Business Concept for Briquettes –Did you know that over 82% of Kenyans who live in urban areas rely on charcoal for their cooking fuel? Or how about the fact that Nairobians consume over 700 tonnes of charcoal per day? According to the International Center for Research on Agriculture and Food (ICRAF), over 88 tonnes of charcoal dust are produced in Nairobi alone every day. . . and can you guess where all of this waste goes?
Some of it is dumped into drainage pipes, where it eventually causes sewerage systems to become clogged. Some of it is simply dumped by the side of the road in nylon sacks in the middle of the night when no one is around to see it. But did you know that this vile waste can actually make you a millionaire if you know where to look? If you are looking for a business idea that is both profitable and beneficial to the community, you might want to consider starting a business that converts waste into briquettes.
In general, the business of briquettes is doing quite well these days, thanks to the fact that many restaurants and institutions are looking for new ways to cut their costs. Moreover, this craze is not limited to Nairobi; you can actually take this idea and replicate it in other African cities such as Kigali (Rwanda) or Juba (South Sudan), where the market is still developing and competition is minimal.
Do you think this sounds like something you'd be interested in trying? If you answered yes, then carefully read through the following steps.
Step One: Gain an Understanding of the Nature of the Business It makes no sense to start a business in which you have no prior knowledge.
As a result, it is critical to understand what briquettes are, what they look like, and why they are required by the marketplace. To put it another way, briquettes are blocks of combustible biomass such as charcoal making machine supplier dust, sawdust, rice husks, or paper that are used for cooking in a jiko (traditional Japanese cooking vessel).
The primary advantage of briquettes is that they do not emit smoke and are significantly less expensive than other forms of energy. For example, if you spend Ksh2,000 per month on charcoal, you can spend approximately Ksh1,000 per month on briquettes and save an additional Ksh1,000. . . all while protecting our environment at the same time.
In a nutshell, this business is all about maximizing the value of waste materials that are abundant in our urban environments. And as a result, you are able to conserve the environment while also earning a respectable living from small amounts of capital.
Step Two: Obtain TrainingBriquettes: A Step-by-Step Guide
Find a trainer in your area and learn how to make briquettes from him or her. In most cases, non-profit organizations and briquette machine manufacturers provide training at no cost. Through our investigation, we were able to identify organizations that can train you and even provide you with a machine so that you can get started right away.
*Kiserian Briquettes Machine – Located in Kiserian, Kenya.
Nairobi-based Lean Solutions Limited, and Mombasa-based Kencoco Limited are among the companies that operate in Kenya.
*Practical Action NGO – With offices in Nairobi, Nakuru, Kajiado, Kisumu, and Mandera Turkana, among other locations.
In the Limuru area, you can find the *FRB Kenya (NGO) organization.
In addition, you can look for trainers in your area by searching Google or Facebook groups.
Step Three: Get the Process Started
You are now fully prepared to begin operating your own briquette manufacturing facility. One advantage is that you can begin on the veranda of your home, which will save you money on construction costs. It is important to note that you do not require a license to start this type of business, with the exception of if you are opening an outlet, in which case you will be required to pay for the county single business permit.
How Much Should I Invest in Option 1?
Begin with a manual machine that has a capacity of producing three sacks of briquettes per day to get the ball rolling.
The machine will cost you Ksh20,000.
Ksh5,000 for miscellaneous expenses.
KSH25,000 is the total budget.
The second option is to start with an electric machine that can produce 20 sacks of briquettes per day, which is the most common.
The machine will cost you Ksh150,000.
Ksh10,000 for miscellaneous expenses.
A total budget of Ksh150,000 has been set aside.
Producing one bag of briquettes costs approximately Ksh300 (about Ksh300).
As a result, depending on your financial strength and market position, you can choose the option that best suits you.
How Much Profit Can You Make?
On the market, a bag of briquettes can cost up to Ksh1,000 (about US$1) or more. Hotels, restaurants, and educational institutions, in particular, tend to purchase in bulk, resulting in greater profits for you. Your profit margin will be determined by the amount of product you can produce and sell.
Option 1: You can earn approximately Ksh2,000 per day or Ksh50,000 per month by operating a manual machine.
Option 2: You can earn approximately Ksh10,000 per day or Ksh250,000 per month by using an electric machine.
Lastly, a word about
You can do this by yourself or with a group of people called chamas. In fact, it makes no difference how small your initial investment is. In the end, it is your ability to nurture the business and market to the appropriate clientele that will determine your success. When we consider that the world is striving to reduce pollution and waste, as well as the fact that our tree cover is dwindling by the minute, the future looks bright for those who choose to engage in the briquette business.