSHA
Security-
To prevent loss and harm of your property hire 3-5 people who will take care of the petrol station

Attendants- Hire people to provide services of filling cars and truck
 Manger- Hire one person who would handle and control all activities in the petrol station you can also hire   cashier to assist in handling expenses and income

Final Words
Regardless of the present oil price recession in the global market, petrol filling station is still profitable business in our nation since oil prices variation is the regular scenario when you take part in any oil and gas business Star now to invest in Tanzanian gas and not someday because next day will never arrive

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How To Start Solar Energy Business In Tanzania- Complete Guide

                             

In Tanzania as emerging market there are huge market for solar power business.

To be completely transparent, the reliable and affordable power supply is the biggest problem in Tanzania. With this mobile phone revolution in Tanzania.

Many people have a mobile phone but, they should walk long distance to charge their mobile phone. As I write this article at night, I am using power from the solar panel to run my laptop.

With the biggest power supply problem in Tanzania, Some small shops specifically in rural areas close so early because they don’t have electricity.

What if you start your solar business in Tanzania and help this people operate till night while you make big cash in return.

From business perspective, the business that depends on people’s need will grow by leap and bound. That’s why starting your own solar business is the wise decision.

Solar power is business for everybody, even if you don’t have a cent in your pocket right now, read this article all the way to the end and you will realize how easily solar power can be done in Tanzania.

Tanzania power supply is the substantial challenge

The market for this business seems to be endless in Tanzania because of serious electricity problem in our country.

Imagine this, Tanzanian population is approximately 50 millions. But only 42 percent of households have access to electricity with a wide gap, 40 percent in urban and only 2 percent of rural household have access to electricity.

According to the recently published report of Africa progress Panel that Kofi Annan a former Secretary-General of United nation is the chair of such panel reveals that, It would take average Tanzanian 8 years as much as electricity average American consumes in one month.

Even our government is selling this idea to people. Government wants all the health center dispensaries that are not connected to the grid country wide to be provided with solar power.

Also to make this more attractive option and affordable to citizens, the government has removed value added tax (VAT) and remove import tax to all solar components, so is the best time to start the business because when government now comes in, they will look for YOU

Why Solar Power Is The profitable business in Tanzania

In reality solar will remain to be lucrative business in Tanzania even in bad economy because of the following reasons

1.The Rising demand for electricity

The rising demand for electricity in Tanzania is growing at alarming rates, because of the increase in population, industrialization, and booming extractives activities of mineral and natural gas.

Tanzania’s total installation capacity is 1583 Megawatts, and the electrification rate is 15.5 percent a year, Tanzania aims to boost power generation capacity to 10,000 megawatts by 2025.

In reality, The transmission line  will never cover many areas in our country. So the cheap, efficient solar electrification plan should be introduced to lift Tanzanian from the darkness in the short period of time. That’s where you come in with your solar business and grabs this opportunity in Tanzania.

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2.Solar power is the cost-effective plan and can reach many Tanzanian population in short amount of time

Technically speaking, Many rural household population spend more money in purchasing fuel like Charcoal, kerosene, diesel, as the many Tanzanian own mobile phones and they use it in regular basis for business purpose, to chat with friends, family, ,

But you they can save a lot of money because once the solar power unit is set up you can enjoy free electricity for a very long time.

3.The desire to clean energy that are environment friendly

In reality, most people still depend on the expensive and hazardous fuel such as diesel, Tanzania rural population relies on kerosene, firewood a charcoal which pollutes household air.

So unlikely fuels like Kerosene, firewood, solar electricity prove to be better options.It causes no pollution and doesn't harm environment.

 Three Ways To Start Solar Power Business In Tanzania And Make Money

Anybody can start a solar business. Since there are multiple ways you can enter the solar market in Tanzania.

1.Become Solar Power Companies Associate In Tanzania

If you are keen to make Tanzanian go to solar but you have nothing to invest in this business, associate with solar companies is the way to go.

So you will introduce the solar products of the company you present to the  customers and get a commission for each purchase being made.

The good news is you don’t have to be a veteran technician to go into this business, even if you've  little knowledge about solar power, the company you present its products will give you all information to sell solar power solutions to people.

So approach solar power companies in Tanzania and get paid based on your agreement. To make more money, pick reputable companies that have quality solar products that customer will be confident to buy.

2.Become distributor

There a lot of manufacturer of solar products such as panel, solar batteries, charge controller and solar inverters, To go to this avenue it requires large start up capital, because you will need to import solar related items from major manufacturers abroad to Tanzania.

China is the among of greatest manufacture of solar products, you can buy direct from manufacture and resell products in Tanzania

3 Sell solar products

You buy solar related products from distributor and you resell them to final users. In this type of business model you don’t keep a stock because you buy small quantity of solar items. It doesn’t require large start up capital to get started. You can start with the amount you’re comfortable with, and grow your business day by day.

4 Become a solar a contractor

Your job will be installing solar power systems for homes, firms or business or even government agencies.

Also solar contractor earns money by doing maintenance on the solar system. Solar items last longer but repair and maintenance are vital after sometimes

Tips To Succeed In This Business In Tanzania.

Figure who will exactly Buy from You

Target the right customer is vital in the success of any business. In the solar power business in Tanzania, you can have 3 groups of customer. Here I will explain each one and you will find your fit

• Tanzanian rural populations who have no access to electricity
• Tanzanians who already connected to the grid but they’re unhappy with frequently cut off electricity that ruin their business and want to cut the cost of high electricity bills. Many cement industries in Tanzania want to reduce operation cost. So they will opt for cheap solar power supply.
• Government agencies and NGO

These 3 groups of customer are happy to buy from because solar power saves them a lot of money and makes their life easier and fun.

Solar business will survive even in the recession or bad economy when every business goes into bankruptcy. Because nobody wants to stay in darkness, Nobody wants to walk longer distance to charge their mobile phones.

Can you do a favor? If you have any questions/suggestion shoot me an email at Hussein.boffu@tanzaniapetroleum.com. or  +255655376543

And I will be glad to answer you

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How To Register Your Business In Tanzania

 

If you’re  keen on doing legitimate business in Tanzania, then you should register your business with Business Registration and Licensing Agency (BRELA) an agency empowered by the government under act  No 30  of 1997 for business registration in Tanzania.
Registering your business is easy and fast. But it can be a little bit frustrating if you don’t know where to steps even the cost of registration.
In today’s article, I will show you how you can easily register your business in Tanzania and help you do it all by yourself anytime you ready.

Available  business registration options in Tanzania are

1. Business name
2. Private company
3. Public company
4. Foreign company

In this article, I want to cover a subtopic of registering a business name and private company because is what many business owners do in Tanzania.

Why You should register your business
Before moving any further, let’s see why is important to register your business in Tanzania.
There are several good reasons why it makes sense to register your company in Tanzania

1.You can attract funding
Your bank can easily get you money. For example, if you registered your company and you get an order to supply products worth 8,000,000. You can show them and domicile your account with them. This gives bank confidence that the money they are given you will be recovered. And the bank is assured of protection if the company is registered.
2.Gives your business professional feel
Once your register your business will open operate account and you’re going to give your bank details to all your customers. This will let them know that their money is safe  with you and they will surely receive what they ordered
3.Secure your brand.
Registering your business name gives you the safety of exclusively because nobody will be allowed to use such business name. For example, I set up my this website  2 years ago. And I intended to use the name of my website as a business name. So once I went BRELA for registering www.tanzaniapetroleum.com as a business name I found the name was already taken by another business person in Tanzania. To stand out I picked up an alternative name. Never allow this happens to you

5 StepsTo register your business in Tanzania
Now, let see how you can register your business in Tanzania
In Tanzania, all business registration begin at BRELA (An agency responsible for business registration and license
Step 1.Select name for your business name
Once you select the name, Go online into   BRELA website and search availability of your name.
submit your business name for name search. If the name you search is unavailable, it might already take by someone else,  or it shares close similarities with the existing business name.So you should repeat the process with different names and you will finally find one.

The good new is you don’t need to physically visit BRELA office for business registration. BRELA has an online registration system that makes business registration much easier and fun.

To perform your business search and register your business name, create an account in the online Business  Name Registration System (OBRS). In this online registration process, enter your email address, and phone number.

For business name registration, you will be required to provide a phone number, email, and box.

And then you will receive an email notification to confirm your registration and you will be able to search or even register your business name.
Then after. BRELA will approve your registration and you will make payment through  CRDB or NMB Bank
BRELA will send you an original certificate via your postal address. This process is quite simple and doesn’t require to be a computer expert. But if you feel this is stressful work ask for help from someone else.

Step 2.
You should prepare two important documents that are   memorandums of the company and article of association. And you will be required to fill a form No. 14A that gives detailed information about office location directors and company secretary.
Fill the form correctly with CAPITAL letter, submit an original filled form to BRELA and pay an applicable fee based on the magnitude and share capital of your business.  and get back with  a photocopy of filled form as a reference- This process it takes two days
As I said earlier, business registration fee in Tanzania is categories based on company share capital. But the cost for business registration in Tanzania is cheap that any serious entrepreneur who takes his business seriously can afford.
Now let see the structure of business registration fee
   For company whose share capital is  The 20000 to 1 million
Registration fee     Tshs 95,000/=
Filling Fee     Tsh 22,000 for each document, because you’re supposed to have 3 documents =22,000 ×3=66,000
Stamp duty fee for each copy of memorandum and article of association is TSH 5OOO because you nee 3 copies   5000 ×3= Tshs  15000
Stamp duty fee for form No 14b   Tshs  1200
So  Total cost for a company with share capital from 20,000 million to 1 million
Is 95,000 + 66,000+ 15000+ 1200=Tsh = 177,200
For a  company with  share capital 1 million to 5 million
Registration fee=  Tshs 175000
Filling fee 3 ×22,000=66,000
Stamp duty fee 3 copy of memorandum and article of association =  3 ×5000=15000
Stamp duty fee for form No 14b Tsh 1200

Total cost is    Tshs 257,200

Forcompany with share capital 5million to 20million
    Total Registration Cost Tshs 342200

  For a company whose share capital is Million 20 to Million 50 

Total Registration Cost is  Tshs 372200

                 For a Company whose share Capital is More than 50 Million    
Total registration cost is 522200

SUMMARY FOR BUDGET IN COMPANY REGISTRATION IN TANZANIA

	CompanyWhose share Capital;	Total Registration Cost (Tanzania shillings)
1	20,000 to 1 million	177200
2	1million to million 5	257200
3	5Million to 20 million	342200
4	20 million to 50million	372200
5	More than 50 million	522200

Stage 3
Congratulation you have already registered your company in Tanzania. You should get back to  BRELA office after few days and receive your certificate of incorporation. It takes  2 days for a BRELA to process your company  certificate.
All these processes take only 5 working days.
Step 4
You should get TIN (Tax Identification number). But to get TIN you should first pay initial tax. The tax approximation depend on the annual profit you expect.
Then they 30 of the  your annual profit is what will be regarded as your tax.
For exampale, if your business will generate 2,000,000 profit each year
Then you will pay 30% of 2,000,000 that’s 600,000 as a tax

Step 5
Get a business license, and depend on the type of business you are doing. Each business has its specific license.

I hope this information are helpful and will point you toward register your business in Tanzania.  If you have anything please do not hesitate to comment below or reach me out ta Hussein.Boffu@tanzaniapetroleum.com

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