The petrochemical industry primarily deals in the chemical compounds which can be refined from petroleum as well as oil, natural gas, coal, plants, and other sources. These resources can then be used to make a wide variety of products and, as they are fossil fuels which are running out, are in high demand.
This means there is an opportunity for businesses to make a lot of money, but it can be a challenging and costly industry to succeed in, particularly for those with no prior petrochemicals experience. However, if you have been working in the petrochemical industry but are now looking to start your own business, this guide will outline some key considerations to keep in mind.
Decide on what kind of business you want to run
There are lots of types of companies in the oil and gas industries, so you will need to decide which path you will take. You could run a company that drills for resources, sell the products or parts for the industry, run a filling station, or work in cleaning oil spillages. You will need to ensure that you have the necessary skills and experience in your chosen business and that have the capital required.
Write your business plan
When you have decided on the type of business you want to run, your next step is to write a detailed plan of how you will conduct business. This plan should include all your upfront and operating costs, how you will make money, what insurance and permits you need and financial projections. This information will be essential when trying to secure funding from investors.
Secure your investors
Very few entrepreneurs are sitting on a pile of money ready to launch a business with and even fewer have the kind of capital needed for the petrochemicals industry. You will likely need investment from an angel investor, private equity or a bank loan. Find out more about funding options for business.
Find your team
The people you employ will be some of your most important assets, so start planning your staffing and recruitment as early as possible. Your employees need the required skills and knowledge (e.g. geologists, chemical engineers) as well as a professional demeanor and high level of motivation. Working in a start-up business of any kind requires resilience and loyalty, so think about their soft skills as well as their professional experience and education.
Get the best equipment and technology
You should be investing in the best equipment and technology that you can afford. This includes not only the tools you need to operate like as valves, pipes, pumps, and generators, but also health and safety and fire-fighting equipment. The higher the quality of your equipment, the more likely it is that you can outperform your competitors. It is also important to consider the computer technology and the field service software you will need to record, track and analyze your activities both in and out of the office.
Understand and comply with industry regulations
It is essential that you understand and comply with all regulations relating to your field and that you get the necessary permits, licenses and a tax identification number. If you are in any doubt about what is expected of you, you should seek professional advice from an attorney and/or accountant.