10 Steps to Start a Logistics Business in Nigeria


10 Steps to Start a Logistics Business in Nigeria

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

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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