Introduction To Transportation Business in Nigeria
In this era of entrepreneurship, everyone wants to be self-employed or have an extra source of cash. Starting transportation business in Nigeria is somehow tedious when you don’t have the capabilities to handle technical challenges involved in the business. To succeed in transportation business, continue reading to be fully guided.
Transport business is one of the hottest and trending businesses in Nigeria so far. There is money in the system. This is because in a country of over 180 million people, imagine the number of people using road transport each day, moving from one place to another, from Nigeria to other African countries. Additionally, record shows that over 80% of Nigerians make use of road transportation and this is because it’s easy and cheaper. Goods used all over the country is transported to different states mostly through the major means of transportation in Nigeria road transportation). Also, we should consider the number of intercity travels per day. When you look at all these, you understand why this business is a hotcake.
Before we will go into how to start this kind of business, there are some basic things you need to know about transport business in Nigeria. Great achievers in this type of business gave in their time and effort to make it work. You will have to create more time enough to supervise and oversee the business. It is a business where inappropriate supervision will surely lead to the collapse of the business.
You must have trusted managers who will supervise the business for you on a daily basis in your absence. You must be well informed about the daily cost of running a transport business. For example, such daily expenses as the amount of fuel needed per day or weekly maintenance of your vehicle(s), etc. Above all, make sure you know the loopholes in the business (things that will make you run at a loss) and avoid them.
For road transportation, it is majorly divided into two types; they are human transportation and transportation of goods.
The human transportation is also divided into the following;
- Commercial intra-city transport (buses or taxis)
- Commercial tricycles
- Commercial motorcycle
- Intercity transport service (car, buses or luxury buses)
Commercial motorcycle Commercial transport of goods is also known as haulage. You haulage for big companies such as oil companies, telecommunication companies, manufacturing companies, building companies etc. Also, you can own tippers and transport goods from quarries, logging site or sawmills.
How to start Transportation business in Nigeria
The primary thing to consider when starting a transportation business in Nigeria is a solid and concrete business plan of transport business. Now, how do you come up with your business plan? Remember that no one does a business without understanding the business objectives, why you need to operate the business and how to reach a good number of people to patronize your business.
You should be able to also understand the size of the market you are reaching out to. . You need to study your environment including transportation in and out of your region. Estimated profit either per week, per day or per month has to be put in the business plan. How many vehicles you will have to purchase to kick start the business is another essential factor. Getting trust worthy personnel and staff matters a lot. When you have literally provided the answers and solutions to these head cracking questions, then be rest assured that you are ready to start your transportation business in Nigeria.
Remember, the hard work you put into planning will determine your success in this business. If you rush into it without proper planning, you will have a high risk of failing or running at a loss from the start.
Basically, a good entrepreneur should know that every business with the intention of succeeding has to endure some ups and downs and will take time and patient and transport business is not an exception. Don’t try to start with many vehicles at a time. If you don’t have the money to buy a brand new vehicle, you can buy a second-hand one. Starting small will help you to minimize your risk while you are still trying to master the business and also gain experience. If you start big, you may lose a lot of money and as result get discouraged. When you start with small, you gain experience quickly and become smart in the business. So, remember this, do not be eager to make a big start, just start mall, and work towards something bigger so you can build a big business in a short period of time. After getting your vehicle, make sure you get all the necessary documents and license for transportation. You should also remember to register your business with appropriate bodies to avoid problems. For example, you must be registered with the regional branch of the National Union of Road Transport Workers if you are into commercial transport. And you must always pay your dues or levies.
How profitable is transportation business in Nigeria?
That is normally the first question that runs in the mind of anybody who wants to run transportation business. The reason why you see Nigerians venturing into transport business today is because it is lucrative, though it has big risks to battle with but the result is always worth it. Millions of Nigerians travel on a daily basis like we earlier stated and this is why the business is lucrative.
According to statistics released by FRSC, the number of vehicles registered in Nigeria as of 2015 is about five million. When you compare this number to a population of 180 million, then you will see that there is a large market for transportation services in Nigeria. So, a lot of people use road transport every day, especially in such busy cities as Abuja, Port Harcourt, Lagos, etc. The most important thing is to be patient and vigilant. Note, every business has its risk. You just must be able to take a chance, keep things balanced, and minimize the risks. Remember, no guts, no glory! We wish you all the best.
Conclusively, if after reading through this post and still find it difficult to succeed in transportation business in Nigeria, then you should know that you’ve not done it well. Read this post, do what’s in the post until you succeed in it.
