This article explains the steps to start a logistics business in Nigeria.
I hope you find this post informative and helpful. The logistics sector is also
known as the transport sector. Logistics companies usually specialize in
transporting goods from one point to another.
The history of "logistics" dates back to the late 19th century.
The Oxford dictionary defines logistics as the branch of military science
dealing with the acquisition, maintenance and transport of materials, personnel
and equipment. During World War I and World War II, logistics shifted from war
to business and was used to ensure the easy movement of weapons and food after
the war.
In Nigeria, there are logistics companies that deliver goods from one place to another. We have Marine Logistics, Courier Plus Services Limited, GIG Logistics, Creceada International Limited, etc. And all these companies started from the same place.
You may also be interested in: How to Start a Logistics
Industry in Nigeria? The purpose of this article is to explain how to start and
run a good logistics business in Nigeria.
Here are 10 Steps to Start a Logistics Business in Nigeria
• Decide What Level of Service
You Want
Before entering the industry, decide at what level you can work. Can you
work on a bus or motorcycle, intrastate or interstate? Industry (oil and gas).
Do you want to start as an agent, carrier or contractor? It's all up to you to
decide.
You can start as an agent, who acts as a link between the carrier (the
owner of the truck) and the industry that needs transportation services. As an
agent, you don't have to buy the vehicle yourself and your commission is taken
from an agreed percentage of the transport cost.
But if you want to start as a carrier, you will need your own car and a
driving license to work. You can also start as a contractor and contact the
carrier after receiving the contract. You may be wondering if the same person
can be an agent, carrier and contractor. Yes, it is absolutely possible. If you
have a car and a driver's license, you can fulfill any contract given to you.
• Securing Adequate Financing and Capital
Once you have established your level of business, you will need
sufficient capital to secure your equipment and staff. While writing this
article, I researched the capital needed to start this logistics business and I
found out that your capital can be as low as N300,000.
Now, N300,000 may be a lot of money to some people, but when you think
about what you can do with that amount, I think it's a fair price. To raise
money for this business, you need to come up with a business plan that will
convince potential investors that you can make a profit within a certain period
of time. You can also increase your capital by taking out a loan from a
commercial bank.
• Buy the Equipment You Need
After you have received the capital, you will need to purchase the
necessary equipment to start your logistics business. First, you need to buy a
car. Buying a new car can be very expensive, so it may be a good idea to buy or
lease a regular used car until your business starts turning a profit.
When transporting products in high traffic areas, it is recommended to
use a motorcycle equipped with a plastic container. You will also need a mobile
phone for communication and other essentials that can be used to complete the
appropriate documentation.
• Establish and Develop the Business Plan
As an entrepreneur who wants to enter the field of logistics, you need to
develop and write a business plan that will help you generate income in a short
period of time. Your business plan should be short and concise. You need to
search for nearby companies that need delivery services. You should also
include large organizations that may need your services or businesses that need
food delivery or other packages. Obtaining a license / registering a business
As an entrepreneur, you must register your business and obtain a license.
Choose a business name and register it with the necessary authorities in
Nigeria. You should also find out what types of licenses and permits you need
and get them.
• Create an Online Platform / Set Up a Website
Before starting the business, you need to create a website for your
logistics business. This will help you get more customers. You can start by creating
a simple website and sharing it with family and friends. You may also use this
website to provide services to customers who require your services by providing
your contact information on the website and on the pages where customers can
order deliveries and submit complaints.
• Get a Driver
Once you've registered and have the necessary equipment, you'll need a
driver. Drivers are very important people in this industry. If you are a
beginner, it is better to become a private driver. Being a driver is very
important because you need to know the surroundings and the cities you deliver
to. After all, you need to be polite, trustworthy, able to communicate with
people and intelligent. As your business grows, you can hire more drivers and
train them how to handle deliveries.
• Get Office/Design Van
As your business grows, you will need to purchase office space, rent
office space, buy computers, and hire additional staff as needed. The vehicle
used to deliver the products represents the logistics company, so it must be
well maintained, have the name of the logistics company engraved on the body
and be well designed, as it is called in the industry "Packaging
Matters".
• Create a Business Card or Newsletter
As your business grows, you'll need to create business cards and
newsletters that include your business name, location, and phone number. This
can be used as another tool to increase public awareness of your brand.
• Get a Receipt
A signed receipt from the recipient is required as proof of receipt of
the ordered item.
As soon as all these 10 steps are completed, you are well prepared for Logistics Business in Nigeria
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