Haulage business was known as a millionaire venture years ago and today, most people will disagree. But a recent research which I conducted, with my team of fellow entrepreneurs here in Nigeria proved that haulage business is still a lucrative business anyone can start and make money. The bitter truth is that most business persons can’t cope with some variables in the industry and as thus, have left the business in the hands of the few.
Do you have a huge sum of money in the bank but don’t know what to do with it? Do you want an investment whereby you make six figures monthly without any form of management? Haulage business is the ideal business that you should consider investing in.
One major factor which has deterred many from this business is its capital intensiveness. Yes, you need a huge sum of money to start it up and when I say huge, I mean millions. Firstly, let me go ahead and give a quick definition of what a haulage business is. Not everyone knows that term.
WHAT IS A HAULAGE BUSINESS?
This is a business that deals with the transportation of goods from one place to another, usually by land. Examples of vehicles that can be used are tipper, truck, trailers, vans etc.
Before I venture into the business of the day which is to guide you on how to start your own haulage business, let me first highlight the major risks and challenges that are inevitable.
RISK AND CHALLENGES OF HAULAGE BUSINESS
1. HIGH COST OF FUEL
You’ll agree with me that Nigeria, despite being a major producer of crude oil sells locally to her citizens at a ridiculous rate. Sometimes, the price of pump might even fly higher without any tangible trigger. In this business, the price of fuel is a challenge and you need to be aware in order to know how to tackle it.
2. VEHICLE MAINTENANCE
The cost of maintenance is not child’s play. It can be depressing sometimes if care isn’t taken. That’s why I usually support the idea of leasing to a haulage company while you receive certain agreed amount monthly. Doing that gives you the chance to do other things and make money. At the end of the month, the haulage company pay. They also take it upon themselves to care for the maintenance and management thereby reducing headaches that arise in the cause of business.
3. BAD ROADS
This is also among the major challenges in haulage business. A lot of entrepreneurs have lost their fleet as a result of this. Having known this, with adequate preparation, you’ll be able to overcome or plan ahead.
4 BAD DRIVER
If you’re managing your fleet, then you’ll need to employ a driver. However, getting an honest driver is like looking for a pin in an ocean. It’s not impossible, but it’s hard. Their mismanagement has kicked a lot of business owners out of business. Sometimes, we hear stories of drivers running away with a fleet. Forget about GPS, you might never find it if such dare happen. It’s a risk as long as haulage business is concerned.
THE WAY OUT OF THESE SCARY MONSTERS
There are people, called either Haulage Agents or Fleet Managers. These are people who work under a registered Haulage Company and their work is to manage your fleet and pay you a certain amount monthly, based on agreement.
Why I love this is because, you don’t need to worry about maintenance, they have it all covered. All you do is smile to the bank monthly. I’m not going to recommend a haulage company here.. This isn’t an advert. You’ll need to make your research and find one you can trust around your locality.
OPPORTUNITIES IN HAULAGE BUSINESS
Why should you consider starting this business? Well, there are tons of reasons judging from services begging to be served. I’ve highlighted a few opportunities which has made haulage business a millionaire investment.
- Family relocation
- Transportation of new set of furniture
- Transportation of agricultural products
- Moving of building materials to building sites
- Moving imported goods from sea port to warehouses
- Transportation of petroleum products
- Transportation of livestock from the rearing communities to another location.
And so many other opportunities which I couldn’t mention here due to space.
BEFORE YOU START A HAULAGE BUSINESS
This business is more than just buying a truck and running the road. If the required mechanism and knowledge isn’t in place, you’ll fold up before you can even say Jack Robinson. Below, I have made known what you must have in place before you even consider doing this untapped business opportunity.
You must know a lot about the haulage and logistic industry before you dive in. Not doing this is like jumping into an ocean without fore knowledge of the depth. That’s suicide.
So, conduct a feasibility study and from there, draw out your business plan. This gives you a lot of knowledge about the business. It serves as a blueprint. Even if you’re going to lease to a haulage company, it will also be an added advantage to you. Knowledge they say is power.
This business is capital intensive. It needs a lot of finance to start. Getting a truck can cost between N10M – N20M.. Through your business plan, you’ll know the exact amount to begin with.
3. REGISTER YOUR BUSINESS
If you’re starting a haulage business, it’s paramount that you register your business with the Corporate affairs Commission. This will avert legal battles with authorities in charge. If you’re going to be leasing to a haulage company, then do well to make sure that your fleet is properly registered.
Haulage business is a profitable business. Not just a business, it’s an investment every investor needs to consider investing in. We’re in a stage where this business is at its peak and delving in means money. The good part is, you can make thousands monthly when you lease to a haulage company and at the same time, retain your sanity, without having to worry about management.
If you have any question, contribution or suggestion, use the comment box.. Thanks!