This article will be providing you with an oil and gas business plan guide or template.
The energy sector of every economy is huge and offers enormous investment opportunities. Whatever your niche area or interests are, starting a business can be very challenging.
However, having a plan makes the process a lot less difficult and helps with better coordination.
Here, we aim to help entrepreneurs who, though being experienced in the oil and gas sector have no idea how to launch their business operations.
OIL AND GAS BUSINESS PLAN SAMPLE
To better organize your plan, there are basic sections that cannot be left out. They touch on the different aspects of running a successful oil and gas business.
They include the executive summary, the company description, and the products & services sections.
Other crucial sections include the market analysis section, strategy & implementation, organization & management team as well as the financial plan & projections sections.
So, how do you develop each of these sections? You’ll want to read on to find out.
i. Executive Summary
As the introductory section of your plan, the executive summary gives a concise overview of your oil and gas business plan. What you should seek to do with this section is make and keep your audience interested by learning about your business.
The basics about your company should be known here.
The executive section always appears first in a plan. While this is true, it should be written last. The reason is this; it should capture all the key aspects of the business plan.
Consider adding certain sections like your business name & location, your services & products as well as your mission & vision statements. Also, the specific purpose of your plan should be added.
Business Name & Location
One of the first things you’ll need to include in your business name as well as its location. Introducing your business is paramount and gives your reader or a starting point on what the business is about.
How does your location positively impact your operations?
Services & Products
Here, you’ll need to give a breakdown of your oil and gas products and services. What specific niche area you involved with and how are your products and services beneficial to your clients.
People only pay for value and you should briefly discuss what value your services offer to your clients.
Mission & Vision Statements
The mission and vision statements of your oil and gas business should shed light on your company’s purposes, goals and values. Your mission statement should tell about why the business exists as well as the purpose it serves.
Also include information on what your business offers.
You should focus on what you seek to ultimately achieve with your oil and gas business for the mission statement. In a nutshell, the vision statement gives purpose to the existence of your business.
It’s important when writing this statement to never leave anything open to interpretation.
Every serious business has a purpose. What’s yours about? By clarifying your purpose or aims, your chances of achieving your goals are increased.
ii. Company Description
The company description section seeks to further reveal details about your oil and gas business. Basically, you want to explain who you are, your mode of operation as well as the goals you wish to achieve.
Details to be included are the legal structure of the company, as well as its brief history.
Being an oil & gas business, you’ll have to provide details on the needs or demands you intend to fill or meet.
The company description should give an overview of your services & products while also identifying your target market and your suppliers.
Also, include a summary of company growth backed by financial or market highlights.
Of course, this won’t be complete without a summary of your long and short-term goals including how you intend to make a profit.
iii. Products & Services
While this was covered in the executive summary section, only a summary of it was given.
This section takes a more detailed look at the products and services being offered by your oil & gas business with a focus on the benefits being derived by customers.
Here, you’ll also need to explain the market role of such products & services.
What edge or competitive advantages do your products & services have over those from competitors. Are there new products in the works? Provide information on such.
Here is a sample plan on crude oil refining.
iv. Market Analysis
A lot of work in the form of research is required to demonstrate your understanding of the oil and gas industry.
Your research should provide a detailed sketch of your target market with a focus on key aspects such as its size and demographics.
Have an industry description and outlook with statistics serving as proof. What more? There should be historical, current, and projected marketing data for your oil and gas business.
Also, include an evaluation of your competitors with a special focus on their weaknesses and strengths.
v. Strategy & Implementation
Strategy and implementation have a lot to do with sales and marketing. This is basically an operating plan on how you wish to sell and distribute your oil & gas products and services.
It focuses on market entry, pricing, costs, promotion, and distribution details.
What are your operational plans in regards to the operational cycle of the business? You also want to include information on labor sources as well as the number of employees you’ll need.
vi. Organization & Management Team
The organization & management team section discusses the organizational structure of the oil and gas business.
You want to provide a description of key departments as well as employees by providing an organizational chart.
There should be information about the owners, their level of involvement as well as percentage ownership. Also, profiles of your management team will be necessary.
vii. Financial Plan & Projections
Under the financial plan & projections section, you’ll need some expert help. The services of a professional accountant will suffice.
The key areas analyzed under this section include the historical financial data, realistic prospective financial information, and brief analysis of financial data.
With these points covered, your oil and gas business plan should be ready for implementation. You also stand the chance of getting the much-deserved financing required.