HOW TO START LUBRICANT OIL BUSINESS, ITS TYPES AND HOW TO EARN PROFITS
The machines are a big part of our life. From fans to big automobiles, are contain machinery and after a good run, they need maintenance and oiling to get back to their agile functioning. The Lubricating oils are responsible for not letting these machines wear out with age. These are classes of oil that reduce the friction, heat and wears between the mechanical components in machinery. There are two types of lubricating oils: Mineral Lubricating Oil and Synthetic oils. The mineral oils are refined from the crude oil that is naturally occurring. While the name suggests for itself, the synthetic oils are manufactured. The mineral oils are most popular nowadays as the cost of extracting oil from crude oil is lesser than making oil in labs and requires lesser resources. It can also be manufactured to have different viscosities depending on the usage there are in more in demand than the synthetic oils.
Different lubricating oils having different viscosities are blended together to prepare them for a variety of purposes.
The lubricating oils are most popular in the automobile industry and various other factory lines where big pieces of machinery are used and need proper care and attention.
Although it seems like the future of lubricating oils is not very long as the resources that are used such as crude oil or petroleum are present in very limited quantity and will exhaust soon. There are several efforts being made to extract clean oil from the used oil but extensive cleaning procedure to make it sustainable. But it is sure that till the time we do not find any alternative to these resources and the big machinery, this business is more of a need for the automobile and factories with heavy machinery than just an option. According to a report the lubricating oil business is likely to grow by 44% by 2035 which is why it is attracting a lot of people to invest in it as the profit margin is huge in this business.
Create a Plan
Decide beforehand what kind of Lubricant business you want to open. Is it just a retail shop or you’ll have in-house manufacturing of lubricant? If you are manufacturing, you need to understand it is not an easy task and requires a good understanding of the skill and creativity behind it. You will have to hire professionals and the scale of your business will be bigger. With that decide what will be your reach. If you want an offline store or an online store? If it is an offline store how big of a space you are expecting to have and will also hand out deliveries. And if it is an online store, what storage area you are going to keep your goods in, and what will be your area of service.
Make a plan for what is going to be the size of your business at first. The growth will only follow if you thrive in the market and the lubricant business needs investment and time. One should always be ready for bad days and thus also take care of the amount that is produced daily.
Do your research
The lubricant business is not an easy venture to open. You have to do a lot of research about how the market functions and what is the demand and supply chain in this business. The lubricant business requires maintenance even when they are at your warehouse so know the science of how to manage them wisely so that none of your product is wasted. If you are manufacturing lubricant be aware of the kinds of material that you are going to use to make your product. Take care of all the safety measures and rules and regulations which are set up by the government.
Take Permits and License
To start any business in India, you need to have legal permission sorted beforehand to avoid any hassles with government officials. You’ll need to get yourself registered as a business person, get your GST registration, and all sorts of licenses and permits are done. Make sure you are ready with all the paperwork and to take multiple rounds of government offices because opening any business in India calls for this.
Have the right distributor
Make sure you have a distributor who can easily make you available with the supply whenever you demand them and have access to the latest variety of lubricants that are available in the market.
If you are manufacturing your product, have a distributor who can supply you with the raw material of good quality and variety.
To have a successful lubricant business, you should know that customers should not go empty-handed so go for diversity and the best quality in your products.
Build the manpower
To open a business where you are manufacturing your product, you must have a skilled taskforce behind you working hard with you at all times. Do not negate the skill that is required for managing the lubricant business. You’ll need people to produce it, loading-unloading, shipping, etc.
Build a team you can trust!
Be vary of Competition and choose the right Location
The location of your lubricant business matters a lot. Try to keep your shop away from a place where there are already several stores available. Open a store in a densely populated area with different mechanical stores and repair works that are available so you always have people buying from you. Buy or rent a space that is big enough where you can store your items carefully and systematically.
Opening a store in a small town where there are already many manufacturers or lubricant distributors makes no sense. So, look for a place where you can stand out and be highlighted. You can also opt to have your lubricant business set up near roads where people can locate you easily.
Setting up any business requires a strong local connection and communication so that the business can propagate but with the rise in the use of e-commerce, things have become a lot easier. Make a website for your lubricant business and set delivery boundaries according to yourself. Arrange your products in different categories and use various models and tools which are available online to make your website catchier and more attractive.
Focus on Marketing
Make use of social media as it is almost certain that at least one person in your locality must be using any social media platform. Putting up pages on Facebook and Instagram and asking youth in youth in the locality to share it amongst friends, developing a strong SEO, and investing in marketing offline can bring great audience attraction to your new lubricant business. Putting up ads with discounts and amazing offers are always a plus. Along with online, spending on offline methods to propagate business is necessary. Go old school and hand our pamphlet whenever a customer arrives. Since you have an offline store and most customers will save your number for future reference, you can invest in WhatsApp Business and use its marketing tools to propagate your business. It is convenient to use and digitally provides a personal touch as the medium is one-to-one messaging which has become one of the best provisions of converting prospects to customers. Remember to greet them nicely and make them feel important.
Starting a lubricant business takes a good amount of planning. If you want your new business to succeed, understand the risks that come with entrepreneurship. It often takes a few years to get a business off the ground even with the best-laid business plan and advanced marketing. To open any business, one should be ready to work hard and show a lot of perseverance and determination. Any business will have good and bad days but it depends on the owner how they want to go about it. All the best!