Introduction
Being in the right place at the right time is as important as knowing the right products or services to offer in an economy like Nigeria’s . The country is a developing country and with so much going on, people starting to get their businesses online, customers getting more comfortable to make purchases online and the need to make deliveries from one state to another on the rise, it is no secret that the “Courier business” or “Dispatch delivery Business” is a very lucrative one to venture into since it is known as one of Nigeria’s most profitable business. Records show that there are about 40% of the population of internet users in Nigeria making orders online. If you are looking to get into the dispatch delivery business, now is a perfect time to do so.
How to start a successful Dispatch delivery Business in Nigeria
This article gives an Insight on what starting a Delivery Business in Nigeria would look like and all you need to know to get started and be successful in it.
What a Dispatch delivery Business is all about
Dispatch-delivery is the logistics process that begins with dispatch and ends with delivery. During the dispatch phase, orders are processed and assigned to be delivered based on route plans.
The delivery phase is when the package is delivered to the customer safely and proof of delivery has been signed.
In Nigeria, one of the most important things for a delivery company to have is a strong distribution network. Which is why most dispatch delivery companies tend to go for the bike delivery system which is by far the fastest means to get the job done.
Venturing into a dispatch delivery business is a good idea because there is enough profit to want to make anyone interested in it. As at 2018,the Nigeria logistics market was #280,000,000,000 and it is expected to be higher by 2023. However, there’s a need to be well grounded in the knowledge of the business in order to deliver the best service to customers.
Identify whom you want to serve(Target Audience)
The first step to any successful business is to identify your target audience. Who are they? What do they want? Why do they need your service? These are all questions that you should ask yourself before launching a business. Once you’ve identified the people who will use your services, figuring out how it should be delivered is the next step.
"Give thanks to the Lord for He is good: His love endures forever."
In order to run a successful dispatch delivery company in Nigeria, you must carefully consider the needs of each individual client and their unique circumstances. Some clients may require more flexibility than others, which means that your business model must accommodate this fact.
The next step is to determine what kind of vehicle you will use for delivery – whether it would be a van or truck or even motorcycle! This helps define how quickly customers can expect their orders to arrive at their location and ultimately determines how to move forward.
Have A Business Plan
Having a business plan is very important in running a delivery Business or any other type of business in Nigeria. This is like a blueprint for starting and running a company. It helps you figure out what kind of business model you want to run, how much capital is needed, your goals for your dispatch business , the market size and potential customers, how much money you need to make and how much time it will take to get there. It pretty much sums up everything on how you Intend to run your business and gives you a Sense of direction.
Get the Necessary Resources and Funding
This is an equally important step as the first two,getting the necessary resources and funding is the major step in kick-starting your dispatch delivery business in Nigeria as it sets the pace to get started. A few necessary resources that has to be put in place for a dispatch delivery company to function properly are:
- Capital: This is by far the most important aspect of starting a dispatch delivery business in Nigeria, capital is needed to get things running. On an average, the amount of money needed to start a delivery business in Nigeria is about a million naira (1,000,000). Securing adequate funds is important in order to put things in place and run a successful dispatch delivery business.
- Get An Office Space: The logistics business is an offline business as much as it is an online one. Although most transactions are done online, getting an office space would portray your business to customers as credible and professional. The office space should be enough to accommodate vehicles and every other thing belonging to the logistics company.
- Get Your Vehicles ready: What’s a dispatch delivery company without vehicles? A vehicle is one of the most important parts of a dispatch delivery business. Your vehicle is your business’s mode of operation. Branding your company’s vehicle is also a good form of advertisement.
- A Business Registration : Asides from the other benefits that come with registering your business with the corporate affairs commission (CAC) , your business would be termed as illegal if it doesn’t pass through the proper registration process before operation. A few other approvals your dispatch delivery business would need to have before it can operate legally are
- Approval from the state government : This can come in two forms, the interstate and the intrastate approval. This can be done in any local government office where your business is located.
- Approval from the vehicle inspection officer (VIO): Inspection of all vehicles that would be used for deliveries by the vehicle inspector officer is very important. This is to ensure that the vehicles that would be used for delivery are safe and in good condition before they can be put on the road.
- Courier license from NIPOST : The regulatory body for courier service in Nigeria NIPOST would have to issue a courier licence before operations can take place.
- Employees: If you want your dispatch delivery business to function properly, you’d need to hire competent staff. The major staff that any delivery company needs are Drivers. Whether it’s a bike driver or a van driver, they are important parts of a delivery company. Making sure to hire qualified and competent staff would really help to build good customer relationships and provide better services.
- Register with an insurance company: This is simply a way to guard against loss,in case of accidents and unforeseen circumstances. Registering with an Insurance company would make it easy for a business that has suffered a loss to bounce back in no time. Especially a business like a dispatch delivery business that has assets working for them.
- Get your Websites and Social media platforms running: Since Your business would be Digital as much as physical, having a website or a social media channel would make it very easy for customers to communicate when needed. This is in fact an important aspect of marketing your dispatch delivery business since communications would have to be maintained between the business and the target audience.
NB: A few other important things that a dispatch delivery business would need to run smoothly are mobile phone, a system to register deliveriee e.t.c.
Market your Business: What determines the survival of your delivery business is marketing, reaching the right people for your business and selling your service to them. Your business cannot survive without customers to pay for whatever service is being offered. A few ways to Marketing your dispatch delivery business is:
- Social media marketing : Social media marketing is an important way to Marketing a dispatch delivery business given the fact that it is an online business as much as an offline business. It not only helps to build a loyal audience of customers, it also helps in creating visibility for the business. This visibility can be created by employing the right strategies, running social media advertisements like Facebook ad, Google ad e.t.c.
- Word of mouth : The most powerful marketing method is word of mouth. It builds more trust in prospects than most forms of marketing. With the increasing skepticism among delivery companies to deliver well, a dispatch delivery company that has good relationships with customers would be able to leverage well on this.
- Referrals : Referral is also an effective marketing strategy, almost like word of mouth although telling others about the business comes with a price unlike word of mouth.
- Networking : going out and partnering with other businesses that needs the dispatch delivery service is one way to market your business and put yourself out there.
Pro Tip : If you want to stand out among your competitors,then find something they aren’t doing right and do it right. Customer satisfaction should also be taken with utmost importance because they are the backbone of every successful business.
Conclusion
Running a Dispatch delivery Business is a very lucrative business but one that needs proper structure and planning In order to avoid running into a loss. You should be prepared for ups and downs but with the right strategy and business plan, you would be sure to succeed.
