Are you into oil refining or wish to start a business in the oil and gas line? Click here for a sample crude oil refinery business plan.
It’s a great business idea that will require getting everything in place to launch a successful operation. One of the most fundamental requirements includes having a plan.
CRUDE OIL REFINERY BUSINESS PLAN SAMPLE
Your business plan is simply your blueprint to success.
However, a shabbily written plan won’t do much to help your business grow. This is why we’ve written this crude oil refinery Business Plan to serve as a guide.
Here, we’ve included all the basics with the strong hope that you’ll get the help you need.
It Begins with Identifying the Main Sections
Every business plan is structured in a certain way.
Here, we’re referring to the key sections contained within the plan. Basically, these sections include the executive summary, the company description, and the products & services sections.
Other key inclusions are the market analysis section, the strategy & implementation, the organization & management team as well as the financial plan & projection sections.
Detailed analysis and breakdown of each of these sections are needed to have a comprehensive plan.
i. Executive Summary
Consider the executive summary section as an introduction to the plan.
This is a compressed version that highlights the vital aspects of the plan. It’s written comprehensively and largely determines whether your business idea is viewed favorably by lenders or not.
Here, the aim is to keep your readers interested and making them want to learn more about your business idea.
Although the executive summary section appears first in order of arrangement, it’s actually written last. This helps capture all the key points to be included.
Business Name & Location
The business name and location are key details you can’t leave out or ignore. Your crude oil refining business must have a name. Where is it going to be located?
Location counts as it has to do with the supply of raw materials (in this case crude oil) as well as easy distribution of refined products.
Products and/or Services Offered
There’s also the products and services section. Whatever your scale of operation, crude oil refining is big business.
Apart from gasoline, a wide range of by-products is derived from crude. You’ll need to list your products while also stating any number of services offered.
Mission & Vision Statements
The mission and vision statements give an idea of where the business is headed and what it seeks to accomplish.
Your mission statement should briefly explain what your business offers, how it does this, and also who it helps. In a nutshell, it should encapsulate the value of your products and service.
The vision statement on the other hand is part of your strategic plan. It should clearly describe what you wish to achieve and also what you intend to offer your customers.
It should be inspiring enough to allow your workforce to key into it.
Purpose of the Plan
What’s the purpose of putting together a crude oil refining plant? Clearly stating its purpose gives more direction and enables you to clarify your goals. This enhances your likelihood of success.
ii. Company Description
The company description section is important to you as well as to your audience (lenders). It clearly highlights key aspects of your operations. It explains who you are, your goals as well as your operations.
This section should include information on the legal structure of your crude refining business.
Also, comprehensive information on the nature of the business as well as its brief history must be stated. What specific demands do you wish to satisfy?
Crude refining products serve the needs of a huge energy market.
Include an overview of services & products not leaving out your customers and suppliers. Ensure you include financial & market highlights as well. There should also be a summary of short and long-term business goals.
Clearly identify how you intend to make a profit.
iii. Products & Services
What products will your crude oil refining business offer? These must be clearly defined in addition to stating how they benefit the market or your customers.
Some visual representation such as the use of diagrams and pictures will make your presentation more understandable.
The market role of your products and services is crucial. You’ll need to state its advantages over competing products. What research and development activities are currently in place?
Will they lead to the development of more products?
iv. Market Analysis
This is where a great deal of work is needed. The market analysis section is written after thorough research of the refining industry.
It should include details such as a targeted customer segment sketch, an industry description, and outlook with statistical backing as well as historical, current, and projected marketing data.
It’s also important to include an evaluation of your competitors. Here, you’ll be more interested in identifying their strengths and weaknesses.
v. Strategy & Implementation
A summary of sales and marketing strategies as well as their implementation is what this section encapsulates.
You’ll need to explain you intend to promote your crude oil refining business to the market. Provide all details on product costs, pricing, promotion & distribution.
There needs to be a clear understanding of how your business will function. Here, the operational cycle, as well as information on labor sources and employees is necessary.
vi. Organization & Management Team
The organizational structure of your crude oil refining business needs to be discussed. This is better presented with an organizational chart that describes key departments and employees.
Details about the owners, their names, level of involvement as well as percentage ownership are necessary.
The profiles of your management team must also be stated. Key inclusions will cover skills and background, positions, names, and main responsibilities.
vii. Financial Plan & Projection
Your crude oil refining business plan won’t be complete without the financial plan & projections section. The input of a professional is vital here.
With the help of a professional accountant, have a detailed breakdown of your historical financial data, in addition to realistic prospective financial information.
A brief analysis of your financial data is also a necessary inclusion to your crude oil refining business plan.
With these sections comprehensively written, you have a solid plan that guarantees success.
You can also follow this framework to create a unique oil and gas business plan.