Transportation Business Plan In Nigeria | Feasibility Study (2019 PDF/Doc)

Transport Business? Hot cake.  Nigeria has a population of over 180 million and all these people are always moving from place to place for various reasons. People are in need of transportation every single day,  some need to get to work, some need to run errands, some to visit friends, some to travel for a whole lot of reasons, some to transport goods,  the list goes on and on bottom line being that people make use of the different means of transportation which are transportation by land,  transportation by air and transportation by water every day for different purposes.  It will not be too far from the truth to consider transportation a necessity. Are you following our drift?  Do you see why we consider transportation business a hot cake? Of course you do and now you want to go into the transportation business. That is what we are here for,  this article will give helpful tips on how to get into the transportation business and how to be successful in it.

First things first – You have to acquire enough knowledge about the business you are getting into. Drafting a business plan is one way to go about it. You cannot dive blindly into a business and expect to succeed in it when your competition has experience and strategy on their part.  There is no detail that is too minute for you to know, leave no stone unturned.  You have to get yourself acquainted with the cost of fuel,  how much you will spend on maintenance of the vehicle(s) amongst other factors. Like they always say Knowledge is power.

Bear it in mind that transportation is quite vast so which one do you want to go into and do you the technical and practical know-how to go into it?  Are you financially capable to handle it? You should have this at the back of your mind from the onset.  Next,  carefully consider the area you want to practice your transportation business. This goes a long way in determining whether or not your business will thrive.  You can’t bring cars into an area where only bikes can ply and expect to make success so know the area you are going into in and out. Some people might be of the opinion that they do not have the capital to go into their choice of transportation business because they think the only way to start is to start big.  That is so not true,  you can start little and gradually grow and expand your business.  It is even advisable to start this way because it avails you the opportunity to learn from experience without having so much loss, because the mistakes will be easier to correct. Consider it as you being in training, this way you get to have practical knowledge of the business until you determine the method that best suits you and that works well for you.  However if you have the capital and technical know how to start big then by all means do. Just ensure that before that you are well grounded on  all you need to know about the transportation business and that all the systems you will need to put in place for your business to succeed has been handled.

When you have acquired all the necessities to start your business, it is then time to do all the required registrations, get all the necessary licenses and join all the required unions and associations an example of which is the National Union of Road Transport Workers, so that you will not get any disturbances or interruptions in the course of your business. Don’t just join them but pay all the required levies and dues, if not you’ll spend more in penalties and fines. Observe the rules and regulations as that will help you avoid stress and save you a lot of money in the long run. It is also important for you to register your business with the Corporate Affairs Commission (CAC), a lawyer can help you out with this.  When you are done with the registration you will be awarded a certificate with an RC number and that will show that your business is fully recognized.

Another important factor to consider is supervision.  If you are getting just one vehicle and you will be the one driving then there really is no need for this. However, if you are going to hire drivers then make sure there is a system in place to keep them in check. What is mostly obtainable is that drivers that are hired  to operate other people’s vehicles handle the vehicle very roughly because they feel that it is not their own, so they end up wrecking the vehicle in such a short space of time making the owners of the vehicle experience severe losses. Now this is not the only reason one has not hire reckless drivers, the safety of the passengers and other road users are also at stake. So be sure of your drivers before you hand over vehicles to them. Also create a system that will enable you to be aware of the state and condition of your vehicle as often as possible and to track the drivers so that you will not be taken advantage of and you will get all the profit you are supposed to make. Determine the method of remuneration for your drivers. You can go for either a fixed monthly salary, or a fixed weekly return from the driver. You have to put location, type and size of vehicle, the amount that other drivers make daily, and other necessary factors into consideration before arriving at a method.

Now that we have settled that, let us consider the various aspects of the transportation business that you can get into. You can decide to either be transporting people or transporting goods.  If you decide that you want to be transporting people then you can make your pick from any of the options listed below.

1. Commercial intra-city transport which involves buses or taxis.

2. Intercity transport service which involves car, buses or luxury buses, Commercial tricycles, motor cycles etc.

If on the other hand you decide to transport goods is also known as haulage then there is also a list of options for you to make your pick from.  Haulage is even more vast than the transportation of people.  You could transport goods,  materials, equipments and the like for oil companies, telecommunication companies, queries, sawmills etc.

A lot of Nigerians are now going into entrepreneurship and the reasons are not far fetched. The rate of unemployment in the country is on the increase. So if you have some fund at your disposal and you are wondering which profitable business venture to go into, you can think about transportation business.  As we’ve pointed out Nigeria has a population of over 180 million and all these people must move from place to place for various reasons. So choose an area and take cognizance of the helpful tips that we’ve pointed out in this article and you’ll be on your way to being a successful entrepreneur in no time. According to National Bureau Of statistics, the number of commercial vehicles registered in Nigeria as of December 2018 was about Six million seven hundred and ninety nine thousand five hundred and eighty six. 6,799,586 as against over 180 million people so you see the market is really a good one.  Why not join the band wagon.