Transportation Business Plan In Nigeria – Transportation is the process of moving from point A to point B, in essence the movement of people and goods from one location to another. Transportation has over a long period of time being a source of income as it thrives in places where there are large number of people resident.
Recent studies has shown that transportation no longer has limit, before now, it use to be movement of small group on foot, then horses now we have automobiles. It now involves a whole lot of capital involvement and also planning, which is why you need our transportation business plan in Nigeria.
Transport business just like most businesses in Nigeria has always been Hot cake. When you look at countries like the United State Of America and Peoples Republic Of China, transportation has been viewed as a huge avenue of making profits, transportation has become big businesses in these countries, one thing these countries has in common is population. As earlier stated, population is one if not the major drive of transportation business.
Now, Nigeria with an estimated population of over 180 million, viewed as the most populous black nation in the world, Nigeria has the potentials of United State of America and People’s Republic of China in the transportation sector, going by the population and also the limited means of transportation in Nigeria.
How Lucrative Is Transportation Business In Nigeria?
The potentials in the transportation business in Nigeria is as huge as the haulage and trucking business as stated earlier, the population helps in this regard, to be able to set up an up to standard transport business outfit, you need to study our transportation business plan in Nigeria, the idea is to understand the various method of running this kind of business and then making profit at the end.
Millions of people are always on the move, moving from destination to another, going about their businesses or other various reasons. To ensure you benefit from this goldmine, providing a means of transporting these people since they need it on an every day basis could be a way of contributing.
One of the reason vehicle transportation will thrive in Nigeria is because there are limited option of transport. In as much as most of the roads are not motor-able, transportation via land has been made to be the major option, while travelling by air are mostly done by few.
The truth is that people want to get to their destination without hassle, as such, people move around on different reasons such as the following;
- Most people want to get to their work place on time
- There those who need transportation just to run errands
- Some wants to visit their friends
- Travel for a vacation
- Transport their goods to various destination etc
Types Of Transportation Business
There are a whole lot people could do via transportation, however, there are various means of transportation, they include the following;
- Transportation by land – This is the most popular type of transportation, it involves bikes as Okada, Gokada, cars as taxi, Uber, Taxify, township buses, inter state transportation, travelling to neighboring countries by road, apart from cars, there is transportation by train which is also on land, however, this is mostly controlled or operated by government agencies. This is assumed as the safest type of movement or transportation.
- Transportation by air – This type of transportation is used mainly for movement in between countries. Although there is inter state air transportation. Air transport businesses in Nigeria includes Air peace, Arik Air, Aero Contractors, Max Air, Dana Air. The advantage of this is that it is the fastest among all types of transportation today.
- Transportation by water – Not very popular for transporting humans, this type of transportation is mainly used to transport heavy cargo, 85% to 955 of goods are transported via the high seas. Even though cargo can be transported via the air, but transporting heavy duty machines, cars, farming equipment is safer transporting them through the sea.
Transport by air entails travelling or moving goods from one location to another through an aircraft, this means are used mainly in the transportation of people and luggage.
While transportation by water entails the movement of people via the high sea using speed boat, canoe, large ship, submarines, this type are common around riverine area in Nigeria, take for example, in places like Lagos, Port Harcourt, Warri in Delta state, Bayelsa, water transportation are somewhat common in these areas.
Then you have transportation by land, this is the most used means of transportation in Nigeria, in fact it has been argued that this means has been over used and that other method of transportation should as well be looked into, every day people transport for different purposes and different reasons. This is the reason we consider transportation business as a goldmine, this can actually be an option in terms of investments, here we offer suggestive tips on how to get started with your transportation business and then learn how to be successful in the business.
Things You Must Know Before Starting
Get Knowledge – This is not just any business you just dive into, you need to get the required knowledge on how this business works, how do you do this, you can either read up on how transportation business can work in Nigeria or you can go on a field research on transportation business, there is also an option of getting our transportation business plan in Nigeria e-book.
The thing is, you do not want to spend on a venture you know nothing about, hence the need to acquire the necessary knowledge about the business. The business plan you helps you in this regard, at least you need to match your competitors experience and strategy, hence every knowledge is not a waste.
Decide On The Type Of Transportation Business To Go Into – Know this! Transportation business is wide, even within a town, there are different kind of transports, you have the transportation by bus, transportation by Taxi, you have Tricycle (Keke) and then Motorbike (aka Okada). This is way you should be sure of the type you want. The reason for this is to avoid a situation where you will have abandon your equipment because of not knowing some existing laws. Take for example, in many major cities in Nigeria, Okada transportation are not allowed, it becomes a waste investing in it without knowing but getting to know when it is already too late. Also you need to understand the dynamics as well as how capital intensive the business venture is.
Name Registration – Every known transportation company has a registered name, it is also important to choose a name that is easy to remember, for example PEACE, God Is Good (GIG) etc, these names are popular because they are easy to memorize. After choosing a name, go ahead with the registration, your first place to register is at transportation union known as the National Union of Road Transport Workers, here every required license will be issued, also ensure to follow all the rules and regulations, after that, you can then register your business name at the Corporate Affairs Commission (CAC), you can solicit for the assistance of a lawyer, ensure you get your certificate with an RC number, an evidence your business is fully recognized.
Employments And Remuneration
This is another important factor to consider, employing capable hands who will help with the progress of the business, employing capable hands ensures the possible longevity and the success or failure of business. It is important to get someone who will supervise while you oversee things. This absolutely depends on how large your transport company is, a company of say one vehicle doesn’t require all this. Also employ drivers who are good and experienced. Also create a system that will enable you track your drivers, this is to avoid drivers taking advantage of the business. Remuneration, have a fixed salary which can either be weekly or monthly.
Transport Business In a Nutshell
Transport business clearly means the transport of goods or passengers from one destination to another destination as mostly seen at our motor park. The business of transporting can be divided into different categories, mostly in form of services rendered; (i) individual passenger transport, (ii) transport for companies expatriate, (iii) transport for trade partners.
5 Steps You Need To Launching Your Transport Company
I have decided to make a list of 5 simple item that you should consider to do before starting your transportation business in Nigeria. Note that this list is not the only thing you can do before staring you transport company;
- Specify on your Transport Niche – Transportation has different niches, as the business person before you start investing in your new transport company, you need to research on the niche that best suit your goal. This shout be your first step, if your plan is not to wallow in the wilderness of confusion. “What niche will I choose?” you may decide to narrow it down to transportation of goods or human, Okada riders or taxi driver, inter-state transport or transport within the state etc.. With this you get to stream down on where and what to invest on. It is important to do your own research.
- Design A Business Model – Now it is assumed you now know what you want for your business and you now know how you want the business to be. Now design your organisational structure outlining your new company’s operational information. From you business model one can tell if yours is a Sole proprietorship model, were manage your business as either an individual or married couple. Here the business is not incorporate. Other model includes General or limited liability partnership and Limited liability company (LLC).
- Licensing and Permits – When it comes to transportation service were you transport people and cargo, you need to have your government approvals in form of permits, sometimes the permits you need supersedes other companies. Here the company is getting licensed, your drivers are getting licensed with options for renewals. The reason why you need these license is to ensure passengers safety as well as cargos in your care.
- Financial Projection, Expectation and Budgeting – This is what determines the niche you get to invest in. if you do not have the resources, there is no need to invest, except you have a alternative source of fund. The niche you choose determines the level of investment. In most cases you may need a loan to be able to meet up with your projections and expectation from the business financially.
- Purchasing Of Your Fleet And Staff Hiring – Let’s you now have the finances to purchase your vehicles, you should have the type of cars you need to buy. These are the things you should look out for, (i) vehicle size (ii) the millage on the car if they are not new cars (iii) consider purchasing different vehicles for passengers and cargos, this simply means you can transport heavy cargos like refrigerators, machineries, heavy equipment etc while also having what to transport passengers without discomforting anyone. With purchasing your fleets comes with staff hiring, you need competent individuals to be able to run this new company effectively. Hiring the following for a start will be a big deal that will move you company forward, (i) Office and administrative staff, (ii) A team of maintenance technicians (iii) Sales and marketing professionals, (iv) Human resources, (v) Part-time or seasonal employees.
Finally bus transport business you need to exercise patience in other for the business to grow, most times, it takes more than just creating awareness in the media for the business to grow, your service quality can do all the tricks for you, when an individual is satisfied by your service, they will likely use your company again.
NOTE – This business plan also covers for feasibility study on road transportation business in Nigeria.
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