Transportation business have been a lucrative business from time immemorial and many of the early birds have reaped lots of benefits that I cannot even fathom. Transport is now an exclusive part of our existence and the only option we have is making it better and more advanced.
One of the core reason why I love the transportation industry is the absence of loyal customers. Which means, you don’t have to toil to build a customer base before you can start making money. The only advice I usually give to prospective entrepreneurs is making a thorough research before delving in. Yes! You need to have a detailed business plan before you jump into the transportation business cause if you don’t, you’ll be kicked out of the big before you can even say Jack Robinson.
TYPES OF TRANSPORTATION BUSINESSES
First of all, how much do you have on you? Which aspect of transportation do you want to venture into? The cash at hand will determine which aspect of transportation.
1. OKADA (Commercial motorcycle)
With N150,000, you can become an Okada rider and make money on a daily basis. However, this type of transport works best in remote areas due to the fact that it has been banned in some areas. Okada riders makes approximately N5000 daily. That’s excluding fuel and maintenance.
2. TRI-CYCLING (Keke-napep or Keke)
Majority of people are into this specific mode of transportation and it’s very lucrative. Keke-napep cost around N300,000 – N500,000 to buy. They make more than N15,000 daily, depending on how smart and hardworking the rider is.
An average taxi driver makes over N20,000 daily. They are able to carry 5 people at once. Three in the back and two in front. A taxi cost over N2.5M and above.
This is the king of the road as long as people are concerned. The only problem is that they can waste time on the road, picking and dropping people whenever they reach their destination. However, people still use them and they make a lot daily. The amount they make is mind-blowing. Imagine carrying over 14 to 18 people at once. Do the maths yourself.
5. HAULAGE SERVICES
You’re right, this type of transportation doesn’t involve people rather goods, equipments, materials etc that needed to be transported from one place to the other. The amount they make per trip is better not mentioned. You’ll be amazed.
It’s worth to take note here that what influences price is distance and cost of fuel. Transportation Business is very lucrative when you transport from state to state. In which case, per people can pay over N5000 or more. When you’ll discover that this business is profitable is during the Christmas period when transportation is at its peak.
REASONS WHY TRANSPORTATION BUSINESS IS LUCRATIVE
You might be asking; “Henry, why should I start a transportation business here in Nigeria? Won’t I fail?”
Well, there are tons of reasons any you should consider this line of business. Remember In Nigeria, we have three means of transportation which is Air, Water and Land. Guess what, over 80% of Nigerians travel or go to places of interest by land. Below are more reasons why the transportation business is a lucrative goldmine.
1. ONLY 30% OF NIGERIANS HAVE A CAR
Every day, people needs transport in other to go to work, school or places of interest. In festive period, that’s when there’s usually a boom. Sometimes, individuals who have a car can decide to use a public transport just to save money.
2. IT CAN BE A PASSIVE INVESTMENT
Being in the transportation business doesn’t mean that you can’t do other businesses. Actually, you can simply employ a trustworthy driver who runs the business while you focus on your work, thereby diversifying your means of income.
3. IT’S VERY LUCRATIVE
Every type of transportation business ends up spilling a lot of money this their starters. A tricycle makes from N10,000 – N15,000 daily. There are lots of people who make even more enormous amount. For buses that runs from one state to the other, they make over N50,000 and above per day.
HOW TO START A TRANSPORTATION BUSINESS
By now, you’re already boiling with the question, “How do I start this profitable business?” If so, then let’s move to the next section of how to set up a transportation business here in Nigeria. Let’s kick on!
1. START SMALL
You heard me right. Starting small doesn’t mean you don’t have the finance to start big immediately. Far from it. It’s mainly to help you gain more experience and confidence on how the business is run. It doesn’t matter if you’re not the actual driver. No matter what, start small and grow.
2. FIND A PROFESSIONAL DRIVER
You don’t need to employ a reckless driver that will end up sending your vehicle to the grave. Before you give him the keys, learn a lot about his past experiences and the nature of relationship he had with his former employer. You don’t need an alcoholic or a weed smoker. Most of them don’t reason straight.
3. GET THE NECESSARY PAPERS
Make sure your driver has an unexpired driving license. Also make sure that you register with relevant transportation bodies and association like;
- Nigerian Association of Road Transport Owners (NARTO)
- Road Transport Employers Association of Nigeria (RTEAN)
- National Union of Road Transport Workers (NURTW)
- National Association of Government Approved Freight Forwarders (NAGAFF)
- Chartered Institute of Logistics and Transport (CILT)
NATURE OF PAYMENT
This is based on negotiation. Some drivers prefer weekly or monthly payments. While others prefers to make an account of certain amount for a specific period of time. It’s a common practice in the transportation business to return certain amount to the business owner after the agreed time. For example, the driver will be expected to make an account of N20,000 weekly or more depending on some factors.
So, if he was able to realise that amount in 4 days, the rest of the money automatically becomes his. However, it’s very important that you monitor your business well. To make sure that your vehicle is in perfect condition or else, you’ll be kicked out of business. That’s why I made emphasis on making sure you employ the right person, someone who won’t give you headache.
The transportation business is a goldmine and certainly the kind of business anyone should invest in. No business is risk-proof. Success lies on you – the starter and if you do this well, you’ll be able to reach the pinnacle of success.
If you have any question, use the comment box and I will respond immediately. Don’t forget to share using the buttons below.