Transportation and hailing business is fast becoming a significant contributor to the economy of Nigeria. With the popularisation of hailing services like Uber, Gokada and Oride, transportation business is as lucrative as it can be.
Going into transportation business can be a viable business idea as the huge population of Nigeria gives a big market to anybody going into the business.
This further gives credence to the need to consider transport business. Here are some easy steps to follow while setting up a transport business.
Firstly, to do well in transport business, the would be business owner should possess the key entrepreneur traits.
One of the major reasons for the need for entrepreneurship traits is that many people in the transportation trade are dishonest and there is need to show tact and innovation while handling such people.
One when employs the services of drivers and other workers , close attention should be given to all the activities of the drivers especially the trips that they make.
A daily or weekly remittance should be agreed upon and action plan should be made for enforcement of such agreement.
In essence, here are the abridged actions and steps to take while starting a transport business.
1. Decide on the type of transport business to start
Do you want to start up from motorcycle, tricycle or buses? What time of vehicles can your capital buy? These and other questions should be answered before the take off of the business.
2. Choose the routes and destination best suited
The intending entrepreneur should chose the routes and location that gives him the opportunity for profit maximazation with minimal cost.
We live in a country that is berserk with the activities of touts that parade themselves as Area boys. The intending bus operator should take cognizance their activities before siting his business
3. Obtaining of Vehicles/Registration
The next step is to buy s d register the vehicles with the necessary authorities. This will further give legitimacy to the business and avoid the intimidation from both the authorities and touts (Area boys).
The prospective transport business owner should register with the following associations.
- National Association of Road Transport Owners (NARTO).
National Union of Road Transport Workers (NURTW).
National Association of Government Approved Frieght Forwarders.
Road Transport Employers Association of Nigeria.
Take off of the Business.
This is the take off of the business proper and the most critical. The business owner should employ trust worthy hands. In the start up of the business, it is possible for the owner to manage it himself.
This will help him understand the market proper and the workers under him. There is also needs to engage the services of professional drivers and negotiate a favourable and workable deal between him and the workers.
The amount agreed should be visible and realistic for both parties and the experience and competence of the driver should be considered while making the offers.
Finally, efforts should be made not only at sustaining but growing the business. Early profits should be ploughed back to the business to grow and maintain the health of the business. Good deals should be pursued and in no time, the business is up and running.