Biodiesel Production Business Plan Sample Template


Are you driven by a desire to begin the production of biodiesel fuel in commercial quantities leading to the establishment of a company?

Starting any meaningful venture requires a careful preparation process. A business requires adequate preparations to be made before it can succeed.

This article focuses on the biodiesel industry, providing information on how to start a company in this sector.

Starting a Bio-diesel Plant Company – Jatropha, Moringa, Castor Oil Processing

Biodiesel fuel is a fuel primary made from vegetable oils, especially waste or used vegetable oils. These are oils that may have been used at restaurants, households and hotels and several other places that may use vegetable oils. The used vegetable oils are collected and processed carefully to produce biodiesel which powers automobiles such as trucks and even an electricity generator.

The advantages of using biodiesel fuels are that it increases the efficiency of your engine, creating a higher performance. It also considerably increases lubrication, and is less dangerous to use due to its low carbon emission, making the environment safer.

Here is a sample business plan for starting a biodiesel company.

  • The Raw Material and Company Location

To start a biodiesel company, it first requires that the entrepreneur should first investigate the availability of raw materials. This is a very important consideration that should not be overlooked. A biodiesel company requires that there should be a constant supply of waste vegetable oils for the production of biodiesel.

Failure to pay close attention to the availability of the raw material, in this case, the waste vegetable oil might result in the biodiesel company experiencing production problems, leading to its closure. The location of the biodiesel company should be close to its source of raw material.

Such locations can be an area where there are hotels, event centres, a dense collection of households. Also, an area where there’s a large concentration of restaurants will be an ideal location for a biodiesel company. This will ensure that there is steady supply of used/waste vegetable oils for the production of biodiesel.

  • Abiding by the Government’s Regulatory and Policy Framework

This is a necessary requirement for starting a biodiesel company. The regulatory frameworks setup by the government requires that you agree to carry out your business in line with the safety measures it specifies. The United States Environmental Protection Agency is one body that regulates and sets the standards required for biodiesel fuel production.

During the production process, spills are inevitable, the regulatory process advices on the type of equipment to purchase to limit the occurrences of spillage. Also, discharge of unwanted products into the environment is covered in the regulatory process to ensure the safety of the environment. The entrepreneur should be ready accept these regulations and not avoid them.

  • Purchasing Standard Equipment

Opening a biodiesel company requires that you consider purchasing standard equipment for the production of biodiesel fuels. These standard equipment are usually built to handle commercial production, hence have the right calibration and meet requirements set by the regulatory body. The use of standard equipment contributes to the production of high-quality biodiesel fuel for the market.

  • Hiring the Right Staff

A biodiesel company requires that there should be a workforce specialized in the process of production. People with years of experience in this field should be given higher consideration as their years of experience will be an asset to the company.

Generally, the hiring of staff should be handled by a reputable human resource hiring company specialized in the provision of high quality staff for corporate organizations.

Hiring the right staff goes a long way in impacting an organization positively. His/her unique skill sets are used to the advantage of the company. At the end, the collective effort put in place by the entire workforce will greatly impact the profitability of the biodiesel company.

  • Setting Up an Efficient Quality Control Unit

This is an important requirement for a biodiesel company. A quality control unit usually makes sure that products are tested to meet up to standards before they are released for use to the public. The quality control department should be manned by personnel possessing the required knowledge and skills for optimal performance.

The quality of personnel found in the quality control unit to a large extent impact on the quality of products produced.

  • A Marketing Department

This is essential to the success of any business enterprise. Starting a biodiesel company requires that a marketing unit headed by marketing experts is put in place to adequately create awareness through various organized publicity activities.

  • Starting Small

A biodiesel company, although very profitable should be handled with the necessary caution it deserves. Starting out small is necessary to allow for easy identification and solution of challenges that may arise. The successful small business stands a high chance of succeeding during its expansion.

Starting out small in most cases is aimed at testing the market forces. When the result arrived at is desirable, further expansion can be undertaken. However, in the event that the results are undesirable, the required adjustments are put in place to remedy the problem.

The size of the biodiesel company usually depends upon the supply of waste/used vegetable oil. Whatever the case, testing your market is important. If the market is receptive to your products, then expansion is needed. But if not, the problem might lie with marketing you products which you have to address.