Haulage business in Nigeria is a promising type of endeavour which can provide you with great profit. Why not give it a try? Read and find out how to start.
Nowadays, haulage is in high demand, so the number of firms offering the services in this area is growing every day. If you want to get involved in this business, you need to try to organize your work in such a way that it can bring you income. We will try to help you by providing you with all necessary information.
How to start a haulage business?
To tell the truth, taking into account and comparing all business ideas in Nigeria, this is quite a troublesome and expensive business. In order to start, you have to acquire a certain number of vehicles.
What does the job entail?
• At the first stage, you sign a contract with the client.
• The next step is package the goods and products for transportation.
• Transportation of the goods itself.
Timely delivery plays a big role in this matter: if you break delivery time at least once, the reputation of your enterprise will be ruined, and then you will have to rebuild the good name of your company.
So, the purpose of the article is to find out how to start a haulage company, so that your business can bring real benefits.
Relevance of haulage business in Nigeria
The urgency of cargo transportation in the modern world can’t be overestimated. Transportation services are in high demand and this increases every year.
Until recently, customers had to wait for their goods for several weeks, or even months. Now the situation has changed radically. People began to appreciate their time more. Therefore, regardless of delivery purpose, the relevance of transportation is growing at a rapid pace.
Basic goals
• Competent organization of transportation by trucks of various kinds;
• Delivery of commercial cargoes and transportation of large-sized cargoes.
The most important thing is to have persistence and strive to realize your business ideas in Nigeria and achieve the goals which you have set.
Where and how to set up your business?
• Select a room for office
You can’t do without having office space. The room can be rented. Approach the choice of its location very responsibly. If you chose to save money by working at home, you will not achieve good results.
• Staff recruitment
– It is necessary that staff should include dispatchers – at least 2 people. Their main qualities should include good diction, excellent memory, communication skills, and the ability to think logically. Dispatchers must have computers or laptops at their disposal. The presence of a printer and a scanner is a prerequisite. Without fixed phone, the work will not be carried out at a proper level.
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– A good manager will help to organize enterprise work correctly.
– A competent accountant will keep all the company’s documentation.
– High-quality drivers will save your money and help you succeed. The number of drivers depends on the route and number
IMPORTANT – An obligatory condition for successful work is effective advertising.
To ensure that the quality of services is at a high level, you must adhere to the following rules:
1. Develop clear route;
2. Calculate expenses;
3. Prepare necessary documentation;
4. Carry out continuous monitoring of goods movement along the entire route.
Purchase of trucks
Business in this area begins with the purchase of trucks, trails or tankers. While choosing trails, it is necessary to understand your set goals clearly and which resources you have. It’s up to you to decide what to buy. Pay attention to maneuverability, economic-conscious fuel spending, and inexpensive maintenance. Choose the trucks in accordance with types of goods which you will need to carry and their amount.
Haulage and logistics
Tankers – possible capacity reaches from 5,000 – 20,000 liters (suitable mainly for diesel and kerosene transportation) to 30,000 – 46,000 (in such tankers you can carry any types of petroleum goods) liters.
Trucks’ (from 20ft to 40ft) price mainly varies from N3 million to N12 million. Everything depends on the size and how old your truck is.
If you plan to start a business with the purchase of 40ft trails, then you will have the following expenses:
– Expenses for the purchase of vehicles;
– Repair of machinery and fuel costs;
– Renting premises;
– Wages to employees;
– Advertising.
Let’s conduct small calculations:
Within Lagos:
– Customer’s fee for a trip – N15,000 – 16,000;
– Its real cost – N6,500;
– Profit – N9,500.
An average number of trips per day – 2, so throughout a day you can earn nearly N19,000. If you work 6 days a week, you can earn about N456,000 per month.
Within southwestern zone
If you travel to this region, you should know that such services will be much more expensive. Your profit in Lagos + additional 50% = the sum of your income within the Southwestern zone.
So, the final monthly sum is N 684,000, annual profit – N8,208,000. You will need to pay for maintenance which comes to nearly N2.5 million a year. Clear profit – N5,745,600. The income is enormous. Extremely!
Sounds attractive, don’t you think so? Don’t waste time, give this a try.
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