The transport business in Nigeria is a lucrative enterprise for people who understand the venture, knows the local terrain, and can implement a good system of operation.
Millions of Nigerians rely on public transportation to get them to their destinations, every day. As such, the transport business in Nigeria continues to grow, with higher revenues been generated every year.
The four different and common methods of running a transport business in Nigeria are vehicle hiring services, hire purchase, personal driving services and owning a transport line. Nevertheless, there are other unexploited transport business opportunities in Nigeria that are highly profitable.
Here is what you need to know
How To Start A Transport Business In Nigeria: The Step By Step Guide
1). Prepare A Business Plan:
Preparing a good business plan is the first step. It means that you have conducted a market research and weighed your options. A business plan tells your investors and prospective funders whether or not they can trust you with their money.
Additionally, your plan should include the business idea or opportunity you have decided to take on and establish.
Most transport businesses have the potential to be multi-million or billion-dollar businesses. However, not all transport companies start out with intensive capital funding.
The starting capital might be sufficient for an independent, medium, or a large transport business. Your initial scale of business depends on the finances you are able to gather and the experience you have.
Commercial bank loans, investors, and partnerships are options to consider while sourcing for capital.
3). Register Your business:
Pick out a unique business name, get all your documents ready, and register your transport business. Get every license you need from the Corporate Affairs Commission in Nigeria and other licensing bodies.
4). Join A Union:
It’s necessary to become a member of a transport union in Nigeria, like most other businesses. For medium to large-scale transport businesses, this is just a beneficial option.
5). Purchase And Equip Vehicles:
Buy the proper transport vehicles for your business services and set them up with the necessary equipment. The number of vehicles you buy depends on how you want to start up.
The type of vehicle purchased should suit the type of service you offer. For instance, a truck can serve as a moving van or livestock transport vehicle but never a taxi or shuttle.
6). Employ Qualified Personnel:
Drivers and workers you employ as the business expands should be skilled, level-headed and reliable. Many transport companies have failed because their employees lack such qualities.
In transporting people or goods, safety is paramount. When a transport business hires reckless drivers and has a poor customer relation service, progress is hindered.
7). Insure, Expand And Promote:
Insuring your transport business against possible risks is a significant step towards the prosperous outcome of your efforts.
Provide excellent services, and customers will flock in, generating the capital needed to buy more vehicles, hiring skilled drivers, and branching out in many more locations.
The right marketing strategy will expose your transport business and bring in more customers. So promote your growing business not only through word of mouth but by sponsoring and advertising on television, radio, and social media.