De Gem's Diary
Son of Crowdholding, first of all. Crypto enthusiast, idea lover also in search of ideas and how to implement them.
Hello Crowdholders, I present to you the first chapter of De Gem's diary, a series of various projects that search for ideas, presents ideas, discusses ideas and seeks various ways of implementing them by harnessing the contributing power of all Crowdholders. I'm De Gem, by the way, the son of Crowdholding.
The first chapter of my diary is what I call the Charcoal Business. Let me give you a background of what it entails. Most people, especially low-income earners use charcoal instead of LPG in cooking. However, the price of a bag of charcoal differs from one region to another (there are 14 regions in my country). It is cheapest in villages far from urban centres and most expensive in major urban centres and gold mining towns. The idea is to buy in bulk at a cheaper price from a village far off from the city where I reside (Accra) and sell it at the standard price in another city. Get it?
Now onto the monetary aspect, a bag/sack of charcoal from the village I made enquiries from costs $3.5 (GH¢19 in my local currency but for simplicity sake, I'm going to stick to the dollar). The charcoal vendors start selling from 150 bags and upwards. I'm doing 150 bags for a start so this means I need $525 for the bags. Transportation is the greatest cost as drivers charge around $2 per bag. This sets my transportation cost to $300. Packing of the sacks is done manually and labourers charge $0.2 per bag. Doing this for all the bags means $20 will be spent on this. Because you need labourers for packing and unpacking, the figure becomes $40. Overall, the total amount needed is $865 (525+300+40). In one of the gold mining towns where I stayed previously (Tarkwa), a sack of charcoal sells for $8.3. If I'm able to sell all the bags over there (which I can do easily), I'd make $1245. This gives me a net profit of $380. Subsequently, I can go for a higher number of bags and earn more.
What is the problem then? I have been able to give the charcoal makers $200 as a form of deposit to start making the charcoal. I, therefore, need another $665 to complete this. The charcoal will be ready by 20th October.