Starting a business takes courage and ability to take risks. The fact that you are reading this article means or indicates that you are thinking about how to start an oil brokerage company. That is a good idea and I am here to help you make it a reality.
Oil and gas is a good industry, but there are also risks involved when you are trading commodities.
It is important that you are starting this journey of tapping into the opportunities in the oil and gas industry. You should know that it is possible to venture into the oil brokerage business.
Starting an oil brokerage firm is very lucrative. It is going to provide you with an opportunity to generate high and fast revenues.
If you ask me, this is can form the foundation of building your oil and gas empire.
The basic idea behind an oil brokerage company is that you are going to be the middleman between buyers and sellers of crude oil. You could be doing this on behalf of one or more independent oil or gas marketing firms or traders.
How to Start an Oil Brokerage Company
If you are keen to start an oil brokerage company, you should be do the following;
- Make a decision to start.
- Create a plan.
- Execute and start the company.
These are the basic steps that you need. In the sections below, I will share with you more details on how to start an oil brokerage company or business.
Step by Step Guide to Start Oil Brokerage Business
To start a business, you should know and having a clear step-by-step process on turning your idea into a reality.
These are the steps you should follow to start an oil brokerage business today;
- Conduct market research.
- Ensure you create a business plan.
- Build or pick your business structure.
- Find capital for your business.
- Choose your business location.
- Think and pick your business name.
- Register your business officially.
- Get licenses and permits.
- Open a bank account.
Following these steps will give you a chance to build an oil brokerage business.
9 Steps to Start an Oil Brokerage Company
As they say, you do not have to see the entire staircase, you just need to start.
This is what you need to do right now. You should take the first step towards starting an oil and gas brokerage firm.
Conduct market research.
This is the most important step. You should spend time to conduct market research. Learn and understand how crude oil trading works.
It is also important to identify you target customers. You should also research on available oil and gas products to deal in.
Ensure you create a business plan.
Once you have conducted your research, you should create a plan. This is a guide on how you will run your new oil brokerage company.
A business plan will act as your reference point on key things that will help you to succeed.
Build or pick your business structure.
You should ensure that you create the right business structure. This will be determined by the capital structure that you will choose, among other things.
Find capital for your business.
Another important step on how to start an oil brokerage company is related to finances.
You should find ways to fund your start up. This could be from your personal saving, bank loan or from selling shares to other people.
Having the right sources of financing for your business is very important.
Choose your business location.
The location of your oil brokerage business is a decision that needs to be strategic. This will help you manage your expenses while also being able to serve your clients.
You could decide to locate your business in the oil and gas capitals of the world. It is also possible to locate your oil brokerage company in the financial capitals where you can access funding easily.
However, in today’s world where technology is huge, you can also locate it at any place. You can work from home when trading in oil or gas assets.
Think and pick your business name.
This is an easy one. You should find a name for your business.
While it is easy, you should be strategic if you want to build a brand.
I would advise that you don’t waste too much on this.
Register your business officially.
In most countries, starting a business means you will need to formally register it with government agencies.
It is also important to ensure that you choose the right form of business. This is because each has benefits and disadvantages.
You could create a partnership, a limited liability company or start a public oil brokerage company. Take time to decide on the best one for your business.
Get licenses and permits.
When ti comes to operating your oil brokerage business, you might be required to secure certain licenses and permits.
Oil and gas brokerage requires you to have certain certificates to operate.
Open a bank account.
If you are starting a business, it is likely you will be receiving and paying out cash. To do this, you need a business bank account.
This means that you should open a bank account for your oil brokerage business.
I want to believe that when you were doing your research, you had also spent time looking for the best bank account for a start up business.
What You Need to Succeed as an Oil Broker
If you are like me, it is possible that you are keen to achieve your goals. This includes starting and growing your oil brokerage business.
This is what you need to succeed in your oil brokerage;
- Enjoy the oil business.
- Be a servant.
- Have Confidence.
- Create good habits.
- Learn marketing.
- Get a business mentor.
This means you are interested in being an oil broker, or playing the role of an intermediary in the oil and gas trading business.
7 Things You Need to Succeed as an Oil Broker Today
Crude oil brokerage and trading is not easy. To succeed as an oil broker, you should ensure you have the following seven things;
Enjoy the oil business.
It would a great advantage if you can be positive about the oil and gas industry. It will make your work easier if love being an oil broker.
When you do something that you love and enjoy, you will be able to go through the difficult seasons. To be honest, you will have those bad days.
Having a positive attitude will help you a lot.
Be a servant.
Being an oil broker is about providing services to the buyers and sellers of crude oil.
In this regard, you should focus on being a servant. Ensure you are aspiring to provide the best service to your customers at all times.
Starting and running an oil brokerage business requires confidence. You should not doubt yourself or your abilities to make it.
You will need to develop the confidence to engage with buys and seller of crude oil. This will involve creating opportunities for deals to take place.
Self confidence and also confidence in your company’s products or services is needed to succeed as an oil broker today.
Becoming a great and professional oil broker will require you to train. You should acquire the skills and technical knowledge of how oil brokerage works.
This will ensure you that you can execute your mandate well and with highest standards of professionalism.
It is also critical to build your strategic capacity to do oil business. This requires that you constantly train yourself as well as your team.
Create good habits
As you start your oil brokerage company, you will need to develop discipline as a habit.
You should create the right habits to ensure you close deals.
This means you should cultivate rituals, work environment and adopt habits that will help you become a productive oil broker.
Other habits include ensuring you meet customer deadlines and keeping them updated on the progress of the transaction.
- Learn Marketing
One of the key skills when it comes to oil brokerage is marketing. You should invest in learning marketing.
Bring the buyers and sellers of crude oil together will require some convincing. This is where your marketing skills come in.
If you can be able to look for buyers that are interested in crude oil, you are going to make a living. You will be grateful that you started an oil brokerage company.
A well-qualified broker needs all the necessary skills combined with solid marketing strategy.
Get a Business Mentor
One of the toughest things about being an entrepreneur is the fact that you will be lonely.
Starting an oil brokerage company is not easy. Not many people have done it.
This means you do not have someone to give you direction or to tell you whether things are working or not.
It is for this reason you should seek a mentor. Find someone who has started and who has build a business for guidance.
You can also create a community of other oil brokers. This will help you to share ideas and learn from other oil brokers as well.
How do I become an oil broker?
To become an oil broker, you should prepare by undertaking research, training and getting certified.
You should pass exams that will help you become an oil or a commodities broker.
This mean you should find a company registered with the Financial Industry Regulatory Authority (FINRA) willing to sponsor your application.
While you may later choose to strike out on your own, all U.S.-based oil brokers must begin work with a company.
How much do oil brokers make?
The salaries of oil brokers in the US range from $19,391 to $521,331, with a median salary of $93,710.
The middle 57% of oil brokers makes between $93,710 and $235,771, with the top 86% making $521,331.
Who is a fuel broker?
If you are wondering about this, you should know that a fuel or oil broker is a paid intermediary who plans and arranges oil trading transactions.
A fuel broker helps in creating a deal involving the buying and selling of crude oil.
You can also consider a fuel broker as a person who assists clients in procuring electric and natural gas from energy suppliers.
Which broker is best for crude oil trading?
Crude oil trading requires intermediaries to help buys and sellers of crude oil.
Some of the best brokers in crude oil trading include;
- Interactive Broker
- Ninja Traders
- Discount Trading
- MetaTrade 4
You should find the crude oil broker that meets your needs. It is possible to use online trading platforms today, which are provided by some of the commodity traders.
In conclusion, starting an oil brokerage company is work. However, you can be able to do it and succeed by following the above steps.
As you build you oil business, you will need to ensure you build trust with you customers. People will know you are a legit person, and that your business is legitimate.
Becoming an oil broker is going to provide you with a chance to create value, and earn money while at it.
As an entrepreneur, you will need to ensure you have a plan on how your oil brokerage business will grow. Provide the best value to your customers.
Starting an oil and gas brokerage company is one way in which you can get into the oil and gas value chain. You will be able to make money and create wealth as an investor.
You should aspire to build your business to become one of the best crude oil trading broker in your market.